Modular blockchain-implemented components for algorithmic trading
Example methods and systems are directed to providing an algorithmic trading system. One or more self-executing contracts are deployed on a blockchain network to provide at least one indicator and at least one comparator. Each indicator processes external asset data to obtain indicator values. Each comparator processes one or more of the indicator values to obtain output indicating whether a comparator condition is met. A trading bot is generated on the blockchain network to implement predetermined trading rules by using the output of at least one comparator. The trading bot may execute simulated trades according to the predetermined trading rules.
1. A system comprising:
at least one memory component that stores instructions; and
one or more processors configured by the instructions to perform operations comprising causing one or more self-executing contracts deployed on a blockchain network to:
instantiate a plurality of child indicators, wherein each child indicator processes external asset data to obtain indicator values, and each child indicator is instantiated, based on a parent indicator on the blockchain network, using a unique combination of indicator parameters;
instantiate a plurality of child comparators, wherein each child comparator integrates a combination of the plurality of child indicators and processes inputs comprising one or more of the indicator values from the combination of the plurality of child indicators to obtain output indicating whether a comparator condition is met, and each child comparator is instantiated, based on a parent comparator on the blockchain network, using a unique set of identifiers associated with the combination of the plurality of child indicators;
store, on the blockchain network, a data structure identifying a combination of the plurality of child comparators defining a trading bot
execute, by the trading bot and on the blockchain network, simulated trades according to predetermined trading rules that are based on the combination of the plurality of child comparators in the data structure and additional bot parameters; and
automatically update, by a keeper network on the blockchain network, the plurality of child indicators, the plurality of child comparators, and the trading bot, wherein the keeper network comprises dedicated keepers to access timing parameters of and periodically update respective ones of the plurality of child indicators, the plurality of child comparators, and the trading bot on the blockchain network, and wherein the keeper network is controlled by one or more off-chain scripts.
2. The system of claim 1 , wherein
each parent indicator is used to instantiate a plurality of different child indicators on the blockchain network.
3. The system of claim 1 , wherein
each parent comparator being is used to instantiate a plurality of different child comparators on the blockchain network.
4. The system of claim 1 , wherein the combination of the plurality of child indicators comprises a first child indicator and a second child indicator, and each child comparator analyzes the indicator values of the first child indicator and the second child indicator associated with the child comparator respectively to determine whether the comparator condition is met.
5. The system of claim 1 , wherein the unique set of identifiers comprises an identifier of a first child indicator, an identifier of the parent indicator of the first child indicator, an identifier of a second child indicator, and an identifier of the parent indicator of the second child indicator.
6. The system of claim 1 , wherein the simulated trades comprise trading of a virtual asset, and a price of the virtual asset is linked to a price of a real-world asset provided by the external asset data.
7. The system of claim 6 , wherein the real-world asset is a cryptocurrency asset.
8. The system of claim 1 , the operations further comprising causing the one or more self-executing contracts deployed on the blockchain network to:
obtain the external asset data via a blockchain oracle.
9. The system of claim 1 , wherein execution of each simulated trade comprises:
determining a current indicator value of each child indicator;
detecting, based on the current indicator value of each child indicator, that each comparator condition is met; and
responsive to detecting that each comparator condition is met, executing the simulated trade according to the predetermined trading rules.
10. The system of claim 1 , wherein the predetermined trading rules comprise entry and exit rules implemented by the combination of the plurality of child comparators.
11. The system of claim 1 , the operations further comprising causing the one or more self-executing contracts deployed on the blockchain network to:
generate performance data based on the simulated trades executed by the trading bot; and
output, onto the blockchain network, a data feed comprising at least some of the performance data of the trading bot.
12. The system of claim 11 , the operations further comprising causing the one or more self-executing contracts deployed on the blockchain network to:
provide controlled access to the data feed to enable a requesting entity to utilize the performance data.
13. The system of claim 12 , wherein the requesting entity utilizes the performance data in a synthetic asset protocol.
14. The system of claim 12 , wherein the requesting entity comprises an external self-executing contract.
15. The system of claim 1 , the operations further comprising causing the one or more self-executing contracts deployed on the blockchain network to:
provide a marketplace for trading ownership rights to at least one of trading bots, indicators, or comparators, the marketplace comprising a plurality of listings accessible via the blockchain network.
16. The system of claim 15 , wherein the ownership rights are represented by non-fungible tokens (NFTs).
17. The system of claim 15 , the operations further comprising:
generating an NFT representing the trading bot; and
assigning the NFT to an address associated with a user.
18. The system of claim 1 , wherein the operations further comprise:
deploying the one or more self-executing contracts to the blockchain network.
19. A method comprising causing one or more self-executing contracts deployed on a blockchain network to:
instantiate a plurality of child indicators, wherein each child indicator processes external asset data to obtain indicator values, and each child indicator is instantiated, based on a parent indicator on the blockchain network, using a unique combination of indicator parameters;
instantiate a plurality of child comparators, wherein each child comparator integrates a combination of the plurality of child indicators and processes inputs comprising the indicator values from the combination of the plurality of child indicators to obtain output indicating whether a comparator condition is met, and each child comparator is instantiated, based on a parent comparator on the blockchain network, using a unique set of identifiers associated with the combination of the plurality of child indicators;
store, on the blockchain network, a data structure identifying a combination of the plurality of child comparators defining a trading bot
execute, by the trading bot and on the blockchain network, simulated trades according to predetermined trading rules that are based on the combination of the plurality of child comparators in the data structure and additional bot parameters; and
automatically update, by a keeper network on the blockchain network, the plurality of child indicators, the plurality of child comparators, and the trading bot, wherein the keeper network comprises dedicated keepers to access timing parameters of and periodically update respective ones of the plurality of child indicators, the plurality of child comparators, and the trading bot on the blockchain network, and wherein the keeper network is controlled by one or more off-chain scripts.
20. A non-transitory computer-readable medium that stores instructions that, when executed by one or more processors, cause the one or more processors to perform operations comprising causing one or more self-executing contracts deployed on a blockchain network to:
instantiate a plurality of child indicators, wherein each child indicator processes external asset data to obtain indicator values, and each child indicator is instantiated, based on a parent indicator on the blockchain network, using a unique combination of indicator parameters;
instantiate a plurality of child comparators, wherein each child comparator integrates a combination of the plurality of child indicators and processes inputs comprising the indicator values from the combination of the plurality of child indicators to obtain output indicating whether a comparator condition is met, and each child comparator is instantiated, based on a parent comparator on the blockchain network, using a unique set of identifiers associated with the combination of the plurality of child indicators;
store, on the blockchain network, a data structure identifying a combination of the plurality of child comparators defining a trading bot
execute, by the trading bot and on the blockchain network, simulated trades according to predetermined trading rules that are based on the combination of the plurality of child comparators in the data structure and additional bot parameters; and
automatically update, by a keeper network on the blockchain network, the plurality of child indicators, the plurality of child comparators, and the trading bot, wherein the keeper network comprises dedicated keepers to access timing parameters of and periodically update respective ones of the plurality of child indicators, the plurality of child comparators, and the trading bot on the blockchain network, and wherein the keeper network is controlled by one or more off-chain scripts.