AI Crypto Trading Bot Setup — Step-by-Step Guide & Transcript

[00:00] Today I'm walking through a custom crypto trading bot I built around AI agents and designed with cloud code to monitor actively on the Ethereum network. I've explored plenty of how to make

[00:13] money online ideas and automated systems but this particular experiment has been one of the most interesting projects I've tested. The main reason this setup is approachable is that much of the

[00:25] underlying architecture was generated with artificial intelligence. That means you don't have to be an experienced software engineer to understand the basic workflow. I'll place a graphic on screen to make the transaction sequence easier to understand.

[00:41] This particular trading strategy focuses on identifying small price differences involving Ethereum-based token swaps. More specifically, the script monitors pending transactions across major decentralized exchanges.

[00:56] It listens to the public transaction queue to identify large incoming swap orders before they are confirmed. When the conditions match the program's criteria, the bot attempts to execute a three-part transaction sequence.

[01:10] It submits a buy transaction with a more competitive gas fee, attempts to place that transaction ahead of the target swap, and then submits a sell transaction immediately afterward if the market moves as expected.

[01:27] As AI agents become more capable, I've become increasingly interested in using automation to study advanced crypto trading strategies. But before we continue, it's important to clarify that this is an educational and informational demonstration.

[01:43] I'm not a financial advisor. I'm simply sharing my own experience with what I do. That's all. To begin, you need a Web3 wallet. I'm using Metamask. Most widely used wallets will work.

[01:56] As you can see mine is good to go Now let move on to the development platform I placed all the official resources in the description below The first step is creating a new workspace file.

[02:10] I'll give it a short one word name so it's easy to identify. Now here is the primary open source code. This will be in the description along with everything else.

[02:22] Because transparency matters, Prescript is open source. allows you to inspect it, run it through a security scanner, and use an AI validator or audit tool to better understand what each function is designed to do.

[02:36] I'll copy it by clicking here and paste it into the new file. You can see that the functions include inline comments explaining the main operations and execution flow.

[02:48] Now I'll navigate to this section. The new version here needs to match the version specified at the beginning of the script. I'll confirm that both versions are identical and then click here to continue.

[03:04] Once completion is complete, the next step is connecting the Web3 wallet. I'll open the Deployment tab, change the environment from the drop-down menu to the Wallet Connected option,

[03:16] and approve the connection request in the wallet pop-up. After the approval, the active wallet address appears on the interface here. I'll now click this button. This pushes the contract to the Ethereum network

[03:31] and requires a small network fee, usually around a dollar or two. After the transaction confirms, the trading bot control panel appears on the left.

[03:52] It has three straightforward functions, very easy to use. doing anything else I run a verification check Click here The creator address displayed here

[04:09] should match the address shown in the wallet extension. This confirms that I'm interacting with my deployed contract that I control. The next step is funding the trading bot. The ideal liquidity range is between 2 to 10 Ethereum. While

[04:25] While you can technically fund it outside this range, the return efficiency tends to drop off below 1 Ethereum and plateaus around 50 Ethereum. I wouldn't use this trading bot with less than 1 Ethereum.

[04:38] I'll copy the deployed contract address using this button. Next I'll go to the send section in my wallet, select Ethereum, paste in the bot's contract address enter the amount I'll be using which is going to be 2 Ethereum then

[04:59] confirm the transaction Once the block confirms, I can check the balance from the control panel.

[05:24] is now synchronized, so I'll activate the AI agent and approve the transaction.

[05:44] The agent is now monitoring pending transactions and collecting data from the Ethereum network. I'll let it operate in the background and return later to review the results.

[05:59] Alright I back I click the update button to retrieve the latest balance The dashboard is showing some nice positive activity but remember results depend on Ethereum congestion gas competition available liquidity execution speed exchange conditions and overall trading volume

[06:18] To get more useful performance data, I'll leave the trading bot on and running for a full, let's say, 24 hour period. I'll see you tomorrow.

[06:33] One full day has passed with the AI trading bot operating live on the network. I'll click this button again to review the activity and performance.

[06:45] Oh wow, look at that. I think the numbers speak for themselves. Absolutely amazing. The console displays routing splits, block numbers, gas information, and swap activity generated by the contract.

[06:58] Having access to those records gives you more visibility than relying on a closed source platform with no verifiable transaction history. To finish the demonstration, I'll click the Withdraw function to return the liquidity and profits.

[07:13] I'll approve the transaction and the wallet and wait for the network confirmation. There we go. Everything has been routed back to the wallet. Very nice results from this run.

[07:33] Before signing off, I should mention this video is for, again, educational and informational purposes only. I am not a financial advisor, as I said before, and nothing here should be considered financial advice.

[07:46] If you enjoyed this breakdown of the automated crypto trading system, leave a like and subscribe for more content about day trading, crypto markets, crypto news, AI automation, and make money online experiments.

[08:00] I'll see you in the next video.