Cryptocurrency Trading Bots: A Rating Guide

 “I have tried bot trading experience and it is quite effective, my account has increased more than 25% in a short time and it executed a series of orders in a day. But the bad thing is, if the market has any news fluctuations, the trading bot will not handle it promptly and make bad orders repeatedly. Means we need to fix the bot constantly so it can work better and it takes more time. In my opinion, we should trade with ourselves and our knowledge, it is definitely an interesting game”

DrLucacks, BitcoinTalk User

That pretty much summarizes the experience of most people and the reality on ground, as far as bot trading is concerned. If you’ve been wondering how you should execute your trades with a crypto trading bot, this article would show you everything you need to know about bots, what to expect from them and how best they’re used. This is important because it is very easy to have unrealistic expectations for the wrong bot or to lose money.

What Are Trading Bots?

These are software meant to read the markets and automate the trades of crypto traders. These bots work with algorithms programmed into them by their developers. So they function according to the program and the interaction of the variables with the live markets.

These programs utilize diverse market indicators to understand the latest trends and execute trades. The theoritical essence is to enable the user make consistent trades and possible gains through accurate reading of the market by analyzing the technical factors that move the market. The objective is to ensure that the trader consistently wins in the highly volatile cryptocurrency market through automation.

Ahead of Hodlers

Analysts are of the opinion that a crypto trading bot, if consistently making profit would keep the trader ahead of hodlers even in a bull market. For example, I know a trader that followed a strategy that gave him result equivalent to the 2017 bull market in one year. He accomplished this by consistently finding market bases and making numerous trades.

Can you imagine the outcome if the process is automated using this trader’s skills and experience? That is what crypto trading bots were theoretically developed to accomplish – keep executing trades for the trader after they have been set up using predetermined variables. But in reality, their performance leaves a lot to be desired because there are limitations yet to be surmounted by developers and those due to limited skills of the trader.  

Bots in reality work based on variables and parameters which must be imputed by the trader to enable the it make buy and sell orders automatically. This works through API integrated with the specific exchange that the trader is using. 

An application programming interface (API) is an interface or communication protocol between different parts of a program intended to simplify the implementation and maintenance of software.

Wikipedia

Types of Trading Bots

There are thousands of bots in the market, yet most of these make little or no money for their owners. The reason is that just as in humans, bots do not operate at the same level. They can be classified into two categories: retail and proprietary.

Retail bots: These are the common types of bots in the market. If you’re searching for a bot and make a Google search, the result you’ll see are retail bots available in most platforms. Some are even free for you to try out.

We must understand that the features and abilities of these bots is dependent on the skills of their developers. A bot designed by programmers with sound understanding of the market will help a trader with good trading skills. Retail bots are common in the market. That is why it is so easy to choose a wrong one that wouldn’t help you unless you have a clear understanding of what you are looking for.

Proprietary Bots: Proprietary trading bots are in a class of their own. These are not available commercially since they are developed in-house by hedge fund companies. They have behind them very smart developers, statisticians, economists and other sound professionals. Although we have no way of measuring their performance, they are undoubtedly leagues ahead of the retail bots because they are custom-made for the professionals using them.

What we have with proprietary bots are software that had the input of people with very sound knowledge of the market making them easy for in-house use.

Do trading Bots Work?

This is the question on the lips of many traders that have not used a bot. We may wonder if this is just another gimmick by developers to make money or if they actually work. Bots are built based on mathematical and computational principles, so we would like to know if we have antecedents that prove that such ideas work in the markets.

Let’s make reference to a secret trading group that has made a lot of money trading stocks. This is the experience of a member of the group in India:

“One evening, he told me about a covert team of elite traders that he had started a year back. The friend I had met previously were also a part of it. This dream team (as we later started calling it!) had pioneered a trading method called L.I.S.T Analysis (this is the reason I am anonymous but I have asked the team members before posting; also, no point Googling it).

The dream team was a group of 8 traders; I joined as the ninth. At first it was just exciting: I was new to the markets and there was this super secret group of rich 20 something guys and a girl who would meet in plush apartments and discuss this arcane trading method which worked like a charm. Everyone earned more than they could spend, drove expensive sedans and SUVs, wore nice clothes and partied in the best places. It felt like I was in a scene of that blackjack movie: 21. 

L.I.S.T analysis is basically two equations with a lot of variables. It didn’t start like that. AB had developed the method as part of a research paper and shared it with the next two members of the group who were his close confidants. That time it was basically a bunch of complicated spreadsheets and some paper notes. The first three members simplified it down to two equations.

One of the variables of the equation was the experience of the trader. Let’s say, Ei. Quantifying experience is obviously hard because it is subjective. You simply can’t assign the number of years as (i) to get the value of E. The group was looking for someone who has theoretical knowledge of trading but has never traded before (Ei = 0). Apart from this, diversity is in the DNA of the group. In trading, different mindsets bring out different opinions. Being American, and a woman, I fit in perfectly (the group really wanted to have more women in the team, and still does).”

The above illustration shows that with the right formula, parameters and equations, trading could be executed successfully if the right parameters are used and the right command executed by a program. So we can conclude that trading bots work under the right conditions. These are some of the conditions that we would see later.

How Do trading Bots Work?

The principle behind every trading bot is the same or nearly the same. What they do basically is to pull data from the exchange and analyze them. This can be done by plugging in through the exchange API and getting information such as historical price data. Important information that may not be readily available is the historical order book of the exchange. This may be streamed as it is useful for the development of trading strategy for the bot.

To implement a strategy, the trader would have to allocate values to variables as specified in the bot code. The logic, equations and calculations that would be implemented by the bot determines when to trade and what quantity of the coin should be traded.

After the strategy has been decided on and implemented through imputation of the right variables, the execution is now commanded. The execution enables the bot to communicate with the exchange’s API in a manner that the strategy to be implemented is clear.

Why Do You Need Bots?

As a trader, you may wonder if there are benefits in using a trading bot to execute trades. Here are some of the reasons why some investors are looking at trading bots as alternatives to manual trading.

Speed of Execution

Months ago, I came across a trader whose name is Quickfinger Luc. The guy bears that name as a testimony to the fact that there are trades that need to be executed quickly in terms of entry and exit from positions. This is even more pronounced in the coin market which is known for the rapidity of price changes.

Volatility demands that trading decisions and executions be made in short periods of time. Such trades are better automated, especially if the people behind it do not have the time to sit in front of the computer to monitor the price movement all day. Even if they can do that, there are times that the targeted exit price could last for a very short time that the trader requires quick action to close the trade and possibly initiate another. Bots are quicker than humans and better suited for such activities.

Repetition is Boring To Humans

An anonymous trader made a submission about her trading experience on Quora, the social discussion forum. According to her,

“… trading is hard and requires an ‘edge’. The edge has to be simple and repeatable. The secret to success in any profession is repetition and repetition is boring. It gets monotonous after a year or so, but the money keeps me going.”

So what was she referring to?

