Paradex Trading Bot in Python

This guide shows how to build a Paradex trading bot in Python with LumiBot, for both AI agent trading and algorithmic trading. LumiBot connects to Paradex through CCXT, the open source library that talks to more than 100 crypto exchanges. You will create a Paradex account and API wallet, connect it, and run two examples: a simple algorithmic trading bot and an agentic trading bot where an AI agent makes the calls.

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Paradex at a glance

CCXT exchange id

paradex

Markets

Spot, Perpetual swaps

Testnet (sandbox)

Yes

Credentials

private key, wallet address

Live data streams

prices, order book, trades, your orders, your balance, your positions

CCXT request spacing

about 50 ms between requests

Official site

https://www.paradex.trade/

API docs

https://docs.api.testnet.paradex.trade/

Fees

https://docs.paradex.trade/getting-started/trading-fees

What is Paradex?

Paradex is a trading venue that runs on its own appchain on Starknet. It says you can trade perps, options and spot from one account with zero fees.

Sign up for Paradex

  1. Open https://app.paradex.trade and click Connect Wallet. Choose your Ethereum wallet, such as MetaMask.

  2. Sign the request that creates your Paradex (L2) key. The first time, Paradex asks you to sign twice.

  3. For practice, use the testnet at https://app.testnet.paradex.trade. It runs on Sepolia and credits each new account with $1,000,000 of test USDC.

Open a Paradex account

Set up a Paradex API wallet

  1. Make a new Ethereum wallet just for the bot, and connect it to Paradex as above.

  2. Set PARADEX_WALLET_ADDRESS to that wallet’s Ethereum address.

  3. Set PARADEX_PRIVATE_KEY to that wallet’s private key. CCXT signs with it to find your Paradex account and log in.

  4. Fund only what the bot will trade.

  5. Safer option: Paradex subkeys (Key Management, Subkeys, + Add New Key) can trade but cannot withdraw. Set PARADEX_L2_PRIVATE_KEY to the subkey’s private key and PARADEX_L2_ADDRESS to your Paradex account address, and leave PARADEX_PRIVATE_KEY unset. LumiBot then hands CCXT the subkey directly, so the wallet’s private key never reaches the bot. LumiBot has not yet run this setup against a live Paradex account, so test it with a small amount first.

Which permissions to turn on: Paradex subkeys can place, cancel and change orders but cannot withdraw or transfer. However, CCXT logs in with the wallet’s private key, and that key has full control, including withdrawals. Use a separate wallet that holds only the bot’s funds, and never reuse your main wallet’s key.

Warning

A Paradex private key is as powerful as the money it controls. Use a separate wallet or API wallet that holds only what you want the bot to trade, keep the key out of your code and out of Git, and move your funds if the key ever leaks.

Connect Paradex to LumiBot

The simplest way: put these lines in a .env file next to your strategy. LumiBot loads the file, sees TRADING_BROKER=paradex and connects to Paradex for you, so your strategy needs no broker code.

TRADING_BROKER=paradex
PARADEX_PRIVATE_KEY=your_privateKey
PARADEX_WALLET_ADDRESS=your_walletAddress
PARADEX_SANDBOX=true   # testnet; remove this line for your live account

LumiBot reads exactly the fields CCXT needs for Paradex (privateKey, walletAddress). If one is missing, LumiBot stops at start-up and names the variable you still need.

You can also build the broker in code. This is handy when one script talks to more than one exchange, or when you need extra CCXT options. The keys in the config are CCXT’s own credential names for Paradex:

import os

PARADEX_CONFIG = {
    "exchange_id": "paradex",
    "privateKey": os.environ.get("PARADEX_PRIVATE_KEY"),
    "walletAddress": os.environ.get("PARADEX_WALLET_ADDRESS"),
    "sandbox": True,  # testnet first; set False for your live account
}

from lumibot.brokers import Ccxt

broker = Ccxt(PARADEX_CONFIG)
# then: MyStrategy(broker=broker, ...)

Either way, LumiBot turns on CCXT’s built-in rate limiting for you.

Practice on the Paradex testnet

Paradex runs a testnet at https://app.testnet.paradex.trade on Ethereum’s Sepolia network, with free test USDC. Set PARADEX_SANDBOX=true (or "sandbox": True in a code config) to use it. Testnet accounts cannot be reset; make a sub-account or a new wallet to get more test funds.

CCXT sends sandbox requests to: https://api.testnet.paradex.trade/v1, https://api.testnet.paradex.trade/v2. Testnet and live accounts use different keys.

Algorithmic trading example: a simple Paradex bot

This bot buys about 50 USDC of BTC on Paradex once and then holds it. It is a starting point to check that your keys, balances and orders work. If the exchange’s minimum order is larger, raise the amount. Paradex accepts only limit orders through CCXT, so the example places a limit order just above the last price.

from lumibot.entities import Asset
from lumibot.strategies import Strategy


class ParadexBuyOnce(Strategy):
    """Buy a small amount of BTC once, then hold it."""

    def initialize(self):
        self.sleeptime = "1H"
        self.set_market("24/7")  # crypto trades all day, every day

    def on_trading_iteration(self):
        coin = Asset("BTC", asset_type=Asset.AssetType.CRYPTO)
        if self.get_position(coin) is not None:
            return  # already holding BTC
        price = self.get_last_price(coin, quote=self.quote_asset)
        if price:
            quantity = round(50 / price, 6)  # about 50 USDC worth
            # This exchange takes only limit orders through CCXT.
            order = self.create_order(coin, quantity, "buy", limit_price=price * 1.002, quote=self.quote_asset)
            self.submit_order(order)


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = ParadexBuyOnce(quote_asset=Asset("USDC", asset_type=Asset.AssetType.CRYPTO))
    strategy.run_live()

