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🤖 AI-Powered Stock Trading Bot

This AI-powered stock trading bot leverages OpenAI's advanced language models to analyze real-time market data, news sentiment, and technical indicators to make intelligent trading decisions. By integrating with Alpaca's trading platform and Yahoo Finance's data, it provides a fully automated solution for managing your stock portfolio.

🌟 Key Features

  • AI-Driven Decision Making: The bot utilizes OpenAI's state-of-the-art models, such as GPT-4, to analyze vast amounts of market data, news articles, and financial metrics. It processes this information to identify profitable trading opportunities and generate optimal trading strategies.

  • Real-Time Data: To ensure the most up-to-date information, the bot fetches real-time stock prices, company financials, and market news using Yahoo Finance's API. This data is continuously updated and fed into the AI models for accurate analysis.

  • Seamless Trade Execution: Once the AI models have determined the best trading actions, the bot seamlessly connects with Alpaca's trading API to execute buy and sell orders. This integration allows for fast and efficient trade execution without manual intervention.

  • Flexible Trading Modes: The bot supports various trading modes to cater to different user preferences. You can choose between fully automated trading, where the bot makes and executes decisions autonomously, or manual trade confirmation, where you review and approve each trade before execution. Additionally, a demo mode is available for simulated trading without using real funds.

  • Comprehensive Logging: To ensure transparency and facilitate performance tracking, the bot maintains detailed logs of all trading activities, market analysis, and AI-generated decisions. These logs provide valuable insights into the bot's performance and can be used for further optimization and backtesting.

  • Customizable Settings: The bot offers a wide range of customizable settings to align with your investment goals and risk tolerance. You can define trading parameters such as maximum position size, risk thresholds, and stock watchlists. These settings allow you to tailor the bot's behavior to your specific requirements.

📈 How It Works

  1. Data Collection: The bot starts by retrieving real-time stock data, company financials, and market news using Yahoo Finance's API. It gathers information such as stock prices, volume, financial ratios, and news articles related to the stocks in your watchlist.

  2. AI Analysis: The collected data is then fed into OpenAI's advanced language models, such as GPT-4. These models analyze the information to identify patterns, trends, and potential trading opportunities. They consider factors like price movements, news sentiment, and technical indicators to generate informed trading decisions.

  3. Decision Making: Based on the AI's analysis, the bot makes decisions to buy, sell, or hold specific stocks in your portfolio. It takes into account your predefined trading parameters, risk tolerance, and the current market conditions to determine the optimal actions.

  4. Trade Execution: Using Alpaca's trading API, the bot executes the trades according to the AI's recommendations. It places buy or sell orders on your behalf, ensuring fast and accurate execution. The bot handles all the necessary interactions with the trading platform, so you don't need to manually intervene.

  5. Logging and Monitoring: Throughout the trading process, the bot logs all trading activities, market data, and AI-generated decisions. These logs are stored for future reference and performance analysis. You can review the logs to gain insights into the bot's decision-making process, track its performance over time, and make informed adjustments to your trading strategy.

🚀 Getting Started

To set up and run the AI-powered stock trading bot, follow these steps:

  1. Prerequisites:

    • Python 3.7 or higher installed on your system
    • An OpenAI API key for accessing the language models
    • An Alpaca trading account with API credentials (key and secret key)

  2. Clone the Repository:

    git clone https://github.com/yourusername/ai-trading-bot.git
cd ai-trading-bot

  3. Install Dependencies:

    pip install -r requirements.txt

  4. Configure API Credentials:

    • Create a .env file in the project root directory.
    • Open the .env file and add your OpenAI API key, Alpaca API key, and Alpaca secret key in the following format: 
      OPENAI_API_KEY=your_openai_api_key
ALPACA_API_KEY=your_alpaca_api_key
ALPACA_SECRET_KEY=your_alpaca_secret_key
    • Save the .env file.

  5. Customize Bot Settings:

    • Open the config.py file in the project directory.
    • Modify the trading parameters, risk settings, and stock watchlist according to your preferences. You can adjust settings such as:
      • PAPER_TRADING: Set to True for demo mode (paper trading) or False for live trading.
      • WATCHLIST: Add or remove stock symbols to define your desired watchlist.
      • RISK_TOLERANCE: Set your risk tolerance level (e.g., 'low', 'medium', 'high').
      • MAX_POSITION_SIZE: Define the maximum percentage of your portfolio to allocate to a single stock.
    • Save the config.py file after making the necessary changes.

  6. Run the Bot:

    python main.py

    The bot will start running and continuously monitor the market, make trading decisions, and execute trades based on the AI's analysis.

  7. Monitor and Review:

    • The bot will generate logs of its trading activities, market analysis, and AI-generated decisions. These logs will be stored in the logs directory.
    • Regularly review the logs to monitor the bot's performance, understand its decision-making process, and make informed adjustments to your trading strategy if needed.

⚠️ Disclaimer

Please note that this AI-powered stock trading bot is provided for educational and informational purposes only. Trading stocks involves financial risk, and the use of this bot does not guarantee profits. The bot's performance may vary depending on market conditions, the accuracy of the AI models, and other factors.

Always conduct thorough research, understand the risks involved, and exercise caution when making investment decisions. The developers of this bot are not responsible for any financial losses incurred while using this tool.

📄 License

This project is licensed under the MIT License. See the LICENSE file for more details.

🤝 Contributing

Contributions to improve the bot's functionality, performance, or user experience are welcome! If you encounter any issues, have suggestions for enhancements, or want to add new features, please open an issue or submit a pull request on the GitHub repository.

📧 Contact

For any questions, feedback, or inquiries, please contact the project maintainer at [email protected].

Happy trading and may the AI be with you! 📈🚀