DeepSeek AI Trading Bot

A 24/7 crypto trading bot powered by DeepSeek AI that makes autonomous trading decisions every 3 minutes. The bot enforces strict risk management, position exclusivity (no hedging), and always uses OCO (stop-loss + take-profit) orders.

Features

• AI-Powered Decisions: Uses DeepSeek AI to analyze market data and make trading decisions
• 24/7 Operation: Runs continuously with 3-minute decision cycles
• Risk Management: Enforces strict risk limits (2% max account risk, 0.5% per trade)
• Position Exclusivity: Never holds both long and short positions on the same symbol
• OCO Orders: All positions include stop-loss and take-profit orders
• Flip Logic: Automatically closes opposite positions before opening new ones
• Comprehensive State: Analyzes prices, indicators, funding, OI, and account data

Architecture

src/
├── config/
│   ├── config.js          # Configuration management
│   └── prompts.js         # AI system prompt and tool definitions
├── broker/
│   └── broker.js          # Exchange interface with position exclusivity
├── ai/
│   └── deepseek.js        # DeepSeek AI integration
├── data/
│   └── stateGenerator.js  # Market data and state payload generation
├── trading/
│   └── tradingLoop.js     # Main trading loop with cron scheduling
├── utils/
│   └── logger.js          # Logging utility
├── index.js               # Main application entry point
└── test.js                # Test suite

Quick Start

1. Install Dependencies

   npm install

2. Configure Environment

   cp env.example .env
   # Edit .env with your API keys and settings

3. Set Up Environment Variables

   # Required
   DEEPSEEK_API_KEY=your_deepseek_api_key_here
   
   # Optional (with defaults)
   DEEPSEEK_BASE_URL=https://api.deepseek.com
   ACCOUNT_VALUE_USD=10000
   MAX_ACCOUNT_RISK_PCT=2.0
   PER_TRADE_RISK_PCT=0.5
   TRADING_ENABLED=false

4. Test the Setup

   npm test

5. Run the Bot

   npm start

Configuration

Environment Variables

Variable	Description	Default	Required
DEEPSEEK_API_KEY	DeepSeek AI API key	-	Yes
DEEPSEEK_BASE_URL	DeepSeek API base URL	https://api.deepseek.com	No
ACCOUNT_VALUE_USD	Account value in USD	10000	No
MAX_ACCOUNT_RISK_PCT	Max account risk percentage	2.0	No
PER_TRADE_RISK_PCT	Max risk per trade percentage	0.5	No
TRADING_ENABLED	Enable actual trading	false	No
LOG_LEVEL	Logging level	info	No

Risk Management

• Account Risk: Maximum 2% of account value at risk across all positions
• Per Trade Risk: Maximum 0.5% of account value per individual trade
• Position Exclusivity: Only one direction per symbol (no hedging)
• OCO Orders: All positions must have stop-loss and take-profit orders

AI Decision Making

The bot uses DeepSeek AI with a comprehensive system prompt that includes:

Trading Rules

• Long Signals: Price > EMA20 AND (MACD momentum up OR RSI(7) crosses up from <30)
• Short Signals: Price < EMA20 AND (MACD momentum down OR RSI(7) crosses down from >70)
• Trend Filter: If 4h trend conflicts with intraday bias, halve position size

Position Management

• Exclusivity: Never hold both long and short on the same symbol
• Flip Logic: Close existing position before opening opposite direction
• Invalidation: Exit positions when invalidation conditions are met

Risk Controls

• Size Limits: Respect maximum risk per trade and account
• Funding Filter: Avoid entries when funding is against the trade
• Liquidity Filter: Consider open interest changes

State Payload

Every 3 minutes, the bot generates a comprehensive state payload including:

• Account Info: Value, balance, PnL, position count
• Current Positions: Symbol, side, size, entry price, PnL, SL/TP
• Market Data: Prices, technical indicators (EMA, RSI, MACD), funding rates
• Risk Metrics: Total risk, account risk percentage, utilization
• Market Microstructure: Open interest, volume, volatility

Tool Functions

The AI can execute these functions:

• get_positions() - Retrieve current positions
• place_order() - Place new order with OCO
• close_position() - Close existing position
• modify_orders() - Adjust stop-loss/take-profit
• flip_position() - Close and open opposite position atomically
• log_note() - Log decision rationale
• set_risk() - Update risk parameters

Development

Project Structure

• Mock Broker: Currently uses mock implementation for testing
• Real Exchange Integration: Replace src/broker/broker.js with actual exchange API
• Market Data: Replace mock data in src/data/stateGenerator.js with real market feeds

Testing

# Run all tests
npm test

# Test specific components
node src/test.js

Adding New Exchanges

1. Implement exchange-specific broker in src/broker/
2. Update configuration in src/config/config.js
3. Add exchange-specific market data in src/data/stateGenerator.js

Safety Features

• Trading Disabled by Default: Set TRADING_ENABLED=true to enable
• Position Exclusivity: Enforced both in AI prompt and broker code
• Risk Limits: Hard-coded limits prevent excessive risk
• Error Handling: Continues operation despite individual cycle failures
• Graceful Shutdown: Handles SIGINT/SIGTERM signals

Monitoring

The bot logs all activities including:

• Trading cycle execution
• AI decisions and tool calls
• Order placements and modifications
• Position changes
• Error conditions

License

MIT License - see LICENSE file for details.

Disclaimer

This software is for educational purposes only. Trading cryptocurrencies involves substantial risk of loss. Use at your own risk.