Paradex Delta Hedge Bot (v0.8)

A lightweight, production-ready delta-hedging bot for Paradex PERP options, built on top of the official paradex_py SDK.

This tool is designed for traders who need:

• automated delta-neutral hedging for PERP option books,
• fast IV estimation (BS inversion),
• real-time Greeks,
• clean execution via taker IOC orders,
• a simple CLI interface,
• error logging,
• zero coding skills required.

The bot supports both Black-Scholes and Bachelier delta models.

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🚀 Features

✔ Automated Delta Hedging

• Calculates portfolio delta across all PERP and PERP_OPTION positions.
• Computes per-contract signed delta for each position.
• Places taker IOC orders on the underlying PERP market to neutralize delta.

✔ Two Delta Models

• Black–Scholes (lognormal)
• Bachelier (normal model)

User can select the model at runtime.

✔ IV Extraction

• Computes implied volatility from mid-price via bisection BS inversion.

✔ Intelligent Execution

• Normalizes order size to Paradex step size (0.0001)
• Uses aggressive IOC limit orders
• Automatically determines hedging direction (buy/sell)

✔ Full Logging

• Every decision, market value, Greek, order, and error is logged.
• Logs are written both to terminal and stealth_delta_bot.log.

✔ Safe Mode (DRY_RUN)

Optional simulation mode (no orders will be sent).

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📦 Requirements

• Python 3.10+
• paradex_py SDK

Install:

pip install paradex-py


🛠 Configuration

Before running the bot, you must export two environment variables:

export PARADEX_SUBKEY_PRIVATE_KEY=0xYOUR_PRIVATE_KEY
export PARADEX_ACCOUNT_ADDRESS=0xYOUR_PARACLEAR_ADDRESS

To check they are set:

echo $PARADEX_SUBKEY_PRIVATE_KEY
echo $PARADEX_ACCOUNT_ADDRESS

▶ Running the Bot

From your project directory:
delta_bot.py


The bot will ask:

Base asset (ETH/BTC)

Hedge market (ETH-USD-PERP or BTC-USD-PERP)

Delta model (BS / BACHELIER)

Target delta (default 0)

Delta band (dead-zone for noise filtering)

Example:

Base asset [ETH]:
Hedge market [ETH-USD-PERP]:
Delta model [BACHELIER]:
Target delta [0.0]:
Delta band [0.0]:

Then the bot runs continuously and hedges every 20 seconds.

🧩 File Structure
paradex-delta-bot/
│── bot.py                # main bot file (v0.8)
│── README.md             # this file
│── stealth_delta_bot.log # auto-created on first run

🧪 Simulation Mode (Dry Run)
Set:
DRY_RUN = True

Bot will:

calculate everything,

log everything,

NOT place orders.

🤝 Intended Audience

This bot is suitable for:

Paradex users trading PERP options

Market-makers

Structure product desks

Hedging desks

Prop trading teams

Retail traders needing delta-neutrality

Can be offered “as-is” directly to Paradex community.

🛡 Disclaimer

This bot executes real trades.
Use at your own risk.
The authors do not accept any responsibility for losses.

📧 Contact

For questions, integrations, or commercial use:

(Tradingdesk26@gmail.com)