Agentic trading example: an AI agent that trades on Paradex

Agentic trading means an AI agent reads the market and decides what to do. In this example one LumiBot agent looks at prices and your Paradex account, then places the orders itself. There is no Python logic in between: you set the rules in plain English in the prompt, such as what it may trade and how big each order can be. This follows the same pattern as LumiBot’s AI trading team examples.

from lumibot.entities import Asset
from lumibot.strategies import Strategy


class ParadexAITrader(Strategy):
    """One AI agent researches the market and places the trades itself."""

    def initialize(self):
        self.sleeptime = "4H"
        self.set_market("24/7")
        self.agents.create(
            name="trader",
            model="openai/gpt-6-luna",
            reasoning_effort="high",
            allow_trading=True,
            system_prompt=(
                "You manage a small crypto account on Paradex. "
                "You may trade BTC and ETH against USDC (asset_type 'crypto', quote_symbol 'USDC'), or hold cash. "
                "Before every order, call account_portfolio, account_positions and "
                "market_last_price for that exact symbol in the same run. "
                "Keep each order under 10% of the account value. "
                "Explain each decision in one short paragraph."
            ),
        )

    def on_trading_iteration(self):
        self.agents["trader"].run(
            task_prompt="Review recent BTC/USDC and ETH/USDC prices and your current holdings, then decide whether to buy, sell or hold.",
            context={"exchange": "Paradex", "quote": "USDC", "date": self.get_datetime().isoformat()},
        )


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = ParadexAITrader(quote_asset=Asset("USDC", asset_type=Asset.AssetType.CRYPTO))
    strategy.run_live()

The agent needs a model key such as OPENAI_API_KEY in your environment. See the AI agents quickstart for models, tools and memory.

What you can trade on Paradex

Market

Listed by CCXT

Spot

Yes

Margin

No

Perpetual swaps

Yes

Dated futures

No

Options

No

CCXT lists these order features for Paradex: stop orders, editing open orders, canceling orders.

For perpetual contracts, use the full CCXT symbol so the settlement currency is clear, for example BTC/USDT:USDT. See the CCXT guide for contract quantities, position modes and leverage.

Perpetual futures example on Paradex

Paradex also lists perpetual swaps. This bot opens one small long position in BTC/USD:USDC worth about 50 USDC and then holds it. LumiBot treats a perpetual as asset_type="crypto_future" and sizes it in contracts, the same model as LumiBot’s Bitunix futures broker. Contract symbols can differ by exchange, so check the symbol in self.broker.api.markets before going live. In hedge mode, add position_side="long" to create_order. Paradex accepts only limit orders through CCXT, so the example places a limit order just above the last price.

from lumibot.entities import Asset
from lumibot.strategies import Strategy


class ParadexOpenOneLong(Strategy):
    """Open one small long BTC perpetual position, then hold it."""

    def initialize(self):
        self.sleeptime = "1H"
        self.set_market("24/7")  # crypto trades all day, every day

    def on_trading_iteration(self):
        # The full CCXT symbol keeps the settlement currency clear.
        contract = self.broker.get_asset("BTC/USD:USDC")
        if self.get_position(contract) is not None:
            return  # already holding the position
        price = self.get_last_price(contract)
        if price:
            # Each contract covers contract.multiplier BTC; size the order to about 50 USDC.
            quantity = round(50 / (price * contract.multiplier), 6)
            # This exchange takes only limit orders through CCXT.
            order = self.create_order(contract, quantity, "buy", limit_price=price * 1.002)
            self.submit_order(order)


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = ParadexOpenOneLong(quote_asset=Asset("USDC", asset_type=Asset.AssetType.CRYPTO))
    strategy.run_live()

Fees and partner IDs on Paradex

You pay Paradex’s normal trading fees. CCXT, the library underneath, normally tags Paradex orders with its own partner ID. LumiBot removes that tag. LumiBot may attach its own exchange partner ID instead. That costs you nothing extra. LumiBot never adds an extra builder fee unless one is turned on, and it logs a warning when one is.

Paradex tips

  • CCXT 4.5.91 lists spot, perpetuals and options for Paradex. The BTC perpetual is BTC/USD:USDC, settled in USDC; use its full symbol to distinguish it from spot.

  • Paradex login tokens (JWTs) expire every 5 minutes. CCXT gets new ones for you.

  • Paradex supports sub-accounts. A separate sub-account per bot keeps bot trades apart from manual trades.

Frequently asked questions

Can I build a Paradex trading bot in Python?

Yes. Install LumiBot (pip install lumibot), set your Paradex keys and use the paradex CCXT exchange id as shown above.

Does Paradex have a testnet?

Yes. Set PARADEX_SANDBOX=true and use keys from the Paradex testnet.

Which keys does a Paradex bot need?

Paradex subkeys can place, cancel and change orders but cannot withdraw or transfer. However, CCXT logs in with the wallet’s private key, and that key has full control, including withdrawals. Use a separate wallet that holds only the bot’s funds, and never reuse your main wallet’s key.

Can an AI agent trade on Paradex by itself?

Yes. The agentic example above gives one agent permission to trade. You control what it may trade and how much through its prompt.

Can I trade Paradex perpetual futures with LumiBot?

CCXT lists perpetual swaps for this exchange. Use the full contract symbol, such as BTC/USDT:USDT.

Is LumiBot free?

Yes. LumiBot is open source on GitHub at https://github.com/Lumiwealth/lumibot. You pay only your exchange’s trading fees and, for AI agents, your model provider.

Run it in the cloud with BotSpot

Do not want to keep a computer running for your Paradex bot? BotSpot is the hosted home for LumiBot strategies and AI trading agents: build with AI, backtest, connect a broker, and watch every trade with logs and alerts.

Try BotSpot

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