It is a fact that just 10 percent of traders make consistent gains in the markets. These are people who have mastered the market after years of practice. Market analysis, instincts and sometimes a little bit of luck works in their favor to make success out of most trades. I’ve seen this among some highly skilled professional traders who have many others copy their strategies. We shall see some of these strategies that such traders use to win all the time in this article.

When a trader has mastered the market to that extent, it requires doing the same things over and over again. This is when the job becomes boring. Trading bots can be used at this stage to automate the trading activities so that the trader doesn’t have to manually execute trades. This frees up the trader’s time and helps them maintain interest in trading.

Robots Don’t Get Weary

Aside speed and elimination of boredom, we are aware that the crypto market never closes. Like forex market, it is open 24 hours of the day, seven days of the week. The implication is that many traders need to stay up long hours while monitoring the market. This is wearisome and no one has the ability to keep up with such schedules indefinitely.

This is why trading bots come handy in aiding traders of digital currencies and other financial instruments in their quest to profit from the markets. The increasing popularity of these bots is linked with the need for automation of trading activities.

Quicker Market Entry

Due to the technological advancement in the world today, the way we relate with and trade financial instruments has evolved. Faster trades with high accuracy is the objective of most traders. Even traders who are just starting out in the game want to have things simplified in a way they could easily understand and possibly start making profit as early as possible. 

Everyone wants simple platforms from where they can quickly learn, monitor their trades, execute them and possibly outperform the market. As a result, automated trading software keep emerging to help traders advance their skills. They are for traders who want to do more in little time. They are supposedly for traders who don’t want to spend hours in the market analysis. Simple bot platforms can simplify the market for new traders also using interfaces that show them when to trade and why.

Bots Are Without Emotions

Experienced traders know that one of the limitations of human trading is emotion. These are mainly greed and fear, which every successful trader has conquered. Even traders who trade in teams work on their strategy but leave execution to team members that are least likely to be influenced by emotions.

Here’s the experience of our secret Quora team involved with the stock markets. This is also applicable to the coin market and forex market.

“The trading method of the team is two-fold: strategy and execution. Strategy is discussed every evening when all the members are present. Two of us, SB and AM, the most hardworking people I have met, would do the execution part. So the previous evening we would have made decisions such buy so & so contract between this Price 1 and Price 2 if x and y variables are met and z > something. Execution is a difficult job in which too many cooks spoil the broth.”

The impact of emotion is such that every trader experiences it with excitement or regrets. With trading bots, you don’t have to spend long hours deliberating over decisions. Every automated trade is pre-defined using criteria like the price changes in the market and market volume.

All the requirements can be personalized based on your understanding of the market or on the trading system utilized by an expert, which you can copy. Having done what should be done, you let the bot software handle the execution without your emotional interference due to greed that makes traders want to make riskier gains and fear causing them to close trades earlier than the strategy recommended.

Higher Processing Capacity

Computers have higher processing abilities than our human minds are capable of. Robots have ability to process massive volumes of data in seconds which gives them an edge over humans in terms of going through gigabytes of data in seconds, assimilate, integrate, make comparisons and use the available information to make split-second decisions that could make or mar a trade. This is why trading bots are becoming increasingly popular among crypto traders and other managers of financial instruments. Today, more than 50 percent of the stock trades are automated.

Why Many Traders Do Not Use Bots

Bugs: Bots are software built with codes which may still have flaws. This implies that there are risks associated with them due to oversight from the developers. This is the concern expressed by some traders. Someone wrote on BitcoinTalk :

“I wouldn’t recommend anyone to use a free bot. It makes you rely on the person who wrote the bot for you, and you aren’t likely going to receive fast updates and bug fixes. I only see problems here.
Paid bots are somewhat better as they do receive fast updates and bug fixes, but it would be better if you can have the issuer of the bot tweak it in case you want your bot to follow a different method or strategy.”

Another user wrote:

“Trading bots do work but if you by chance realize the magnitudes of risk involved in using trading bot you will think twice before using it. Sometimes these bots gets weak and make wrong trades, at this point any wrong trade made by this bots results in a heavy loss bigger than that of manual trade, it’s advisable that any trader that wishes to use trading bots should at least learn how to trade so as to detect quickly anytime the bot is making a wrong trading move and stop the bot before it gets too late.”

Plug-in Strategy: Some bots are made to accommodate the strategy of the trader through tweaking while some are not. Traders sometimes feel that the strategy encoded in some bots do not fit their trading patterns. 

Some traders think that bots are just too risky for the fact that only the developers know what is inside. Traders in this category say they wouldn’t mind using bots if it was built for them personally by a developer they trust.

There are those that think that bots would stunt their quest to improve their trading skills through over-dependence on the software.

Lack of Awareness: Many traders are just not knowledgeable about trading bot. These believe that they’re better off trading cryptocurrencies manually. There just are people who do not believe that these things have inherent advantages over humans.

Cost: One fact that we must face is that bots that are really good in terms of features and advanced settings do not come cheap. The high cost is another reason why many potential users keep off.

What Bots Can And Cannot Do

The popularity of bots stems from what they have been perceived to do. These abilities may not necessarily be that they’re a trader’s dream tool. Sometimes, developers hype them beyond what they’re able to accomplish.

With many bots in the market, it is important to understand that bots are in classes. The efficiency and performance of each bot is dependent on the programming skills, market exposure and experience of the programmer. Let us see what bots can actually do and what they cannot.

10 Things A Trading Bot Can Do for You (A List)

  1. Cryptocurrency trading bot would help you automate your trades.
  2. It would make you trade without involving your emotions.
  3. Sticks to a trading strategy unless you change it by readjusting variables.
  4. Makes your buy or trade orders faster
  5. Can run repeated trade actions without boring you.
  6. Allows you test strategies on different exchanges.
  7. Can be used to make profit in arbitrage by taking advantage of price differentials in different exchange platforms.
  8. Increases the efficiency of the trader by freeing up time for other things.
  9. It would detect the indicators as instructed and make trades.
  10. Uses historical data or situations that have existed before to bring about favorable outcomes.

10 Things A Trading Bot Cannot Do for You

  1. It doesn’t guarantee successful and profitable trades.
  2. Does not take initiatives without input of the trader.
  3. Cannot react quickly to unforeseen circumstances and market conditions.
  4. It cannot teach you how to trade.
  5. It cannot predict coins that would soon be subject to manipulations.
  6. It cannot predict or anticipate price movement due to fundamental factors such as policy changes by governments.
  7. It won’t quickly change the course of programmed trade when there are changes that could affect your already active trade negatively nor end them for you because of the unforeseen circumstance unless you programmed it to do so.
  8. It wouldn’t protect your funds from security breach in an exchange.
  9. Bots would not calculate your risks for you.
  10. Would not necessarily give you better result than if you’re an experienced trader.

Who Are Bots Meant for?

We have already established that bots increase the efficiency of the trader through automation. An advanced bot accomplishes this through the analysis of historical order and historical order books. Then the trader has to create the conditions under which the orders are to be made. The codes transmit this information through the API of the exchange which executes the strategy.

For a trading bot to have remote chance of making profit in a trade, the trader must have a strategy. What we can conclude from this is that only experienced traders that are seeking automation for their trades can use trading bots effectively.

