HOW TO WORK

🧠 Objective:

Develop a BOT that monitors a trader’s wallet on GMX.io, detects when they open or close Long or Short positions, and automatically replicates those trades to the user’s wallet (copy trading).

✅ Step 1: Understand the Trading Mechanism on GMX

GMX is a decentralized perpetual exchange (perpetual DEX) that operates without an order book, relying instead on smart contracts.

• GMX uses the PositionRouter contract to open positions.

• All trader transactions can be tracked on Arbiscan or via RPC/WS nodes.

• Wallets typically interact with the PositionRouter contract to open and close positions.

✅ Step 2: Select the Trader to Monitor

• Identify a notable trader’s wallet (via communities, on-chain analysis, or tools like DeBank, Arkham, Lookonchain, etc.).

• Record the wallet address to be monitored.

✅ Step 3: Monitor Position Opening Transactions

Option 1: Use Arbiscan API (simpler but delayed)

• Query getInternalTransactionsByAddress or getLogs to check for interactions with the PositionRouter contract.

• Filter by the following function signatures:

  • createIncreasePosition

  • createDecreasePosition

  • executeIncreaseOrder

  • cancelIncreaseOrder

Option 2: Use Web3 WebSocket (real-time)

• Use Web3.py or ethers.js to connect to an Arbitrum WebSocket (WS) node.

• Subscribe to events emitted by the PositionRouter contract (such as order creation, cancellation, or execution).

✅ Step 4: Extract Trade Order Details

Once a position opening event (IncreasePosition) is detected, extract the following data:

• tokenIn: Token used for margin (e.g., USDC)

• indexToken: The asset being traded (e.g., ETH, BTC)

• isLong: True/False (indicating Long or Short)

• sizeDelta: Trade size in USD

• acceptablePrice: Target execution price

• executionFee: Gas fee

• leverage: Calculated from sizeDelta and collateralDelta

✅ Step 5: Copy the Trade to the User’s Wallet

• Send a similar order using the PositionRouter contract by calling createIncreasePosition(...) from the user’s wallet.

• Use Web3.py or ethers.js to interact with the contract, passing in the same parameters as the trader (optionally adjusted based on your own capital ratio).

✅ Step 6: Add Advanced Features

1. Dashboard:

   • Manage the list of trader wallets being monitored.

   • Display stats such as number of copied trades, total PnL, and remaining capital.

2. Telegram/Discord Notifications:

   • Alert when a new trade is opened.

   • Notify when the bot successfully copies a trade.

3. Auto Capital Scaling:

   • Example: If the trader uses 10,000 USDC to open a Long position, the bot can replicate it with 1,000 USDC (10%).

✅ Sample System Architecture

+-------------------+
|     User Wallet   |
+-------------------+
        ↑
        |
        | Copy
        ↓
+-------------------+     Monitor      +----------------------+
|     BOT Engine    | <----------------|   Trader Wallet(s)   |
|  (Python/Node.js) |                  |     on GMX.io        |
+--------+----------+                  +----------------------+
         |
         | Trigger
         ↓
+--------------------------+
|     PositionRouter SC    |
| (createIncreasePosition) |
+--------------------------+

✅ Resources Used

• GMX Contracts: https://github.com/gmx-io/gmx-contracts

• ABI of PositionRouter: Can be obtained from Arbiscan

• GMX Documentation: https://gmxio.gitbook.io/gmx/