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Maintained
AI/ML
Data Science
Aug 2023

AI-Powered Trading Bot

An advanced AI-driven stock trading bot leveraging FinBERT sentiment analysis, technical indicators, and sophisticated risk management for automated intelligent trading.

View Source
Sentiment + TA
Signals
Portfolio + position
Risk controls
Paper + live
Modes
Alpaca API
Broker
AI-Powered Trading Bot project visual

The constraint

Manual trading is emotional and time-consuming. Traders need systematic approaches that combine market sentiment with technical analysis while managing risk.

The approach

Built an automated trading system combining FinBERT sentiment analysis of financial news with technical indicators (SMA, RSI). Implemented strict risk management with portfolio-wide and position-level limits.

Architecture
Signals + risk engine feeding an execution layer.
High level
NewsReal-time headlinesMarket DataPrice + volumeSentimentFinBERT scoringIndicatorsSMA, RSI, etc.Risk EngineLimits + sizingExecutionAlpaca APIscorecomputesignalsfeaturesorders
Process
  1. 1
    Feature design

    Combined FinBERT news sentiment with technical indicators (SMA/RSI) to produce a single signal.

  2. 2
    Risk layer

    Implemented portfolio-wide and per-position limits to bound downside before any order is placed.

  3. 3
    Paper trading

    Validated the strategy against live data with no capital at risk before enabling execution.

  4. 4
    Execution + monitoring

    Wired the Alpaca API for order placement and logged fills, signals, and risk states for review.

Outcomes

  • Automated trading with sentiment + technical signals
  • Real-time and paper trading modes
  • Portfolio-wide risk management
  • Integration with Alpaca Trading API
What I'd do next
  • Add walk-forward backtesting with transaction costs and slippage modeled honestly.
  • Introduce regime detection so the strategy stands down in conditions it was not designed for.
  • Track live-vs-paper divergence as a first-class metric.
Details

Engineered an AI-powered trading bot that automates stock trading by analyzing market sentiment using FinBERT and integrating key technical indicators such as SMA and RSI. The bot employs strict risk management strategies, including portfolio-wide and individual position risk limits.

Integrated with the Alpaca Trading API, enabling real-time trading and paper trading for safe strategy testing before live deployment.

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