It should be understood that a bot is a tool which doesn’t have a mind of its own. At least, its AI level operates under the guidance of humans.

A trader, Panganib999 wrote on BTT:

“Bots are tools and tools only it will be till the end. Trading using bots defeats manual trading by far in terms of efficiency, but in the end, a bot wouldn’t work without the knowledge of the trader. Plus, there are risks involved in using bots.  Since bots are automated, it only does what it is ordered to do. It can’t react on emergency or surprising situations that are out of its scope, which can lead to valuable profit that was otherwise supposed to have been earned by the trader themselves.”

So we can conclude that bots are meant for experienced traders who already have trading strategies.

Will You Always Win with Bots?

As we have already seen, the performance of the bot is based on the abilities of the trader and the strategy they implement. We should also note that bots are not made equal. However, none of them is perfect.

Here is a comment by David Schartz, a trader.

Making a reliable profit is not the purpose of a trading strategy. Optimizing the balance between risk and reward is the purpose of a trading strategy. In fact, it’s quite easy to make a crypto trading bot that makes a reliable… Click To Tweet

The trade-off of risk and return is fundamental. If there were a reliable way to have high returns at low risk, we’d all just do that and we’d all be rich. But, of course, there’s no known mechanism that can produce enough wealth to make everyone rich. So it can’t be possible to have high returns and low risk.

So, you say, “I want reliable returns”. That means you want gains to be common and losses to be rare. That’s actually doable, and it’s what most trading strategies do. But it’s also very, VERY foolish if you don’t understand the exact trade-off you’ve made.”

Despite that view, I am aware that most new traders think that bots would increase their chances of making more profit. What we have discovered is that aside increasing your efficiency, the best of trading bots are as good as the developer that designed them and the traders using them.

In this post, we shall see how you can take advantage of the best bots and apply some trading skills that could enable you have an edge in the market. 

Comparing Human and Bot Trading

Perpetuity: A bot can trade infinitely for you depending on how it was set up. This is unlike the human that would tire out quicly and want to take some rest after a few hours. So if you have a strategy that could make you $0.3 dollars a trade, you could set your bot make as many trades as possible. 

Quick Action: Bots have ability to make repeated orders immediately the programmed conditions are met. Their speed of execution is faster than that of humans. When speed is needed in trading, bots are better endowed than humans.

Emotion: Every trader knows that emotion is a deal breaker. Closing orders because you’re afraid to lose and regretting later when the price of the coin surges as you had earlier anticipated is common among traders. Bot has no emotions and would execute your planned trade according to plan. This gives them an advantage over humans.

Remedial Actions: When you have a bot deployed to trade, it does just that. If there is an unexpected change in the price of the cryptocurrency you’re trading, the bot would not close the trade and make necessary adjustments that a trader would have made. So, it is easy to lose a lot of money while trading with a bot since it wouldn’t trade contrary to set parameters.

A human would for instance notice that there is rapid drop in prices and decide to close current opened trade to buy the dip. Lack of initiatives is one of the limitations of bot trading. However, the more advanced bots would have more options to enable the trader tweak it to respond under such adverse market conditions.

Processing Capacity: Bots can process large mass of data at an amazing speed unlike humans. What most bots in the market lack is the ability to use advanced AI to make profit for their buyers.

The Bot Challenge

The sad truth about crypto bots is that many of them are just not effective. You would wonder why they are getting so popular despite the fact that most traders using them lose money.

Here’s the result of a research from Tradeceity:

  • 80% of all day traders quit trading within the first two years. 
  • Among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain. 
  • Traders sell winners at a 50% higher rate than losers. 60% of sales are winners, while 40% of sales are losers.
  • The average individual investor underperforms a market index by 1.5% per year. Active traders underperform by 6.5% annually. 
  • Day traders with strong past performance go on to earn strong returns in the future. Though only about 1% of all day traders are able to predictably profit net of fees. 
  • Traders with up to a 10 years negative track record continue to trade. This suggests that day traders even continue to trade when they receive a negative signal regarding their ability. 
  • Profitable day traders make up a small proportion of all traders – 1.6% in the average year. However, these day traders are very active – accounting for 12% of all day trading activity. 
  • Individual investors trade more actively when their most recent trades were successful.
  • Traders don’t learn about trading. “Trading to learn” is no more rational or profitable than playing roulette to learn for the individual investor.
  • The average day trader loses money by a considerable margin after adjusting for transaction costs.
  • Traders with a high-IQ tend to hold more mutual funds and larger number of stocks. Therefore, benefit more from diversification effects.

The question we should ask is why traders are still losing money if bots actually work. The answer is that bots have limitations in that they are not really AI enabled as some of their makers claim. This hides another underlying problem with the industry –scam. Many of the bots in the market are just clones of the work of others, especially open-source code bots, not improvements on them.

Bot-making is another channel through which malicious actors in the industry are cashing in on the ignorance of traders on what bots can do and what is beyond their scopes. Most times, bot makers that claim their bots would make money for the users are just interested in making money for themselves. To a large extent, such bots never even make profits for the owners talk less the buyers. This is why it is appropriate to keep expectations within limits while making a bot purchase.

You also have to understand that there are no bots that consistently beat the markets. Such bots have not been made. If they exist, you can bet that the owners would keep them for themselves and enjoy the edge it gives them over the market. The main essence of commercial bot-making is profit for the owners and automation, not necessarily profit for the buyer, especially if the trader has poor skills.

Using Bots Effectively

Running a trading bot blindly is the quickest way to lose your money. This is why you should understand the limits of the bot bearing in mind that it was not custom-made for you. On the other hand, it requires fine-tuning and back-testing against historical data to perform optimally for you. This is done by connecting to the specific exchange you want to use through API.

Withdrawal of funds should not be among the permissions that you grant your software while integrating with the exchange through the API. Revealing your API and secret phrase to a bot maker exposes your funds to possible theft. Click To Tweet

As mentioned earlier, it is absolutely important that you protect yourself from the possibility of losing your funds in case you got a bot that was not built by a reputable company. 

In backtesting, you’re trying to determine how your trading strategy would work based on historical data pulled from the exchange you’re going to use for your trading. You must test the performance of your strategy to make sure that you’re doing the right thing with the bot before trading your digital assets live.

This analysis is to make sure that your bot stands a chance of making a profitable trade and that you actually understood how the bot would work during live trading.

Are There Good Bots?

According to a Quora comment by Tom Kurpanik,

“A friend of mine is a top class Python coder. He’s been writing, improving, rewriting and then bettering (again) his trading algorithm for over a year now and it’s still a massive hit and miss.

He can make hundreds of thousands within any given month just to lose it all (or more) in the next one. That’s because markets are unpredictable and the historic data isn’t always the best tool to measure future outcomes. And that’s pretty much the only thing that a trading bot uses to tackle the market.

It will all change and human traders may very well become obsolete once the AI kicks into the markets, but not just yet. Although, I’ve heard and read about bots that apparently do show profits, but then it’s really easy to cherry pick the good results and weed out the bad ones to falsely advertise the accuracy of a trading bot.

