CPTA
Cryptocurrency Pairs Trading Application that takes the market arbitrage concept to the next level
About the project
Overview
In November 2021, Business & Modernity, a Ukrainian-based investment fund, approached the ID AL. Solutions team with a request to develop an algorithm for pair (arbitrage) trading in the cryptocurrency market, as well as a complementary trading application that would be simpler and more intuitive than the majority of existing trading terminals. The aim of this development was to diversify the client’s investment portfolio based on the interest in emerging and promising direction in the financial world.
After preliminary analysis and consultations with experts, we created a roadmap for the 6-month product delivery process – from investigation to deployment. During this time, a team of 3 developers created and delivered the first fully functional version of CPTA
Challenge
Business Problem
The biggest and most evident challenge was to develop a secure and profitable trading algorithm. The incremental implementation of new trading approaches required including tools for validating, monitoring, and evaluating each phase. Consequently, in addition to an enhanced management system, it was imperative to incorporate a “paper” trading mode – a demo mode that brings the trader as close as possible to real market conditions without using his actual funds.
Furthermore, the nature of pair trading necessitates minimal system response time and stability, as any delays or failures often result in significant losses. Hence, it was crucial to employ high-performance and fault-tolerant technologies and approaches when constructing the trading system
Implementation
Solution by ID AL. Solutions
Our team’s efforts resulted in a sophisticated trading system centered around an automated pairs trading algorithm, utilizing principles derived from advanced mathematics and statistics.
The architecture of the solution is built on a microservice approach, leveraging the core reactive framework. This design choice allowed us to achieve the required levels of fault tolerance, scalability and performance, ensuring that the system operates reliably even under demanding conditions, and providing a solid foundation for future enhancements and extensions.
Additionally, the system boasts the following features:
- Administrative Panel: Web application that provides comprehensive control and analysis capabilities for managing the trading process. This intuitive panel enables users to monitor various aspects of the system, make informed decisions, and optimize trading strategies
- Deposit Redistribution Service: This service automatically reallocates funds between accounts on different cryptocurrency exchanges, ensuring optimal distribution and maximizing trading opportunities
- Telegram Bot: Chat bot serving as a communication channel, providing real-time notifications about the progress and updates of the trading process
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ID AL. Solutions takes a different approach to IT-service delivery, primarily focusing on maximum value for a reasonable price. Our developers have more than 5 years of commercial experience with dozens of successfully delivered projects
Solution
Key Features
Security of trade
Real-time volatility filters, fund rebalancing and position hedging, among other features, ensure a safe and robust trading process
Multiple API integration
Several leading cryptocurrency platforms, including Binance, KuCoin, Okex, Crypto.com, Huobi and others, seamlessly integrated through a zero-delay Websocket protocol
User-friendly Admin UI
Responsive and intuitive cloud-based administrative panel, providing comprehensive trading run data, application metrics information, and customer management capabilities
Instant notification
With Telegram chatbot integration, the user is always kept abreast of any trading and market events via any device (mobile, tablet, smart wearables or desktop)
High performance
Each market quote is completely processed in less than 10 milliseconds, ensuring swift execution without any significant delays. The system maintains this level of efficiency even as new exchanges, users, or logic modules are added
Technology
Tech Stack Used
Frontend
- Angular (TypeScript)
- NGX Bootstrap
- Styled Components
Backend
- Java 17
- Spring Framework (Boot, WebFlux, Cloud, Gateway, Security)
- Python 3+
- FastAPI
- Netflix Eureka
- Apache Kafka
Machine Learning
- Keras
- TensorFlow
- Jupyter Notebook
DevOps
- Docker Compose
- Kubernetes
- AWS Cloud
- GitLab pipelines
Storage
- MongoDB
- PostgreSQL
Business Value
Results
The customer continues to expand their business successfully, thanks to the efficient and secure operation of CPTA.
While the financial results of the project are not disclosed, the positive feedback received from the client and our ongoing collaboration on further project development are indicative of the success of the CPTA case
…we were not mistaken in choosing ID AL. Solutions. We greatly appreciated their professionalism, effective communication, and timely delivery, which made the entire development process a seamless experience…
Contacts
Let’s Get in Touch!
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