TradeSync: Distributed Trading Platform

Trade your insights, shape the future.

A high-performance, real-time prediction trading platform built with modern microservices architecture. Users can buy and sell "YES" or "NO" contracts on future events, with prices dynamically adjusting based on market demand through an automated order matching engine.

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🎯 Project Overview

PredictTrade solves the problem of opaque and slow prediction markets by providing a transparent, high-performance, and real-time trading experience. Built for traders, market enthusiasts, and developers interested in high-frequency trading systems and modern web architecture.

Key Highlights

• Real-time Order Matching: Microsecond-level order processing and matching
• Microservices Architecture: Scalable, distributed system design
• Live Market Data: WebSocket-powered real-time price updates and order book streaming
• High Performance: Redis-based message queuing and pub/sub for low-latency communication
• Type-Safe Monorepo: Shared TypeScript types and packages across all services

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🚀 Features

Frontend Experience

• Intuitive Trading Interface: Modern Next.js application with real-time charts and order forms
• Live Market Data: Real-time price charts, order books, and trade history
• Secure Authentication: NextAuth.js with email verification
• Responsive Design: Built with Tailwind CSS and Shadcn UI components
• Real-time Updates: WebSocket connections for instant market data

Backend Capabilities

• RESTful API Gateway: Express.js server handling authentication and order validation
• Trading Engine: Core order matching system with price discovery algorithms
• WebSocket Service: Real-time data distribution to thousands of concurrent users
• Message Queuing: Redis-based asynchronous order processing
• Database Layer: PostgreSQL with TimescaleDB for time-series data

System Architecture

• Microservices Design: Separate services for trading, WebSocket, and API handling
• Horizontal Scalability: Redis pub/sub enables multi-instance deployments
• Fault Tolerance: Graceful shutdown procedures and health monitoring
• Type Safety: Shared TypeScript types across the entire system

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🏗️ Architecture

System Components

Client Layer

• Next.js frontend with real-time UI components
• WebSocket connections for live data streaming
• Form validation with React Hook Form and Zod

API Gateway

• Express.js server handling HTTP requests
• User authentication and session management
• Order validation and event management
• Queues trading orders to Redis for async processing

Trading Engine

• Core order matching algorithms
• In-memory order books for each market
• Real-time price discovery and trade execution
• Balance and contract management

WebSocket Service

• Manages thousands of concurrent connections
• Real-time market data distribution
• Subscription management for different data streams
• Health monitoring and graceful shutdowns

Message Broker (Redis)

• Order processing queues
• Pub/sub channels for real-time data
• Inter-service communication
• Caching and session storage

Database Layer

• PostgreSQL for persistent data storage
• TimescaleDB extension for time-series price data
• Prisma ORM for type-safe database access

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🛠️ Tech Stack

Frontend

• Next.js - React framework with SSR and API routes
• TypeScript - Type-safe JavaScript development
• Tailwind CSS - Utility-first styling framework
• Shadcn UI - Reusable component library
• Framer Motion - Animation library for smooth interactions
• Recharts - Data visualization for price charts
• NextAuth.js - Authentication and session management

Backend

• Node.js & Express.js - Server runtime and web framework
• TypeScript - End-to-end type safety
• WebSockets (ws) - Real-time bidirectional communication
• Redis - Message broker and caching layer
• PostgreSQL + TimescaleDB - Database with time-series optimization
• Prisma ORM - Type-safe database client

DevOps & Tools

• Turborepo - Monorepo build system with caching
• Docker & Docker Compose - Containerization and orchestration
• ESLint & Prettier - Code quality and formatting
• Winston - Structured logging
• Zod - Runtime type validation

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📁 Project Structure

.
├── apps/
│   ├── client/          # Next.js frontend application
│   └── server/          # Express.js API gateway
├── services/
│   ├── engine/          # Trading engine service
│   └── wss/             # WebSocket service
├── packages/
│   ├── db/              # Prisma ORM and database services
│   ├── ui/              # Shared React components
│   ├── types/           # Shared TypeScript types
│   ├── logger/          # Winston logging utility
│   ├── order-queue/     # Redis client and queue management
│   ├── zod-schema/      # Data validation schemas
│   ├── eslint-config/   # Shared ESLint configurations
│   └── typescript-config/ # Shared TypeScript configurations
└── docker-compose.yml   # Database and Redis containers