And if one’s commercial intent is to sell such a bot, which in most scenarios that’s the case, then why would one advertise it by not focusing on the good trades. If you could somehow come up with an algo that measures the market sentiment and combines it with the historical data, you’re onto money. Otherwise, you’re just polishing your Python skills which isn’t a bad thing to do after all.”

How To Select A Good Bot

You should be pragmatic while selecting a bot knowing that there are many that are just clones meant to rip off the customers. The bot business is not too different from any other that you see on the internet. This is why you should consider some factors before settling for a bot. Some of these factors are:

Your Abilities: There are bots that are meant for people with programming skills in that they need to add some of their own codes to tweak them. You should look at the features that the bot comes with and be sure that you have the skills to fine-tune it.

Reputation of Bot Maker: Just as you wouldn’t send your bitcoins to an unknown exchange or one that you have not researched very well, it is also a bad idea to invest in a strange bot. You should understand that this is a tool that is meant to trade your asset and could become a channel through which malicious codes could be used to cause you losses especially if you enabled withdrawal option on the bot.

Backtesting Features: For the software to be worth your attention, it should feature back-testing functions that enable the user to understudy its performance using historical data. The essence is to know how the tool would react under similar conditions when it is trading your assets.

Don’t test the capability and performance of a bot during bullish markets only. Nearly every bot would make profit when the bulls dominate. Nearly everyone was in profit in Q4 of 2017. Even ICOs that had nothing to offer.

Claims: There are no retail (commercial) bots that would initiate a trading strategy for you based on artificial intelligence (AI). This is why reputable developers would not assure you that you would make profit by trading with their bots. When the owners of such software make such claims, you can bet the purpose is just to rip you off.

Exchanges Supported: Every trader has exchanges they prefer making trades on. You would like to make sure that the bot you’re buying supports the exchanges you use.

Settings: The user interface is important in the use of any software. This is why some services permit you to access them through free trial. You should use the opportunity to make sure that the bot resonates with you. One of the most important factors in choosing a bot is that it must have feature that enables you to set triggers that makes it trade when desired market conditions are met.

Your Strategy: Remember that one of the reasons most bots never make money for the trader is that they were not designed with a specific trader’s strategy in mind. If you have a working strategy that you’ve been trading with, it is not a bad idea trying it with the bot to make sure that it could help you execute it before making live trades of substantial volumes.

Your Budget: It doesn’t make sense spending more than you’re ever going to earn on a bot. Feature-rich bots are more expensive. You should be sure that the tool makes economic sense and not just a waste of money to you. You just have to bear in mind that the options you have with cheap bots are limited. Your risks are also higher because it’ll easily lose during down markets.

VPS Based: Bots that run on the cloud are better since switching off your computer won’t affect their operations.

Copy Trading Ability: There are bots that would simply copy the trading strategy of another trader if they’re programmed to do so. You may consider investing in such bots if tweaking and planning trades is not your thing.

Must You Invest in Bots?

With the hype around trading bots, it is easy for some traders to be misled. Here is a comment someone made on a platform,

“If you are new to cryptocurrency and have little trading experience I would recommend choosing a fully automated bot such as…”

This is certainly a wrong advice. Whether you should invest in trading software depends on a variety of factors. Manual trading should be the primary focus of every trader, especially a beginner trader. You must develop your skills and build a personal strategy and possibly perfect it before considering trading with a bot.

Bear in mind that you need good understanding of market metrics and indicators to know a good trade and trading bot. Granted, bots are not born equal, but there are many that are not worth wasting time on and others that are even scams that could make you lose money. You need basic understanding of what you’re looking for to identify and use good trading software.

So a bot is essentially for a trader who knows how to make a successful trade and take profit. At least, that is the basic prerequisite to know exactly what you want the bot to accomplish. You should definitely use a good trading bot if you’ve fulfilled the conditions mentioned above.

Before Investing in A Bot…

Legitimacy: You wouldn’t want to fall for another scam just because someone said that you’ll make profit by using their bot.

Ease of Use: If you’re not too experienced in tweaking things, you should go for a bot that has done most of the backend work for you.

Features: if you’re an advanced trader, you’d want many more features which would suit your strategy but increases the risk of trading, features which a less experienced trader would not need.

Reviews from Users: It makes sense to check the pulse of users of the software instead of depending on what the developers say. If the users have good reviews about the bot, the chances are that you’ll get some good results. However, as in everything else, outcomes vary depending on individual capabilities and peculiarities in circumstances. Your objective should be to learn everything you could about the bot you purchased so that you get the best result from your investment.

Some Trading Bots

Let us take a quick review of some bots. Please bear in mind that some of these bots even though popular are not necessarily the best in the market. Included in the review are some of the comments and testimonies that users have published online about them. If you have used any of them, we’d like you to rate them based on your experience. We are aware that experience and expertise in use of bots vary. However, this social signal is meant to help prospective users choose the good bots.

Haasbot (HaasOnline)

Class of Software: Advanced

Features: Automated trade bot that starts trading for you in minutes, a visual editor that enables you monitor what your bot is doing, integrated with exchanges dozens of exchanges. Haas script that enables the user customize their strategy makes Haasbot one of the bots of choice in the industry. When a trading pair is selected, an indicator scanner is activated to determine the best indicator for the trade.

Its script function allows user to create and deploy their own script after debugging and backtesting. All these are done without coding skills. There is arbitrage bot on the platform which enables the users to keep trading even if their main exchange is down.

The company was founded in 2014 and released the first version of its bot in the same year. It currently has more than 10,000 users.

Indicators: It uses a variety of indicators to support its advanced function. At the last count, there were more than 40 indicators.

Trading Strategies: 14 strategies preinstalled

Is Margin Trading Available? – With leverage (Bitfinex)

DCA – No

Paper Trading – Yes

Backtesting – Available after purchase

Supported Exchanges: Binance, Bitfinex,  Gemini, HitBTC, Huobi, Kucoin, Poloniex, Coinbase Pro (GDAX), Bitmex, Bitstamp, Bittrex, C-Cex, CEX.IO, Deribit, HitBTC, Huobi, Kraken, Nova Exchange, OKCoin, OKEX . More than 20 exchanges supported.

Demo – Available

Pricing – Beginner 0.073 BTC Save 0.039 BTC with Annual Billing

              Simple 0.127Save 0.069 BTC with Annual Billing

               Advanced 0.208Save 0.112 BTC with Annual Billing

Installation – Window, Linux, Mac OS

Company’s Comments

“Conduct technical analysis, execute manual trades, and watch multiple markets all from our market view. Combine your trade strategy with our HaasBots to see why we are the leading bitcoin trade platform!”

“We are in the process of making it easier to use for novice traders who are looking to expand their trading abilities.  However, there’s never any guarantee any partially automated trade strategies will always make you money, especially when you’re dealing with a highly volatile market such as crypto. 

We cannot control new restrictions or circumvent the limitations that exchanges place on their platform or their API.  Our current documentation and website are being revamped to keep pace with all of the ever changing conditions.”

