Authors :
Lawrence Chidiebere Nwodo; John Otozi Ugah; Stella Ebere Edeh; Maduabuchi Ignatius Edeh
Volume/Issue :
Volume 11 - 2026, Issue 8 - August
Google Scholar :
https://tinyurl.com/379ejxbn
Scribd :
https://tinyurl.com/3nxjswd8
DOI :
https://doi.org/10.38124/ijisrt/26aug236
Note : A published paper may take 4-5
working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and
ResearchGate.
Abstract :
The project developed and optimized an AI‑driven autonomous trading bot tailored to the unique dynamics of
cryptocurrency markets. The system would continuously in`gest live market feeds such as priceticks, order book snapshots,
and volume data alongside historical records and optional sentiment indicators from news and social media. A deep
reinforcement learning core would process this multi‑source input to generate real-time trade signals, dynamically balancing
profit maximization with risk controls such as adaptive stop loss and take profit thresholds. Orders would be executed
automatically via exchange APIs, with execution latency minimized to capture fleeting market opportunities. An
object‑oriented design would structure the system around key entities like theTrader, TradingBot Controller, MarketData
Module, RiskManager, OrderExecutor, PortfolioManager, and NotificationService modeled using UML class, sequence,
and flow diagrams to ensure clarity, modularity, and ease of future extension. Implementation would employ a modern
technology stack: a React.js and Tailwind CSS front end for trader configuration and performance dashboards; a Python
Flask back-end hosting TensorFlow and Scikit‑Learn models; PostgreSQL for time‑series and relational data; Docker
containers for reproducible development; Git for version control; and AWS for scalable deployment of microservices and
data storage. Comprehensive testing unit, integration, and load would validate system robustness, speed, and security. Upon
deployment, the bot is expected to deliver measurable improvements over traditional rule based strategies: higher
risk‑adjusted returns through precision trade entries, a reduction in draw downs via intelligent risk management, and sub
second execution to exploit high frequency opportunities. The intuitive dashboard and automated notifications would
empower both retail and institutional traders with transparent, actionable insights.
Keywords :
Automated Trading and Trading Bots, Artificial Intelligence and Mechine Learning in Trading, Data Source and Market Signals.
References :
- F. Sabry et al., “Cryptocurrencies and artificial intelligence: Challenges and opportunities,” IEEE Access, vol. 8, pp. 175840–175858, 2020. doi: 10.1109/ACCESS.2020.3037437
- P. Weichbroth et al., “Security of cryptocurrencies: A view on the state-of-the-art research and current developments,” Sensors, vol. 23, no. 6, p. 3155, 2023. doi: 10.3390/s23063155
- N. Majidi, M. Shamsi, and F. Marvasti, “Algorithmic trading using continuous action space deep reinforcement learning,” arXiv preprint arXiv:2210.03469, 2022.
- Z. Jiang, D. Xu, and J. Liang, “A deep reinforcement learning framework for the financial portfolio management problem,” arXiv preprint arXiv: 1706.10059, 2017. doi: 10.48550/arXiv.1706.10059
- V. Mnih et al., “Human-level control through deep reinforcement learning,” Nature, vol. 518, no. 7540, pp. 529–533, 2015. doi: 10.1038/nature14236
- R. S. Sutton and A. G. Barto, Reinforcement Learning: An Introduction, 2nd ed. Cambridge, MA, USA: MIT Press, 2018.
- R. Amirzadeh, A. Nazari, and D. Thiruvady, “Applying artificial intelligence in cryptocurrency markets: A survey,” Algorithms, vol. 15, no. 11, p. 428, 2022. doi: 10.3390/a15110428
- F. Liu et al., “Bitcoin transaction strategy construction based on deep reinforcement learning,” Appl. Soft Comput., vol. 113, p. 107952, 2021. doi: 10.1016/j.asoc.2021.107952
- E. P. Chan, Algorithmic Trading: Winning Strategies and Their Rationale. Hoboken, NJ, USA: Wiley, 2013.
- I. Goodfellow, Y. Bengio, and A. Courville, Deep Learning. Cambridge, MA, USA: MIT Press, 2016.
- A. Vassilev et al., Adversarial Machine Learning: A Taxonomy and Terminology of Attacks and Mitigations, NIST AI 100-2e2025, 2025. doi: 10.6028/NIST.AI.100-2e2025
- C. Wade, “Using generative AI and deep learning for financial markets forecasting,” M.S. thesis, London School of Economics, 2022. [Online]. Available: https://etheses.lse.ac.uk/4657/1/Wade_200622083.pdf
- S. Sun et al., “TradeMaster: A holistic quantitative trading platform empowered by reinforcement learning,” in Proc. 37th Conf. Neural Information Processing Systems (NeurIPS), 2023. [Online]. Available: https://proceedings.neurips.cc/paper_files/paper/2023/file/b8f6f7f2ba4137124ac976286eacb611-Paper-Datasets_and_Benchmarks.pdf
- Winston & Strawn LLP, “How to safely leverage AI in the digital assets industry,” 2024. [Online]. Available: https://www.winston.com/en/insights-news/how-to-safely-leverage-ai-in-the-digital-assets-industry
- X. H. Tay and S. M. Lim, “Deep reinforcement learning in cryptocurrency trading: A profitable approach,” J. Telecommunications Digital Economy, vol. 12, no. 3, pp.1-17, 2024.
- S. Singh, “AI in financial trading: A review of recent advancements,” Int. J. Financial Technology, vol. 5, no. 2, pp. 134–150, 2023.
The project developed and optimized an AI‑driven autonomous trading bot tailored to the unique dynamics of
cryptocurrency markets. The system would continuously in`gest live market feeds such as priceticks, order book snapshots,
and volume data alongside historical records and optional sentiment indicators from news and social media. A deep
reinforcement learning core would process this multi‑source input to generate real-time trade signals, dynamically balancing
profit maximization with risk controls such as adaptive stop loss and take profit thresholds. Orders would be executed
automatically via exchange APIs, with execution latency minimized to capture fleeting market opportunities. An
object‑oriented design would structure the system around key entities like theTrader, TradingBot Controller, MarketData
Module, RiskManager, OrderExecutor, PortfolioManager, and NotificationService modeled using UML class, sequence,
and flow diagrams to ensure clarity, modularity, and ease of future extension. Implementation would employ a modern
technology stack: a React.js and Tailwind CSS front end for trader configuration and performance dashboards; a Python
Flask back-end hosting TensorFlow and Scikit‑Learn models; PostgreSQL for time‑series and relational data; Docker
containers for reproducible development; Git for version control; and AWS for scalable deployment of microservices and
data storage. Comprehensive testing unit, integration, and load would validate system robustness, speed, and security. Upon
deployment, the bot is expected to deliver measurable improvements over traditional rule based strategies: higher
risk‑adjusted returns through precision trade entries, a reduction in draw downs via intelligent risk management, and sub
second execution to exploit high frequency opportunities. The intuitive dashboard and automated notifications would
empower both retail and institutional traders with transparent, actionable insights.
Keywords :
Automated Trading and Trading Bots, Artificial Intelligence and Mechine Learning in Trading, Data Source and Market Signals.