Trading Bot Server

A high-performance Model Context Protocol (MCP) server for cryptocurrency trading automation, built with Bun. This project provides real-time market data gathering, technical analysis, and automated trade execution capabilities for multiple cryptocurrency assets.

Table of Contents

• Features
• Prerequisites
• Installation
• Configuration
• Running the Server
• Debug Mode with Inspector
• API Reference
• Usage Examples
• Architecture
• Performance
• Troubleshooting

Features

• Real-time Market Data: Fetch live market prices and historical data for cryptocurrency assets
• Technical Analysis: Compute technical indicators (RSI, MACD, Bollinger Bands, etc.) across multiple timeframes
• Automated Trading: Execute LONG, SHORT, HOLD, and CLOSE_ALL trading actions with configurable confidence levels
• Multi-Asset Support: Trade across BTC, ETH, SOL, and HYPE (extensible to other symbols)
• Position Tracking: Monitor and retrieve open trading positions
• LLM Integration: Leverage AI models for intelligent trade analysis and decision-making
• High Performance: Built on Bun runtime for 3x faster performance than Node.js

Prerequisites

Required

• Bun v1.3.1 or higher - Install Bun
• Private API Key - Required for accessing trading and market data APIs (see Configuration)
• Node.js compatibility - Bun provides 100% Node.js API compatibility

Optional

• MCP Inspector - For debugging and monitoring server behavior
• API credentials - For your trading platform (Binance, Kraken, etc.)

Installation

Step 1: Clone or Create Project

# If starting fresh
bun init trading-bot-server
cd trading-bot-server

# Or clone existing project
git clone <your-repo-url>
cd trading-bot-server

Step 2: Install Dependencies

bun install

This will install all dependencies defined in your package.json, including:

• MCP protocol dependencies
• Market data clients
• Trading execution libraries
• Analysis tools

Configuration

Setting Up Environment Variables

Create a .env file in the project root directory with the following required variables:

# CRITICAL: Required for all operations
PRIVATE_API_KEY=your_private_api_key_here
EXCHANGE_API_KEY=your_exchange_api_key
EXCHANGE_SECRET_KEY=your_exchange_secret_key

# Optional: Server Configuration
SERVER_PORT=3000
LOG_LEVEL=info
TRADING_MODE=simulation

Obtaining Your Private API Key

1. Log in to your trading platform account
2. Navigate to Settings → API Management or Security
3. Create a new API key with the following permissions:
   • Read market data ✓
   • Read account balance ✓
   • Create orders ✓
   • Cancel orders ✓
4. Copy the private key and add it to your .env file
5. Secure your key - Never commit .env to version control

Environment Safety

Always add .env to your .gitignore:

echo ".env" >> .gitignore
echo ".env.local" >> .gitignore
echo "*.key" >> .gitignore

Running the Server

Basic Execution

bun run server.ts

The server will start on the default port and begin listening for MCP protocol connections.

Running with Custom Configuration

# Run with specific environment file
export $(cat .env.production | xargs)
bun run server.ts

# Run in development mode with hot reload
bun run --watch server.ts

# Run with increased memory allocation
bun run --smol server.ts

Verifying Server Status

Once started, you should see output similar to:

✓ Trading Bot Server initialized
✓ Market data provider connected
✓ MCP server listening on port 3000
✓ Ready for connections

Debug Mode with Inspector

Using MCP Inspector for Debugging

The MCP Inspector provides a visual interface for debugging and testing your MCP server. This is invaluable for:

• Testing tool function calls
• Inspecting server responses
• Debugging trade execution logic
• Monitoring real-time data flows

Installation

# Install MCP Inspector globally
npm install -g @modelcontextprotocol/inspector
# or
bun add -g @modelcontextprotocol/inspector

Running with Inspector

# Method 1: Using bunx (Bun's package runner)
bunx @modelcontextprotocol/inspector bun server.ts

# Method 2: Using installed inspector
mcp-inspector bun server.ts

# Method 3: Direct execution with inspector output
bun run --inspect server.ts

Inspector Interface

Once running, the inspector will provide:

1. Tool Browser - View all available tools and their parameters
2. Request/Response Viewer - See real-time API calls and responses
3. Error Tracking - Monitor and debug errors as they occur
4. Performance Metrics - View execution times and resource usage

Example Inspector Workflow

# 1. Start inspector
bunx @modelcontextprotocol/inspector bun server.ts

# 2. Open browser to localhost:3000 (inspector UI)

# 3. Test market data retrieval
# - Select "get_market_data" tool
# - Input: {"symbol": "BTC"}
# - View response in real-time

# 4. Test trade execution
# - Select "execute_trade" tool
# - Input: {"symbol": "BTC", "action": "LONG", "quantity": 1, "confidence": 0.85}
# - Monitor execution and response

API Reference

Available Tools

1. get_market_data

Retrieves current market price and data for a specified cryptocurrency symbol.

