Building a crypto trading bot: why engineering matters more than strategy
A technical guide from Xingyao Byte argues that trading bot strategy accounts for only about 10% of success, with the remaining 90% depending on robust engineering infrastructure. Key components include proper handling of exchange APIs via REST and WebSocket connections, with careful management of rate limits, reconnections, and request authentication. The guide emphasizes that every order must carry a client-generated ID to prevent duplicate submissions during network timeouts, and that local bot state must be periodically reconciled against the exchange as the authoritative source of truth. A dedicated risk layer — enforcing position limits, daily loss kill switches, and dead-man's switches — must operate independently of and above the trading strategy. The article concludes that durable bots are distinguished not by clever signals but by their ability to safely handle infrastructure failures such as dropped connections, double submissions, and sudden market crashes.
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