Preparing to Launch Our First Bot on Binance

Before developing my own trading bot, I decided to test the built-in bots available on Binance. Unfortunately, they can’t be evaluated on historical data, and their logic is hidden. I wanted to configure a grid bot, but even that wasn’t possible with the available settings—specifically, the inability to prevent it from selling at a loss under any condition.

However, the main goal here is to learn trading mechanics while building the bot and ideally make a profit in the process.

Step 1: Environment Setup

We start by installing Python. I used version 3.13.3, which is one of the latest stable releases.

Then, I installed PyCharm IDE, specifically the free Community Edition, release 2025.1. There are plenty of tutorials online for both installations.

The entire setup took about 1 hour. I also recommend spending another hour exploring PyCharm’s features and learning Python syntax.

Step 2: Connecting to Binance Testnet

We’re using the Binance Testnet, which allows us to test without risking real funds.

Upon registration, you will receive:

  • API_KEY = XXX

  • API_SECRET = XXX

Step 3: Setting Up Telegram Notifications

I also created a Telegram bot to receive updates. You’ll need:

  • TELEGRAM_TOKEN = XXX

  • TELEGRAM_CHAT_ID = XXX

Once this is done, we're ready to write the bot.

Step 4: Grid Bot Strategy

I chose the LTC/USDT pair. My manual strategy was simple:

  • Sell at $80 and set a buy order at $78

  • Buy at $70 and set a sell order at $72

The bot automates this logic by:

  • Placing a grid of limit buy orders below the current price and limit sell orders above it

  • Updating order and trade information every minute

  • Sending status reports to Telegram

  • Running entirely on the Binance Testnet

Code Availability

The full bot script is available in the file WEEK001_POST002.PY. To run it successfully, you must:

  1. Set your own credentials:

API_KEY = '...'

API_SECRET = '...'

TELEGRAM_TOKEN = '...'

TELEGRAM_CHAT_ID = '...'

  1. Install required libraries:

pip install python-binance requests

What We Have So Far

We’ve built a real Grid Bot where you can:

  • Define your own pair:
    SYMBOL = 'LTCUSDT'

  • Configure grid parameters:
    GRID_SIZE = 5
    PRICE_STEP = 1
    QUANTITY = 0.1

You can now monitor results without risking real funds, fine-tune parameters, and test strategies in a safe environment.

Next up: downloading historical data and backtesting the strategy over an extended period—because nobody wants to wait a whole month for a testnet bot to run in real time.