Parameters:

• symbol (string, required): Trading symbol - BTC, ETH, SOL, or HYPE

Response:

{
  "symbol": "BTC",
  "price": 45250.50,
  "change24h": 2.35,
  "volume": 28450000000,
  "timestamp": 1698825600000
}

2. get_technical_indicators

Computes technical analysis indicators for a specified timeframe and symbol.

Parameters:

• symbol (string, required): Trading symbol
• period (string, required): Time period - 5m (5-minute) or 4h (4-hour)

Response:

{
  "symbol": "BTC",
  "period": "5m",
  "rsi": 65.42,
  "macd": 245.30,
  "bollingerBands": {
    "upper": 46000,
    "middle": 45250,
    "lower": 44500
  }
}

3. get_open_positions

Retrieves all currently open trading positions.

Response:

{
  "positions": [
    {
      "symbol": "BTC",
      "side": "LONG",
      "quantity": 0.5,
      "entryPrice": 44000,
      "currentPrice": 45250.50,
      "pnl": 625.25,
      "pnlPercent": 1.42
    }
  ]
}

4. execute_trade

Executes a trading action with specified parameters and confidence level.

Parameters:

• symbol (string, required): Trading symbol
• action (string, required): Trade action - LONG, SHORT, HOLD, or CLOSE_ALL
• quantity (number, required): Trade quantity in base currency
• confidence (number, required): Confidence level (0.0 - 1.0)
• reasoning (string, required): Explanation for the trade decision

Response:

{
  "status": "executed",
  "orderId": "ORD_1698825650_BTC",
  "symbol": "BTC",
  "action": "LONG",
  "quantity": 0.5,
  "executionPrice": 45250.50,
  "timestamp": 1698825650000
}

5. request_ai_trading_bot

Sends a request to the AI trading bot MCP server to gather data, analyze markets, and execute trades autonomously.

Parameters:

• symbol (string, required): Trading symbol to analyze

Response:

{
  "status": "processing",
  "analysis": {
    "trend": "bullish",
    "strength": 0.85,
    "recommendation": "LONG"
  },
  "tradeExecuted": true,
  "orderId": "ORD_1698825650_BTC"
}

Usage Examples

Example 1: Fetching Market Data

// Get current BTC price and market data
const response = await server.tools.get_market_data({
  symbol: "BTC"
});

console.log(`BTC Price: $${response.price}`);
console.log(`24h Change: ${response.change24h}%`);

Example 2: Analyzing Technical Indicators

// Get 5-minute technical indicators for ETH
const indicators = await server.tools.get_technical_indicators({
  symbol: "ETH",
  period: "5m"
});

console.log(`RSI: ${indicators.rsi}`);
console.log(`Bollinger Bands Upper: ${indicators.bollingerBands.upper}`);

Example 3: Executing a Trade

// Execute a LONG trade on SOL
const tradeResult = await server.tools.execute_trade({
  symbol: "SOL",
  action: "LONG",
  quantity: 10,
  confidence: 0.75,
  reasoning: "Strong bullish signal from RSI crossover"
});

console.log(`Order ID: ${tradeResult.orderId}`);
console.log(`Status: ${tradeResult.status}`);

Example 4: Checking Open Positions

// Get all open positions
const positions = await server.tools.get_open_positions();

positions.forEach(position => {
  console.log(`${position.symbol}: ${position.side} ${position.quantity}`);
  console.log(`P&L: $${position.pnl} (${position.pnlPercent}%)`);
});

Example 5: Autonomous Trading with AI Bot

// Request AI bot to analyze and trade HYPE
const aiTrade = await server.tools.request_ai_trading_bot({
  symbol: "HYPE"
});

console.log(`Analysis: ${aiTrade.analysis.trend}`);
console.log(`Trade Executed: ${aiTrade.tradeExecuted}`);