User Review

“I bought this crappy software for 1400$ FOR A 3 MONTH LICENSE (MOST PROFESSIONAL ONE) when bitcoin was like 17000$. Only to find out that:
 Their forum is dead. Even closed forum has no valuable information. Many “guides” with promising end were promised years ago without any advance. Their bot doesn’t make any money which is absolutely ridiculous for this kind of money.  MOST IMPORTANT and I claimed refund based on this
I saw the exchange I’m registered at (CEX) in the list of supported markets. BUT IT DIDN’T WORK! Stephan (probably the owner) told me it’s not Haasbot problem, but CEX. In the end it was only my problem, because I waited a few weeks to see that obviously problem is LONG KNOWN, but they are ready to sell the bot, but not ready to refund or acknowledge their mistakes: which is to inform buyers that something is not working for MONTHS! I asked for AT LEAST a partial refund. No reply for a week. So here goes this review. GOOD LUCK!”

User Review

“The software is EXTREMELY buggy, with a lot of functions simply not working (some indicators do not work, the backtest feature works very on and off for no apparent reason, sometimes you can’t save changes you make to your bots etc.). it gets really annoying because it slows down a lot of the work you put into developing your bots. Other than that, the bots itself seem to do their job properly. Wouldn’t recommend this software to noobs.”

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ProfitTrailer

This is an advanced bot that automates trading activities using adjustable user panel. Users can get their bots up and running, trading 24/7 on multiple exchanges on a single license. It goes further by providing multiple strategies that can be used on the platform’s bot.

The company has been around since 2017 and has built a reputation as one of the bot makers with some that has attracted many traders service. Presently there are more than 30,000 users of the platform. Features: It has an intuitive dashboard to enable you monitor the bot and your trades, adjustable potential trades. The coins that have been purchased by the bot waiting to be sold can also be viewed on the dashboard. It has a powerful VPS and an automatic setting for your bot. The company said they have taken care of everything so that you focus on making money.

Indicators: SMA, EMA, MACD, Bollinger Bands, RSI, Stochastic, Stochastic RSI, OBV. 

Trading Strategies: There are 18 trading strategies available on this platform, with four coming soon. The interesting thing about ProfitTrailer is that the options cater from every market situation whether bull or bear.

Is Margin Trading Available? Yes

DCA – Yes

Paper Trading – Yes

Backtesting – No

Supported Exchanges –

Demo Available – Yes

Pricing – Signal Edition 25 euro/month, Lifetime 449 euro,

               Basic 39 euro/month, Lifetime 499 euro,

               Basic+VPS-59 euro/month, Lifetime 724 euro,

               Advanced-59euro/month, Lifetime 699 euro

               Advanced+VPS 99 euro/month Lifetime 1299 euro

Installation – Supports Windows, MacOS and Linux. Mobile friendly.

Company’s Comment

“ProfitTrailer is just automating what you would do when you are manually trading. Nothing more. It is just doing the trading without emotion and over a much larger period.”

User Comments 

“Bots like this will only make a profit in bull markets, and the profit they make then is less than a buy and hold strategy would do. In bear markets like this, bots bleed worse than not trading.”

User Comment 

“Profit trailer absolutely kills it when the market is good, but also has a huge host of safety features for when the market turns. By my count I have survived 4 crashes of varying degree, and only the January/Feb crash led to a month period where my BTC balance and USD of my account was not significantly higher than at the start.

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SWBot

This is a bot by Russian developers that runs on your desktop even though the developers advise that a VPS is a good idea for uninterrupted operation.

Class of Software: Open source

Features: It features double-sided trails for purchases allowing the trader to make maximum profit during rebounds.  It can trade a large number of pairs with the same API spacing the requests in a way that wouldn’t cause issues with the exchange.

It also has trailing stops for selling and buying with options for manual selection of coins. Its automatic mode is the default selection which scans the exchange for profitable trades in a smart bidding process.

Indicators – BB, RSI

Trading Strategies – There are no defined strategies

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – No

Backtesting – No

Supported Exchanges:  Bittrex, Binance, Poloniex, WEX     

Pricing – $25 monthly for a bot

Language – Russian (translation available)

Installation – Android, iOS, MacOS, Linux/ Unix

User Comments

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Gunbot

This bot promises to automate your trading with the outcome being consistent better results. The license is sold through resellers and can only be updated through the gunthy token which users have to hold.

Class of Software: Advanced

Features: It supports many trading pairs on a number of exchanges. The bot has a preset mode that makes it beginner-friendly and runs on your local computer. It integrates charts and signals from TradingView (at extra cost). This enables visual assessment of the entry and exit points.

Indicators: SMA, EMA, RSI, Bollinger Bands, Ichimoku,ADX (Average Directional Index), ATRTS (Average True Range Trailing Stop), MACD, MFI, StochRSI, Stoch

Is Margin Trading Available? – Yes

DCA – Yes

Trading Strategies – There are 15 different strategies

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – Binance, Bitfinex, CEX, Coinbase Pro (GDAX), Cryptopia, Kucoin. Poloniex, Bittrex, Huobi and Kraken are TradingView supportive with the bot.           

Trading Pairs: Unlimited

Demo – Yes

Pricing – Starter 0.04 BTC, Standard 0.10 BTC, Pro 0.15, Ultimate 0.25

Installation – Gunbot runs from your own Windows, macOS, Linux or ARM computer.

User Comment

“Getting the program set up and running is quite time consuming and clunky. I understand that this isn’t geared towards average Joes per say, however, I feel Gunbot would be much more successful if the instructions were simplified, and the bot overall a little more beginner friendly (purchase, using Gunthy tokens <-kind of a pain in the rear, have to wait for airdrop, more ways to lose your license or ability to utilize the bot at all, after already investing quite a bit of time and money).”

User Comment

“It’s not instant delivery of tokens bear in mind. Gunbot itself is not straight forward to setup but I managed to get it to run and I’m fairly tech savvy. But actually getting good use out of it you will need to have some strategy and be able to implement it via the scripting or best case GUI. Unfortunately this does not have the best or clearest guidance yet I will need to spend significant time figuring it all out. So far best case use is being able to post orders off the exchange so your moves are not visible to the big whales and sharks that stop hunt.”

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Botanica

This is a trading bot meant specifically for Poloniex exchange. However, the downside to this bot is that the owner is not known, even though they have an active account in a Russian forum where they attend to most of the issues users of the bot may encounter. The absence of a website would be a disadvantage but the fact that it has a free version may make it worth trying out.

Class of Software: Average

Features – It trades on all pairs available on Poloniex, even though this depends on the state of the market according to the ANN thread created by the owner in several Bitcoin forums. Users can enter trade pairs either in manual or automatic mode, using bot algorithm to analyze the market.

The bot is active in bidding and would automatically change the price ‘’for the best” until the order is processed.

Indicators – EMA

Trading Strategies – The bot makes automatic purchase of coins with high trading volume when their prices fall below the EMA 20 and EMA 30.

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – No

Backtesting – No

Supported Exchanges – Poloniex

Trading Pair – Several pairs vailable on Poloniex

Demo – Yes

Pricing – 0.06 BTC for lifetime license.

