Phemex Trading Bot in Python: AI Agent and Algorithmic Trading with LumiBot

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

Phemex at a glance

CCXT exchange id

phemex

Markets

Spot, Perpetual swaps

Testnet (sandbox)

Yes

Credentials

API key, API secret

Live data streams

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

CCXT request spacing

about 120.5 ms between requests

Official site

https://phemex.com

API docs

https://phemex-docs.github.io/#overview

Fees

https://phemex.com/fees-conditions

What is Phemex?

Phemex is a crypto exchange founded in 2019 that offers spot trading and perpetual futures. Phemex says more than 10 million traders use it.

Sign up for Phemex

  1. Create a Phemex account with an email address (or another sign-in method Phemex offers).

  2. Finish identity verification (KYC) and turn on two-factor authentication.

  3. For practice, also create a separate account on the Phemex testnet at https://testnet.phemex.com. Testnet keys only work on the testnet.

Open a Phemex account

Create a Phemex API key

  1. Log in and open API Management from your account menu (https://phemex.com/account/api-management).

  2. Click Create New API Key.

  3. Choose Default API entry. The High Rate Limit entry is meant for heavy, professional use.

  4. Enter a name and the IP address of the machine that will run your bot.

  5. Pick the permission level, click Confirm and enter the email verification code.

  6. Copy the key and secret right away. Phemex shows the key only once.

Which permissions to turn on: Use read and trade access. Leave withdrawals off. A bot never needs to move money out of your account.

Warning

Never turn on withdrawals for a Phemex trading bot key. Bind the key to your server’s IP address when Phemex lets you, keep the secret out of your code and out of Git, and delete the key if it ever leaks.

Connect Phemex to LumiBot

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

TRADING_BROKER=phemex
PHEMEX_API_KEY=your_apiKey
PHEMEX_API_SECRET=your_secret
PHEMEX_SANDBOX=true   # testnet; remove this line for your live account

LumiBot reads exactly the fields CCXT needs for Phemex (apiKey, secret). 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. The keys in the config are CCXT’s own credential names for Phemex:

import os

PHEMEX_CONFIG = {
    "exchange_id": "phemex",
    "apiKey": os.environ.get("PHEMEX_API_KEY"),
    "secret": os.environ.get("PHEMEX_API_SECRET"),
    "sandbox": True,  # testnet first; set False for your live account
}

from lumibot.brokers import Ccxt

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

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

Practice on the Phemex testnet

Phemex runs a full testnet at https://testnet.phemex.com with its own accounts and keys. Set PHEMEX_SANDBOX=true (or "sandbox": True in a code config) to send LumiBot requests there.

CCXT sends sandbox requests to: https://testnet-api.phemex.com/v1, https://testnet-api.phemex.com. Testnet and live accounts use different keys.

Algorithmic trading example: a simple Phemex bot

This bot buys about 50 USDT of bitcoin on Phemex once and then holds it. It is a starting point to check that your keys, balances and orders work.

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


class BuyBitcoinOnPhemex(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):
        btc = Asset("BTC", asset_type=Asset.AssetType.CRYPTO)
        if self.get_position(btc) is not None:
            return  # already holding BTC
        price = self.get_last_price(btc, quote=self.quote_asset)
        if price:
            quantity = round(50 / price, 6)  # about 50 USDT worth
            order = self.create_order(btc, quantity, "buy", quote=self.quote_asset)
            self.submit_order(order)


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

Agentic trading example: an AI agent that trades on Phemex

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 Phemex 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 which coins 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 PhemexAITrader(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 Phemex. You may trade BTC and ETH "
                "against USDT (asset_type 'crypto', quote_symbol 'USDT'), 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/USDT and ETH/USDT prices and your current holdings, "
                "then decide whether to buy, sell or hold."
            ),
            context={"exchange": "Phemex", "quote": "USDT", "date": self.get_datetime().isoformat()},
        )


if __name__ == "__main__":
    # LumiBot reads TRADING_BROKER and the keys from your .env file.
    strategy = PhemexAITrader(quote_asset=Asset("USDT", 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 Phemex through CCXT

Market

Listed by CCXT

Spot

Yes

Margin

No

Perpetual swaps

Yes

Dated futures

No

Options

No

CCXT lists these order features for Phemex: market orders, limit orders, stop orders, reduce-only 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.

Phemex tips

  • Phemex perpetual symbols use the full CCXT form, for example BTC/USDT:USDT (settled in USDT) or BTC/USD:BTC (inverse, settled in BTC). Spot is plain BTC/USDT.

  • Phemex also offers sub-accounts, and you can share one API key with sub-accounts from API Management. A separate sub-account per bot keeps bot trades apart from manual trades.

Frequently asked questions

Can I build a Phemex trading bot in Python?

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

Does Phemex have a testnet?

Yes. Set PHEMEX_SANDBOX=true and use keys from the Phemex testnet.

Which API permissions does a Phemex bot need?

Use read and trade access. Leave withdrawals off. A bot never needs to move money out of your account.

Can an AI agent trade on Phemex 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 Phemex 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 Phemex 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

Sources