81 lines
3.9 KiB
Markdown
81 lines
3.9 KiB
Markdown
# Trading212 "Touch & Turn" Scalping Bot
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This project implements the "Touch & Turn" scalping strategy (Opening Range Liquidity Reversal) in Python for the Trading212 API. It is specifically designed to trade US Equities at the 09:30 EST market open.
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## ⚠️ Disclaimer
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**This software is for educational purposes only.** Trading in financial markets involves a high degree of risk. Always use the practice/demo environment (`demo.trading212.com`) to test strategies before using real money.
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---
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## Strategy Overview
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The strategy capitalizes on the initial liquidity and volatility of the US market open.
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1. **The Setup:** Captures the high and low of the first 15-minute candle (09:30 - 09:45 EST).
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2. **The Filter:** The range of this opening candle must be at least **25%** of the stock's 14-day Average True Range (ATR).
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3. **The Trigger (ISA Optimized):**
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- **LONG (Bearish candle):** Bot places an immediate **Market BUY** order for the stock.
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- **SHORT (Bullish candle):** Since standard shorting is restricted in UK ISAs, the bot automatically substitutes this with a **Market BUY** order for a **3x Inverse ETP** (e.g., buying `3SLA` if `TSLA` gives a short signal).
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4. **The Targets:**
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- Brackets are placed **immediately** after the market order is filled, using the **Actual Fill Price** from your portfolio.
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- **Take Profit (TP):** The 38.2% Fibonacci retracement level.
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- **Stop Loss (SL):** Placed to ensure a Risk:Reward ratio of 1:2.
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5. **Time Exit:** All open positions are forcefully closed via Market Order at **11:00 EST**.
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---
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## Installation & Setup
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1. **Clone the repository and set up a virtual environment:**
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```bash
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python3 -m venv venv
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source venv/bin/activate
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pip install -r requirements.txt
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```
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2. **Configure Environment Variables:**
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Create a `.env` file in the root directory:
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```ini
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TRADING212_API_KEY_ID=your_key_id_here
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TRADING212_API_KEY=your_api_key_here
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TRADING212_BASE_URL=https://demo.trading212.com/api/v0/
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ISA_MODE=True
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```
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---
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## Risk Management & Position Sizing
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The bot uses dynamic **Risk-Based Position Sizing** to ensure consistent exposure.
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- **5% Risk Rule:** By default, the bot risks **5% of your account balance** per trade.
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- **Virtual Balance simulation:** If you are testing on a demo account with a large balance (e.g., £5,000) but plan to trade live with £250, the bot can maintain perspective. It automatically calculates a "Virtual Balance" by subtracting £4,750 from your actual total, ensuring your risk amount is exactly what it will be in the real world. (e.g. £12.50 risk on a £250 virtual balance).
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- **Leverage Adjusted:** For Inverse ETPs (3x leverage), the bot adjusts the quantity and bracket percentages to ensure the monetary risk remains identical to a standard 1x stock trade.
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---
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## Automation Workflow
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The bot is designed to be triggered once per day (e.g., via a **systemd timer** or cron) at exactly **09:30 EST**.
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1. **Scan:** Runs the ISA candidate filter to find the most volatile US stocks.
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2. **Backtest:** Runs a 60-day historical backtest on the top 10 candidates.
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3. **Select:** Picks the **Top 3** tickers that showed a positive historical return (Net PnL > 0 R).
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4. **Execute:** Spawns parallel threads to monitor and trade the selected assets.
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5. **Clean:** Shuts down automatically after the 11:00 EST exit and cleanup.
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---
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## Monitoring
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- **Logs:** All activity is recorded in `logs/bot_YYYY-MM-DD.log`.
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- **PnL Tracking:** A permanent ledger of every trade (including ETP substitutions) is kept in `pnl_tracking.csv` for graphing and analysis.
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## Architecture
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* **`src/api/client.py`:** REST API wrapper with Basic Auth.
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* **`src/strategy/touch_turn.py`:** Logic engine and Fibonacci calculator.
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* **`src/strategy/inverse_mapping.py`:** Map of US stocks to 3x Short Inverse ETPs.
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* **`src/execution/manager.py`:** Handles market entries, actual fill-based bracketing, and ISA substitutions.
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* **`main.py`:** The morning orchestrator.
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