Installation – The free version can be downloaded here. To get the full version, you’d have to contact the developer on email dbdevelop7@gmail.com

Supported Languages – Russian, English translation and other languages available

Question from User

“Today I watched specifically – after the sale of the bet, there are messages about the removal of the safety net rates and everything hangs at this stage for 5-7 minutes. At the same time, it is the bot that loads the system by 13%.”

Botanica User

Answer by Developer

“13 percent is not a burden. After the sale, the bot starts to select a pair for a new transaction and actively send requests to the exchange to build EMA charts (and this is a few requests for each pair). It is not difficult to build a chart, but for this you need to get data from the exchange. And when the pairs in the list are almost 4 dozen, as you have, then this translates into a very large stream of requests. What the exchange most likely begins to react as a flood. Try for the experiment to start the bot first with 1-2 pairs, and then build up 5 with each step, you will find the optimal amount.”

Botanica Developer

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Botee.Trade

This is a bot that you can launch on your browser or install locally on your device. The company asserts that it would help you automate your bitcoin and altcoin trading and has made it free for a 7-day trial.

Features

The Botee Trade platform boasts an easy to use interface, smart charts that give you an overview of the indicators that you’re working with. You can easily tweak it to convenience to match with the strategy that you want to use on execution of your trades. There are no limits to configuration.

The dashboard makes it possible for you to visually assess the trading actions of the bot. 

Class of Software – Advanced software

Indicators – MACD, Bollinger Bands, RSI, Stochastic, Stochastic RSI

Trading Strategies – Customizable

Is Margin Trading Available? – Yes (Bitfinex)

DCA – Yes

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges

Trading Pair – An array of coins can be traded

Demo – Yes

Pricing – Free Trial for 7 days, Standard $60/month, Advanced $120/month, Superior $270/month

Installation – Cloud service, browser-based

Supported Languages – English

User Comments

“It is quite good but I’m not really satisfied about the service it provides. There are some errors when I tried to run the bot but it can be fixed later on. But the hassle it gives is very disappointing when the transactions are ready to work.”

BoteeTrade User

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 Gimmer

This is a relatively new project that was launched after a crowdsale. The beta test stage showed that it is still an ongoing project. In fact, the same could be said for most bot projects. The internal token of the bot platform is the GMR which an owner is expected to hold to power some aspects of the Gimmer bot ecosystem.

With over 35,000 downloads, according to the site, it is easy to set up even though the trader would need a clear understanding of the market and strategy to implement if they hope to have the bot work for them. If you’re good at setting up a good strategy, you can rent your bot on the platform and make some GMR tokens.

According to the Gimmer team,

“All Gimmer users are offered 1 free bot, pre-configured and ready to go. It comes with the choice of 3 indicators and a maximum trade amount of $100 You can upgrade this bot at any time by becoming a Gimmer token holder. As a Gimmer token holder, you will have full access to your bot of choice. Each type of bot requires a different amount of tokens to be held in your wallet.”

Class of Software – Average Software out of beta-testing

Features – This is a marketplace where users can create and rent their strategies. Its simulator allows you to try out the strategy before deploying it in live trading. Its social trading enables users to connect with other traders and discuss signals and strategy.

Indicators – personalized for the trader who can add from many indicators such as Bollinger bands

Trading Strategies – You can run a triangular arbitrage, spread and margin trading bots but would be required to hold some GMR to do that.

Is Margin Trading Available? – Yes

DCA – No

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – BitMEX , OKCoin, Huobi, Poloniex, Kraken, Cobinhood, Binance, Bittrex, Bitfinex

Demo – Yes

Pricing – 250 GMR to launch a bot

Installation – Windows, OSX, Linux and other versions are available for download.

Supported currencies – Multi-coin support

Supported Languages – English

User Comment

“Haven’t used Gimmer in like 6 months, had thought by now it would be working…but it doesn’t look like that’s the case. No mention of it in their press releases. Marketplace is up now though…so…I guess that’s good.”

Comment

“You just have to play with configurations, do lot of backtesting. Some will work well in certain periods only”

Gimmer User

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Cryptorg

This bot platform enables the user to launch up to 10 bots free for 14 days when they sign up. They can also earn some CTG tokens, which is the internal currency of the platform. This is through the trade-to-mine system option which is more of a staking that rewards holders of up to 100,000 CTG.

Class of Software – Intermediate, seems more interested in promoting its token than building a working bot.

Features – Manual purchase of coins to avoid automatic trading, integration with TradingView.

Indicators – Bollinger bands

Trading Strategies – filters used in bot configuration to suit strategy of trader. Safety orders are automatically initiated during take profit. Bot can trade on long and short strategies.

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – No

Backtesting – No

Supported Exchanges – Poloniex, OkEx, Bitfinex,Binance, KuCoin, BTC-Alpha, CoinsBit, HitBTC, Bittrex.

Trading Pair – Avoid trading a coin twice with another pair to avoid errors.

Demo – Available for 14 days trial

Pricing –  One bot $15/month, 30 bots $30/month, 100 bots $60/month, 500 bots $100/month

Installation – VPS cloud installation, no need to install on device.

Supported Languages –English, Spanish, Russian

User Comments

“I’m just trying to setup my first bot, have USDT in my binance account, tried usdt-btc / usdt-fet but always getting message like trying to sell 0.00273202 BTC for 30.00001109 USDT or trying to sell 78.27790182 FET for 12.00000000 USDT. Never get bay signal do I missed something?

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GBot

This automated trading bot is integrated with Telegram and can work on 16 exchanges. According to the information available on the site, users can earn an average of 3 percent. We know that bot use is a function of trader’s strategy and experience since no bot in the market has the capacity to trade independently without appropriate guidance and settings.

Class of Software – Advanced 

Features – Supports trailing stop, stop loss and other varieties. There are no limits to the number of trading pairs. Monitoring of trade can be done through Telegram.

Indicators –  Bollinger bands, RSI

Trading Strategies – Scalper when the market is flat. Bot makes purchases when the market goes down.

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – No

Backtesting – No

Supported Exchanges – Poloniex, Bittrex, EXMo, Bitfinex, LIQUI, Binance. Other exchanges are supported but not officially.

Trading Pair – unlimited

Demo -Yes but limited 

Pricing – $100 unlimited license for 1 month for all supported exchanges, specific license for an exchange is $30

Installation – Can be installed on local computer or Rasberry Pi; Window, MAC, System requirement: Nodejs version 8 or higher

Supported Languages – English, Russian

User Comments

“This is a super high-quality product with a ton of settings. Fuses if you did not understand the settings, and with a detailed manual and FAQ which is written in human language. You rarely see this ratio even with paid products.”

Gbot User

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Apitrade

This is one of the bot platforms that claim the use of machine learning to automate trades. The bot platform is subscription-free as the users pay only for profitable trades. This is the most outstanding feature of Apitrade.

Features – lays emphasis on arbitrage as bot can be programmed to go through several exchanges to determine and take advantage of price differences. Trading of several pairs can be monitored on a window.

