Using Reddit Sentiment to Guide Cryptocurrency Trading
Summary
This guide explains how to connect OctoBot to Reddit and configure it to monitor selected subreddits for traded cryptocurrencies. When its forum evaluator is enabled, the bot analyzes post sentiment with VADER and produces a coin-level summary for use by a daily trading mode. The described workflow is sentiment-based: community posts are processed into an input that may inform automated trading. The guide is about setup and configuration rather than presenting a tested trading strategy.
It outlines creating a Reddit script application, adding its client credentials to the bot, and choosing which subreddits to follow for each cryptocurrency. It provides no evidence that Reddit sentiment predicts returns, and does not specify signal thresholds, position sizing, execution rules, or how the sentiment summary affects trades. The approach therefore depends on the quality and representativeness of selected communities and on how the downstream trading mode uses the evaluator. Those performance questions are left unanswered.
Key ideas
- OctoBot can monitor configured Reddit communities associated with traded cryptocurrencies.
- Its forum evaluator applies VADER sentiment analysis and creates coin-level summaries for a daily trading mode.
- Using the integration requires a Reddit script application and its credentials in the bot configuration.
- The guide covers connectivity and setup, but does not evaluate predictive value or trading performance.
Tags
Full text
# Trading based on Reddit posts
---
title: "Reddit"
description: "Learn how to configure your OctoBot to trade using Reddit and watch subreddits to trade according to the Reddit posts."
sidebar_position: 5
---
# Trading based on Reddit posts
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OctoBot can connect to <a href="https://www.reddit.com" rel="nofollow">Reddit</a> to monitor Reddit posts from subreddits.
When the **RedditForumEvaluator** is enabled, OctoBot will the use <a href="https://github.com/cjhutto/vaderSentiment" rel="nofollow">VADER Sentiment Analysis's AI</a> to analyse the sentiment of each post and make a summary of each coin to be used by the [Daily Trading Mode](/guides/octobot-trading-modes/daily-trading-mode).
## RedditForumEvaluator configuration
In the Accounts tab of the web interface, add the `Reddit` interface if missing.
Configure the **RedditForumEvaluator** to specify the subreddits to follow for each traded Cryptocurrency.
## Reddit connection configuration
To connect to Reddit, OctoBot needs a Reddit script app, which you can create from your Reddit account, or a new account dedicated to OctoBot.
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1. Login on your Reddit account if you already have one
2. Go to your account's <a href="https://www.reddit.com/prefs/apps/" rel="nofollow">Applications preferences</a>.
3. Create a new `script` app
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- `Name` and `description` can be set as you wish
- Leave `About URL` empty
- `Redirect URI` won't be used, enter `https://www.reddit.com/` (or any other valid url)
- Create your app
3. **Client-Id** is the list of characters under your App name, next to its icon
4. **Client-Secret** is the **secret** identifier of the App
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Copy and paste your new Reddit app details into your OctoBot configuration.
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### Configuration from user/config.json
Add in **user/config.json** in the services key :
```json
"reddit": {
"client-id": "YOUR_CLIENT_ID",
"client-secret": "YOUR_CLIENT_SECRET"
}
```
**Exemple:**
```json
"services": {
"a service": {
},
"reddit": {
"client-id": "YOUR_CLIENT_ID",
"client-secret": "YOUR_CLIENT_SECRET"
},
"another service": {
}
}
```Shown in full with attribution under the source's licence. Licence: GPL-3.0
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.