Component Details

| Component | Purpose | Technology | |-----------|---------|------------| | MCP Protocol Handler | Manages client connections | @modelcontextprotocol/sdk | | Market Data Service | Fetches real-time prices | REST APIs + WebSocket | | Technical Analysis | Calculates indicators | Custom TA library | | Trade Executor | Submits orders to exchange | Exchange API SDK | | Position Manager | Tracks active trades | Database/In-memory store | | AI/LLM Integration | Autonomous analysis | External LLM API |

Performance

Bun Runtime Advantages

Bun provides significant performance improvements over Node.js:

| Metric | Node.js | Bun | Improvement | |--------|---------|-----|-------------| | Package Install | 45s | 8s | 5.6x faster | | TypeScript Compilation | 2.3s | 0.1s | 23x faster | | HTTP Throughput | 19,039 req/s | 59,026 req/s | 3.1x faster | | WebSocket Messages | 435,099 msg/s | 2,536,227 msg/s | 5.8x faster | | Database Queries | 14,522 q/s | 28,571 q/s | 1.97x faster |

Optimization Tips

1. Use Bun's built-in bundler for faster builds
2. Enable caching for market data queries
3. Batch trade operations to reduce API calls
4. Implement rate limiting to respect exchange limits
5. Monitor memory usage with bun run --smol for constrained environments

Troubleshooting

Issue: "PRIVATE_API_KEY not found"

Solution:

# Verify .env file exists in project root
ls -la .env

# Verify variable is set
grep PRIVATE_API_KEY .env

# Reload environment
source .env
bun run server.ts

Issue: "Connection refused" on port 3000

Solution:

# Check if port is already in use
lsof -i :3000

# Kill existing process
kill -9 <PID>

# Run on different port
PORT=3001 bun run server.ts

Issue: Inspector not starting

Solution:

# Update inspector to latest version
bun add -g @modelcontextprotocol/inspector@latest

# Try direct inspector command
mcp-inspector --help

# Alternative: Use Bun's built-in debugger
bun run --inspect-brk server.ts

Issue: API Key authentication failure

Solution:

# Verify API key format and encoding
echo $PRIVATE_API_KEY | wc -c

# Test API key with direct request
curl -H "Authorization: Bearer $PRIVATE_API_KEY" \
  https://api.example.com/account

# Check for whitespace issues
PRIVATE_API_KEY=$(echo $PRIVATE_API_KEY | xargs)

Issue: High memory usage

Solution:

# Run with memory constraints
bun run --smol server.ts

# Monitor memory
ps aux | grep server.ts

# Implement position cleanup
# Add periodic garbage collection
setInterval(() => {
  if (global.gc) global.gc();
}, 60000);

Issue: Market data API rate limiting

Solution:

# Implement exponential backoff
# Add request queuing
# Reduce polling frequency
# Consider upgrading API subscription tier

Development Workflow

Hot Reload Development

bun run --watch server.ts

Running Tests

bun test

Building for Production

bun build --target bun server.ts --outfile dist/server.js

Docker Deployment

FROM oven/bun:latest

WORKDIR /app

COPY package.json bun.lockb ./
RUN bun install --frozen-lockfile

COPY server.ts .
ENV NODE_ENV=production

EXPOSE 3000

CMD ["bun", "run", "server.ts"]

Security Best Practices

1. Never commit .env file containing API keys
2. Use environment-specific secrets for production
3. Implement rate limiting to prevent abuse
4. Validate all inputs from external sources
5. Use HTTPS in production deployments
6. Rotate API keys regularly
7. Monitor suspicious activity on trading accounts
8. Implement request signing for trade execution

Contributing

To contribute to this project:

1. Create a feature branch
2. Make your changes
3. Test thoroughly with the inspector
4. Submit a pull request

License

[Add your license here]

Support

For issues, questions, or feature requests:

• GitHub Issues: Create an issue in the repository
• Documentation: Check the docs folder
• Debugging: Use bunx @modelcontextprotocol/inspector bun server.ts

Additional Resources

• Bun Documentation
• MCP Protocol Specification
• Trading Strategy Guide
• API Integration Examples
• Performance Tuning Guide