Indicators – None

Trading Strategies –  Automatic selection of trading pairs, its ‘waves’ algorithm automatically buys altcoins when their values decrease and sells when it increases to a certain level

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – No

Backtesting – No

Supported Exchanges – Binance, Kucoin and Huobi are supported for automated trading

Trading Pair – Unlimited

Pricing – the pricing model is somewhat based on the profit made, this claim has not been verified.

Installation – Cloud service, no need to install on computer

Supported Languages – Russian, French, English, German

User Comment

“I am trading about 1BTC in binance but the API bot only used less than 10% in all positions combined why is it not using more of the BTC?”

User Comment

“Hello all, I am very much enjoying APITrade up to now. I wanted to ask one question however, only about 1/3 of my funds are being used to make trades. How can I make APITrade use all of my funds whilst still maintaining the guarantee of covering against any losses? I read on the site that the default settings need to be used and so I did not want to change any settings without prior approval. Kind regards.”

User

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 AutoNIO

This is a decentralized automation bot built on the Ethereum smart contract. The platform introduces what it called “a comprehensive sharing economy” that provides tools for traders to have an edge in the cryptocurrency market. It is one of the platforms that claim it is AI enabled. The ecosystem, like all decentralized platforms is driven by the NIO token which is its internal currency.

Class of Software – Decentralized Application (dApp)

Features – Analytic tools, copy trading, AI market sentiment tool.

Indicators – Accumulated Distribution line (ADL), Bollinger bands, MACD, OBV, ADX, FI, KST, PSAR, ROC, RSI

Trading Strategies – It uses the same strategy for all traders in the beta test version. This is called the genetic algorithm.

Is Margin Trading Available? – No

DCA – No

Paper Trading – No

Backtesting – Yes (on latest version)

Supported Exchanges – Binance, Ethfinex, Kucoin

Demo – No

Pricing – 3000 NIO tokens for license

Installation – MAC, Window and Linux

Supported Languages – English

User Comment

“Hi everyone, I had download Autonio on my MAC OSX computer and the verification process doesn’t want to stop…. and launch Autonio…somebody can explain me why how to fix this to see the software? and yes I have already sync my ETH Metamsk address”

User Comment

“I have tried two pairings on Bittrex and when it fires a trade, I check my account on the exchange and the buy price is much lower, causing the trade to never complete. The trading console continues to place buys that never fill. I’ve seen this with VTC and TUBE on Bittrex and haven’t gotten any trades to go through so far.  Wondering if you’ve seen this before?”

User, Bot Channel

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3Commas

This is a trade automation platform that claims it could help make profit across several crypto exchanges. It is a zero commission platform integrated with Trading View. The platform has been around since 2017 and tries to educate users on how best to use its bots.

Class of Software – Intermediate

Features – Trading View custom signal available for top options. They have two types of bots; simple and composite bots. All bots have concurrent take profit and stop loss. On the premium options, there are algorithms for long and short positions trading. It is an easy-to-use platform with investment tracking feature.

Indicators – No indicators, just buy and sell signals, graded by RSI.

Trading Strategies – there are manual and automatic strategies, with the manual comprising buy and selling of coins in a single window. The automated trading is a 24 hour trading system with technical indicators with bots.

Is Margin Trading Available? – On BitMex

DCA – Yes

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – YoBit, Poloniex, OkEx, Kucoin, Kraken, Huobi Global, HitBTC, Gate.io, Exmo, Coinbase Pro, CEX.io, Bybit, Bittrex, Bitstamp, Bitfinex, BitMex, Binance,

Trading Pair – Available pairs on chosen exchange

Demo – free access for 3 days

Pricing – Starter $29 monthly $24 semi-annually, as a one-time payment of $147.9 $21 annually, as a one-time payment of 261.0;

Advanced $49 monthly $41 semi-annually, as a one-time payment of $249.9 $36 annually, as a one-time payment of 441.0;

Pro $99 monthly $84 semi-annually, as a one-time payment of $504.9 $74 annually, as a one-time payment of $891.0

Installation – No need to install, web based

Supported Languages – English and Russian

User Comment

“I want to use a tradingview custom indicator as a single trading mechanism It seems that I cannot remove a “take profit” so it doesn’t trade prematurely. I also don’t want a safety order. Why can’t I just use TV as a simple trigger?”

User on Company channel

User Comment

“I am planning to take advantage of the Binance trader version in 3commas….but I am unsure about the amount of funds to work with for this bot scalping strategy. To me, it seems, that a small amount like under 1000 usdc, usdt, usd, tusd, and such would require far too many trades and fees to pay out. In order to justify a big enough amount of gains between these small spread between buy and sell prices, one would need to work with at least 2000 USD but more like 5000 USD and more. Is my thinking on track here or, can a person make satisfying gains trading only 1000 USD? I am talking about the bots here, not smart trades.”

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C.A.T. Bot

This bot platform has been around since 2017 even though it claims it is trusted since 2014.

Class of Software – Java based

Features – This is a Java-driven application compatible with any OS device

Indicators – None

Trading Strategies – Ping pong with adaptation to modification

Is Margin Trading Available? – No

DCA – No

Paper Trading – No

Backtesting – No

Supported Exchanges – Poloniex, Bittrex, Binance, Bitfinex, Bitstamp, CEX.IO, C-Cex, HitBTC, Kraken, OkEx, Livecoin, Huobi, BitMEX, OceanEx, Coinbase Pro, Gemini

Trading Pair – Over 100 markets according to the site

Demo – Untested

Pricing – Core License C.A.T. bot, 0.065 BTC

Paid API Interfaces 0.015 BTC

Triangular Arbitrage bot for Binance, OkEx and Poloniex 0.039 BTC

Installation – You have to have Java8 RE installed, runs on VPS Mac OS = Windows

Supported Languages – English

User Comment

“This is a small post to show my satisfaction for purchasing this application. After a few days of operation, I obtained profits with few settings. This application is user-friendly, easy to understand, etc.

A French expression says “You can buy this application eyes closed” With proper configuration and with markets with a large volume of trade, you will obtain gains. I have only one regret: why I haven’t known this application earlier”. The “after-sales service” is also perfect (I had always great answers to my questions)”

User comment on Forum

User Comment

“What do you expect, and what does the past show? I don’t think C.A.T. is a turn on and forget bot. I suggest you to reserve time to watch the market and react to it. You can do that within C.A.T. Market list. Move/resize columns, sort by spread or buy24h (sell24h). Watch what is at the top, watch which coins have mostly equal buy24h and sell24h.

Mostly equal 24h values means you can buy and sell easy.
High spread shows potential earnings. Of course you also need to check if the market trades sufficient volume, as you want to trade.
Finally, if you make a profit, it’s very unlikely you make soon another profit with that coin. If you want to get great profit, you need to react quickly to the above market numbers.

C.A.T. is a tool, like a hammer. You can build a house and you can destroy a house with it … just much faster.”

User on Telegram channel

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Margin (Leonardo Bot)

This bot platform has been around since March 2018. Considering that unlike earlier platforms that mostly came on board during the bull market, most reviews from users of such bots would give insight into their performance in a bearish market as seen that year.