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🚦 Getting Started

Prerequisites

• Node.js (v18 or higher)
• npm (v10 or higher)
• Docker and Docker Compose

Installation

1. Clone the repository

   git clone <your-repo-url>
   cd predict-trade

2. Install dependencies

   npm install

3. Start Docker services

   docker-compose up -d

4. Setup environment variables

   Create .env files in the following directories:

   packages/db/.env

   DATABASE_URL="postgresql://dev:dev@localhost:5432/repo?schema=public"

   apps/client/.env

   NEXTAUTH_SECRET="your-nextauth-secret"
   NEXTAUTH_URL="http://localhost:3001"
   NEXT_PUBLIC_BACKEND_URL="http://localhost:3000"
   NEXT_PUBLIC_WSS_URL="ws://localhost:8080"
   SMTP_HOST="your-smtp-host"
   SMTP_PORT="587"
   SMTP_SECURE="true"
   SMTP_USER="your-smtp-user"
   SMTP_PASSWORD="your-smtp-password"
   FROM_EMAIL="your-from-email"

   apps/server/.env

   DATABASE_URL="your-postgre-url"
   REDIS_URL="redis://localhost:6379"
   SYNTHETIC_MARKET_MAKER_USER_ID="your-market-maker-id"

   services/wss/.env

   PORT=8080
   REDIS_URL="redis://localhost:6379"

5. Setup database

   npm run build --workspace=@repo/db
   npx prisma migrate dev --name init --schema packages/db/prisma/schema.prisma

6. Build and start all services

   npm run build
   npm run dev

Access the Application

• Frontend: http://localhost:3001
• API Gateway: http://localhost:3000
• WebSocket Service: ws://localhost:8080

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🔄 Data Flow

Trading Order Process

1. User places order → Client validates and sends to API Gateway
2. API Gateway → Validates order and pushes to Redis ORDER_QUEUE
3. Trading Engine → Processes order from queue, matches against order book
4. Order execution → Updates balances, creates trade records
5. Real-time updates → Engine publishes market data to Redis pub/sub
6. WebSocket Service → Receives updates and broadcasts to connected clients
7. Client receives → Real-time price and order book updates

Real-time Data Streaming

• Market Data: Price updates, order book depth, recent trades
• User Data: Balance updates, order status, trade confirmations
• System Data: Connection health, market summaries

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🗄️ Database Schema

Core Entities

• User: Authentication, profile, balance, and role information
• Event: Prediction markets with title, description, and status
• UserContract: User holdings of YES/NO contracts per event
• Trade: Individual trade transactions with buyer/seller details
• PriceHistory: Time-series price data for charting

Key Features

• TimescaleDB Integration: Optimized time-series queries for price history
• Type Safety: Prisma-generated types for all database operations
• Efficient Indexing: Optimized queries for real-time data access

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🔧 Development

Monorepo Commands

# Install dependencies
npm install

# Build all packages and apps
npm run build

# Start all services in development
npm run dev

# Lint all code
npm run lint

# Type checking
npm run type-check

# Database operations
npx prisma studio                    # Database GUI
npx prisma migrate dev               # Run migrations
npx prisma generate                  # Generate client

Individual Service Commands

# Run specific service
npm run dev --workspace=apps/client
npm run dev --workspace=services/engine
npm run dev --workspace=services/wss

# Build specific package
npm run build --workspace=@repo/db
npm run build --workspace=@trade/types

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🚀 Deployment

Production Considerations

• Environment Variables: Secure storage of API keys and database URLs
• Database Scaling: PostgreSQL read replicas and connection pooling
• Redis Clustering: Multi-node Redis setup for high availability
• Load Balancing: Multiple WebSocket service instances
• Monitoring: Application performance and error tracking

Docker Deployment

# Build production images
docker-compose -f docker-compose.prod.yml build

# Deploy services
docker-compose -f docker-compose.prod.yml up -d

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📊 Performance

System Capabilities

• Order Processing: ~1000 orders/second per engine instance
• WebSocket Connections: 10,000+ concurrent connections per WSS instance
• Database Queries: <10ms average response time for market data
• Real-time Latency: <50ms from order placement to client update

Scalability Features

• Horizontal Scaling: Multiple engine and WSS instances
• Database Optimization: Indexed queries and connection pooling
• Caching Strategy: Redis for frequently accessed data
• Async Processing: Non-blocking order queue processing

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🔒 Security

Implemented Measures

• Authentication: Secure session management with NextAuth.js
• Input Validation: Zod schemas for all API endpoints
• SQL Injection Prevention: Prisma ORM with parameterized queries
• Rate Limiting: Redis-based request throttling
• Error Handling: Sanitized error responses

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🤝 Contributing

We welcome contributions!

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📝 License

This project is licensed under the MIT License. See the LICENSE file for details.

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🙏 Acknowledgments

Built with modern web technologies and best practices in system design. Special thanks to the open-source community for the incredible tools and libraries that made this project possible.

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