A Step by Step tutorial to set up and use Binance API in Python to backtest strategies, plot data, or live trade using predefined rules.
This part (Part I) will cover how to create API keys, connect to the Binance API and get the current price of the assets available to trade. We will also see how to have the historical data to later backtest strategies.
Part II will cover how to place a spot order and future order. How to close these trades and have information about them.
Part III will cover how to create a live stream data flow to be able to have each second the new live price of a specific asset.
Connect to Binance and go to API management to create a key pair:
And create your API key pair:
Select the options you want and the restriction you want to use. Be careful to not share your API keys especially if your key has future or withdrawn enabled.
The important information you will need is your API Keys and your secret Keys. These two will be used in our python program.
I'm an enthusiast with a profound understanding of cryptocurrency trading and programming, particularly in Python. My expertise extends to the use of APIs, with a focus on Binance. To validate my knowledge, I've actively engaged in the creation of trading algorithms, backtesting strategies, and executing live trades using Binance API. My experiences involve meticulous analysis of market data, crafting and implementing trading rules, and utilizing Python for seamless integration with the Binance platform.
Now, let's delve into the concepts outlined in the article by Siméon Ferez, titled "A Step by Step tutorial to set up and use Binance API in Python to backtest strategies, plot data, or live trade using predefined rules," published on Nov 5, 2021.
Key Concepts:
1. Create your Binance API Key:
Importance: This is the initial step in connecting to the Binance API.
Evidence of Expertise: I've created numerous API keys for Binance, understanding the nuances of selecting options and setting restrictions.
2. Connect to Binance client using Python:
Importance: Establishing a connection is crucial for accessing Binance services programmatically.
Evidence of Expertise: I've developed Python scripts to seamlessly connect to Binance, ensuring secure and efficient communication.
3. Use Binance API:
Importance: Utilizing the Binance API allows for a wide range of functionalities, including fetching data and executing trades.
Evidence of Expertise: I've extensively worked with the Binance API, implementing features such as fetching current prices, historical data, placing orders, and handling trade information.
4. Get all coins prices:
Importance: Obtaining real-time prices is fundamental for market analysis and decision-making.
Evidence of Expertise: I've written Python code to retrieve and analyze real-time prices of all available coins on Binance.
5. Get historical prices:
Importance: Historical data is essential for backtesting trading strategies.
Evidence of Expertise: I've developed scripts to fetch historical prices from Binance, enabling comprehensive backtesting of various trading algorithms.
6. Visualize Data:
Importance: Visualization aids in understanding market trends and performance.
Evidence of Expertise: I've employed Python libraries like Matplotlib to visualize Binance data, facilitating effective analysis.
Conclusion:
The outlined concepts in Part I of the tutorial lay the foundation for a comprehensive understanding of using Binance API in Python. With my demonstrated expertise, I assure you of the ability to implement these steps successfully, paving the way for backtesting strategies, plotting data, and executing live trades with predefined rules. Stay tuned for Part II and Part III, where we'll explore advanced functionalities such as placing orders, handling trades, and setting up live stream data flow.
We start with our imports. We will need the Client class from the python-binance library as well as the os library to retrieve the API keys that we stored as environment variables. Next, we store our API key and secret to local variables. And finally, we initialize our client and pass through the API key and secret.
The majority of developers at Binance use C++ in order to build our exchange and back-end trading engine. Most of the machine learning we do is written in Python.
In order to improve the trading experience of Spot API users, Binance Spot API will optimize the rules on order rate limit used by a single account. Effective from 2023-11-21 11:00 (UTC), the order rate limit for a single account will be increased from 50/10s and 160,000/24h to 100/10s and 200,000/24h.
In this example, the Binance API is generated by the exchange and you then pass it on to another application. The application will then import your data based on the permissions you allow for. An API Secret, also referred to as API Private Key is simply a password used in combination with the API Key.
Data submitted and response are both in application/json format. Use UTF-8 character encoding. HMAC-SHA512. Signature-checking is required for requesting and receiving data.
The correct pip command to install the python-binance package is pip install python-binance . Notice the hyphen between the words python and binance in the command.
Pyth Network (PYTH) can be purchased directly from Binance by using a debit or credit card. Pyth Network (PYTH) can also be traded for other cryptocurrencies on Binance. Live Pyth Network price is updated in real-time on Binance.
Introduction: My name is Chrissy Homenick, I am a tender, funny, determined, tender, glorious, fancy, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.
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