An advanced automated trading bot designed for Deriv’s synthetic markets using MetaTrader 5 (MT5) integration. This bot implements sophisticated trading strategies with risk management, backtesting capabilities, and real-time market analysis.

Features

• Automated Trading - Fully automated trading execution on Deriv synthetic markets
• Multiple Strategies - Implementation of various trading strategies (trend following, mean reversion, breakout)
• Risk Management - Advanced risk management with position sizing and stop-loss
• Backtesting Engine - Comprehensive backtesting with historical data analysis
• Real-time Monitoring - Live monitoring of trades and performance metrics
• MT5 Integration - Seamless integration with MetaTrader 5 platform
• Performance Analytics - Detailed performance analysis and reporting
• Custom Indicators - Support for custom technical indicators

Trading Strategies

Trend Following Strategy

• Moving Average Crossover - Uses multiple moving averages for trend identification
• MACD Strategy - MACD indicator-based trend following
• Bollinger Bands - Volatility-based trend trading
• RSI Divergence - RSI divergence for trend reversal detection

Mean Reversion Strategy

• Bollinger Bands Reversion - Trading at band extremes
• RSI Overbought/Oversold - RSI-based mean reversion
• Stochastic Oscillator - Stochastic-based reversal trading
• Support/Resistance - Price level-based mean reversion

Breakout Strategy

• Channel Breakouts - Trading breakouts from price channels
• Volatility Breakouts - Volatility expansion-based trading
• News-Based Breakouts - Economic news impact trading
• Pattern Breakouts - Technical pattern breakout trading

Tech Stack

• Language: Python 3.8+
• Trading Platform: MetaTrader 5 API
• Data Analysis: Pandas, NumPy, TA-Lib
• Backtesting: Custom backtesting engine
• Database: SQLite for trade logging
• Web Interface: Flask for monitoring dashboard

Installation & Setup

1. Clone the repository:

   git clone https://github.com/1cbyc/deriv-mt5-bot.git
   cd deriv-mt5-bot
   

2. Install dependencies:

   pip install -r requirements.txt
   

3. Configure MT5 connection:

   cp config.example.yaml config.yaml
   # Edit configuration with your MT5 credentials
   

4. Run the bot:

   python main.py
   

Configuration

Strategy Configuration

strategies:
  trend_following:
    enabled: true
    parameters:
      fast_ma: 10
      slow_ma: 20
      stop_loss: 0.02
      take_profit: 0.04
  
  mean_reversion:
    enabled: true
    parameters:
      rsi_period: 14
      oversold: 30
      overbought: 70
      stop_loss: 0.015

Risk Management

risk_management:
  max_position_size: 0.02  # 2% of account
  max_daily_loss: 0.05    # 5% daily loss limit
  max_open_trades: 3
  correlation_limit: 0.7

Usage Examples

Basic Trading Bot

from deriv_bot import DerivBot

# Initialize bot
bot = DerivBot(config_file='config.yaml')

# Start trading
bot.start_trading()

Custom Strategy Implementation

class CustomStrategy:
    def __init__(self, parameters):
        self.rsi_period = parameters['rsi_period']
        self.oversold = parameters['oversold']
        self.overbought = parameters['overbought']
    
    def generate_signal(self, data):
        rsi = calculate_rsi(data, self.rsi_period)
        
        if rsi < self.oversold:
            return 'BUY'
        elif rsi > self.overbought:
            return 'SELL'
        return 'HOLD'

Backtesting

# Run backtest
results = bot.backtest(
    strategy='trend_following',
    start_date='2024-01-01',
    end_date='2024-12-31',
    initial_capital=10000
)

# Analyze results
print(f"Total Return: {results['total_return']:.2%}")
print(f"Sharpe Ratio: {results['sharpe_ratio']:.2f}")
print(f"Max Drawdown: {results['max_drawdown']:.2%}")

Performance Metrics

Key Performance Indicators

• Total Return - Overall portfolio performance
• Sharpe Ratio - Risk-adjusted returns
• Maximum Drawdown - Largest peak-to-trough decline
• Win Rate - Percentage of profitable trades
• Profit Factor - Ratio of gross profit to gross loss
• Average Trade - Average profit/loss per trade

Risk Metrics

• Value at Risk (VaR) - Potential loss at confidence level
• Expected Shortfall - Average loss beyond VaR
• Volatility - Standard deviation of returns
• Beta - Market correlation measure

Monitoring Dashboard

Real-time Monitoring

• Live Trade Status - Current open positions and P&L
• Performance Charts - Real-time performance visualization
• Risk Metrics - Current risk exposure and limits
• Strategy Performance - Individual strategy performance

Historical Analysis

• Trade History - Complete trade log with analysis
• Performance Reports - Monthly/quarterly performance reports
• Strategy Comparison - Performance comparison across strategies
• Risk Analysis - Historical risk metrics and analysis

Security Features

Account Protection

• API Key Security - Secure storage of API credentials
• Trade Limits - Maximum trade size and frequency limits
• Emergency Stop - Immediate trading halt functionality
• Audit Logging - Complete audit trail of all actions

Risk Controls

• Position Limits - Maximum position size controls
• Loss Limits - Daily and total loss limits
• Correlation Limits - Maximum correlation between positions
• Volatility Limits - Maximum volatility exposure

Project Impact

This trading bot has been used for:

• Personal Trading - Automated personal trading strategies
• Educational Purposes - Learning algorithmic trading concepts
• Strategy Development - Testing and refining trading strategies
• Risk Management - Implementing systematic risk controls

Future Enhancements

• Machine Learning - ML-powered strategy optimization
• Multi-Asset Trading - Support for multiple asset classes
• Advanced Analytics - Enhanced performance analytics
• Mobile App - Mobile monitoring and control
• Social Trading - Copy trading and social features