cryptodex

A python tool to automate and mantain a cryptocurrency-based portfolio tracking the market index.

Disclaimer

I am not a qualified licensed investment advisor and I don't have any professional finance experience. This tool neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any cryptocurencies assets. Use it at your own risk.

Installation & Requirements

Make sure you're in your virtual environment of choice, then run

• poetry install --no-dev if you have Poetry installed
• pip install -r requirements.txt otherwise

Explanation

This tool helps applying the "own the market" approach popularized by global index funds to the cryptocurrency market. It will automatically build a portfolio by fetching a list of the top cryptocurrencies by market cap available in your exchange of choice, sets their allocation based on its square root (to avoid over-representatio of big players like bitcoin) and spread any investment made to it accordingly. By making regular investments over time, the portfolio will be kept up to date with the latest market cap rankings and rebalanced to target the updated allocations.

Usage

cryptodex [OPTIONS] STRATEGY COMMAND [ARGS]...

  Automate and mantain a cryptocurrency-based portfolio tracking the market
  index.

  STRATEGY: path to the .toml strategy file

Options:
  -v, --verbose  Increase output verbosity.
  --help         Show this message and exit.

Commands:
  balance  Display your current portfolio balance
  buy      Invest a lump sum into the portfolio
  refresh  Re-fetch current assets prices / allocations
  sell     Sell the equivalent of a lump sum from your portfolio

Strategy File

The application is started by passing the path to a strategy file, a .toml configuration file dicting how the portfolio should be built, which currency to base the trades on and which exchange to use. An example strategy file is:

# the fiat currency to use as base for all cryptocurrency trading
# allowed currencies so far are ["usd", "eur", "gbp"]
currency = "usd"

[portfolio]
# the amount of assets to hold in the portfolio. the assets will be fetched 
# from the assets on the exchange which are available for trading with the
# fiat currency specified above  and will be allocated based on the square 
# root of their market cap
assets = 10

# exclude the assets in the list from being allocated in the portfolio.
# list assets by their symbol, e.g. "xbt", "eth"
exclude = []

# number of 'frozen' assets to keep in the portfolio, on top of the ones above.
# a 'frozen' asset is an asset which is allocated in the portfolio based on its
# market cap, but is neiher sold or bought. They are effectively used as
# 'buffers' to avoid having repeated buy / sell orders due to assets
# bouncing in and out of your portfolio because of their market cap changing.
frozen = 2

[exchange]
# name of the exchange platform to fetch assets from / send orders to,
# plus the secret and private details for its API key.
# supported exchanges so far are ["kraken"]
platform = "kraken"
key = "keykeykeykeykeykeykeykeykeykeykeykeykeykeykeykeykeykeykey"
secret = "secretsecretsecretsecretsecretsecretsecretsecretsecretsecretsecretsecretsecretsecretsecr"

Commands

Once initialized with a strategy file, cryptodex will connect to the specified exchange, sync / build up your portfolio and start an interactive shell. At this point you can pass one of the following commands:

balance

Displays your current portfolio balance, alongside with the latest target allocation.

Options:

• --log: Writes the current portfolio balance to a timestamped .csv file inside a .balances folder in the current working directory

buy [OPTIONS] [AMOUNT]

Invest a lump sum [AMOUNT] into the portfolio by purchasing assets units proportionally to their target allocations.

Options:

• --estimate: Estimate and display the portfolio balance after the sale
• --rebalance / --no-rebalance: Rebalance the portfolio towards its planned allocation during the purchase (default: rebalance)
• --mock / --no-mock: Only validate orders, do not send them to the exchange (default: mock)

sell [OPTIONS] [AMOUNT]

Sell the equivalent of a lump sum [AMOUNT] from your portfolio by selling assets units proportionally to their target allocations.

Options:

• --estimate: Estimate and display the portfolio balance after the sale
• --rebalance / --no-rebalance: Rebalance the portfolio towards its planned allocation during the sale (default: rebalance)
• --mock / --no-mock: Only validate orders, do not send them to the exchange (default: mock)

refresh

Re-fetch current assets prices / allocations

When calling buy or sell, you will be presented with a list of the orders that will be sent to the exchange to fullfill your request. To see an estimate of what your portfolio will look like once the orders are through, pass the --estimate flag.

By default, buy and sell run in mock mode, which tells the exchange to only validate orders without executing them. To tell the exchange to actually process the orders, pass the --no-mock flag (you will be asked to confirm the orders submission anyway).

Exchanges

The application is built in a modular way to support different exchange platforms - right now the only supported exchange is Kraken. To implement additional exchanges, extend the abstract Exchange class and implement all required abstract methods.

Support

If this tool has proven useful to you, consider buying me a coffee to support development of this and many other projects.