A recent email from the Margin team to Cryptoinfowatch stated after reviewing this post:

“It would be great it you could edit a few items but otherwise, it is awesome! We were actually founded in 2014 under the product name leonArdo but then rebranded in 2018 to margin.

We currently offer 4 bots, Ping Pong, mArgin maker, EMA and Bollinger Band. But, we are beta testing two new ones: a Scale bot and a Strategy Editor. You can test those in our beta release here: https://discord.gg/ymTd6P6

Also, we stopped support rasp pi at version 2.0.0 I’m afraid and for the forseeable future we wont be adding it back.

Features – drag and drop orders, indicators and multi-screen functions, Configurable GUI, make it an easy-to-use bot platform.

Indicators – Bollinger bands, EMA, MACD, RSI

Trading Strategies – Smart order route spits large order over multiple exchanges to ensure best prices. This is consolidation and comparison of order books considering client’s funds and exchange fees. Ping-pong bot allows the setting of static buy and sell orders

Is Margin Trading Available? – No

DCA – No

Paper Trading – Yes

Backtesting – No

Supported Exchanges – Binance, CEX, Bitfinex, Kraken, Bitstamp, Gemini, Bittrex, Huobi, Kucoin, OkEx, HitBTC, OKCoin, Latoken, Coinbase Pro, Poloniex, CoinOne, BlueTrade

Demo – Yes

Pricing – Starter One-time $129 for License, Standard $259, Professional $2999

Installation – Supports Windows, Mac OS, Linux, Raspberry Pi (support ended)

Supported Languages – English

User Comment

“Since last August I have only traded using EMA or long hodls. It has worked pretty well for me, I’m happy to take a little off the top from time to time and pass the rest along. I don’t treat it like a gambling machine either, only a percent or two on each pair. I stick with what works and don’t lament what doesn’t work, no one strategy is fitting for everyone.”

Bot User on Forum

User comment

“Is it possible to add another bot on margin? The EMA works really well. But I found an indicator that is more accurate than EMA, Supertrend at RSI. It’s on Trading View. The supertrend buy and sell signal has the most likes. I’ve also found the excel math behind the indicator.”

Margin User

User Comment

“Since day 1, I literally just dragged and dropped. It took me 2 minutes to learn. I’m no expert. Never traded but made gains Monero and BTC worked well for me”

User on BitcoinTalk

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Using the coupon code ‘Cryptoinfowatch’ would give you 10 percent discount on Margin purchases.

Cryptohopper

This bot platform has been around since July 2017. It is an automated trading platform for Bitcoin and more than 100 other cryptocurrencies.

Class of Software – Advanced

Strength – Good customer support

Features – Automatic trading, exchange arbitrage, trailing stop, market-making bot. trading signals and high number of positions is an added function of this bot software.

Indicators – RSI, EMA, Parabolic Sar, CCI, Hammer, Hanged Man,

Trading Strategies – Drag and drop strategy designer enables the users to customize their trading strategy using various indicators. Just click on the indicator and configure.

Is Margin Trading Available?

DCA – Yes

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – Kucoin, Bitavo, Huobi, Bittrex, Binance, Kraken, Coinbase Pro, Poloniex, Bitfinex, Binance.us

Demo – Yes

Pricing – Pioneer, FREE for 7 days; Explorer, $15.58/month; Adventurer, $41.58/month; Hero, $83.25

Installation – runs on browser, no installations needed

Supported Languages – English

User Comment

“Well my hopper strategy is losing big time. I’ve just been running it on paper trading. Anyone have any suggestions on something which has been showing BTC profits over the last few weeks? My strategy is to try to catch coins which are moving up and sell them before they start going back down. or at least for more than I bought them for..Currently trying 30min EMA. I’m trying to accumulate the BTC balance..so I’m trying to catch things going up relative BTC. I want a stop loss I think because I’m not into things going to -25% or anything like that”

User on Discord Channel

Comment from Support

“First and foremost trading against a moving average directly can be extremely difficult as often the moving average is deceptive how much your actual price will be. you may need to look at changing a moving average from an EMA to a triple EMA to try to better catch your situations.

You may also wish to try and test other indicators with it as confirmation points. Moving averages are the devil’s blades of cryptocurrency. They are incredibly useful visual tools and confirmation tools but extremely difficult to master. Their simplicity can be your worst enemy.”

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Zenbot

An open source scripting bot. This means that only people with programming skills can use this platform to build and configure their own bots based on their trading objectives. It is a command line bot-making platform that uses Node.js and MongoDB

Class of Software – open source

Features – A fully automated bot based on technical analysis. Ability to integrate with exchanges with exchange support via plugins

Indicators – any desirable indicator is supported

Trading Strategies – Dependent on the choice of the trader and programmer

Is Margin Trading Available? – No

DCA – No

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – Binance, Bitfinex, Bitstamp, Bittrex, CEX.IO, GDAX, Gemini, HitBTC, Kraken, Poloniex, QuadrigaCX and TheRockTrading

Pricing – FREE

Installation – Windows, Linux, MacOS supported

Supported Languages – English

User Comment

“Any time I try to live trade with GDAX. BCH-EUR pair (also tried LTC-EUR with the same results), I am getting “price is too accurate. Smallest unit is 0.01000000”. In the payload request logged on the error the price is like: price: ‘290.27902500’. Also, tried to mess with asset_increment and increment on product.json, with no impacts on the tests.”

User Comment

“I’ve been looking through the changelog of the project, and I’ve seen that some months ago, GDAX’s products.json didn’t include trailing zeros in any of its variables.
Last products.json without trailing zeros is from June 27 commit bfeedfa
Next products.json update was in July 23, commit 1334c48. However, I rolled back to June 27, and running update_products.sh generates the products.json with trailing zeros, so I think that something changed in coinbase’s api products response. If trailing zeros is truly a problem, it may be fixed in update_products.sh”

User, Github

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Gekko

Gekko is a scripted bot which is open source. This means that you need programming skills to launch it. This gives you a lot of options to tweak and customize things the way you want until the bot is like an extension of your arm.

It is a platform with which the user interacts with exchanges using codes. Basically, they’re telling Gekko, if prices go up, cause the exchange to do this or that. Through these command, Gekko would take care of aggregating live market data, calculating indicators, execution of live orders (tradebot), calculating profit and risk metrics, graphing the results in a web interface, management and importing historical market data and more.

Class of Software – Open source

Features – runs anywhere, a plugin system with web interface, exchange supportive and a strategy platform.

Indicators – Any indicator could be used by the owner as long as they have the programming skills to add integrate them.

Trading Strategies – Gekko makes it possible for the user to create their own strategies and backtest them using historical data before live trading. All the user needs is knowledge of the technical analysis they want to incorporate.

Is Margin Trading Available? – No

DCA – No

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges

Pricing – FREE

Installation – Windows, Linux, macOS, cloud on rasberry PI

Supported Languages – English

User Comment

“January is pretty hard though (for trend based strategies) since all markets are getting butchered right now. I do a lot of automated trading (arbitrage, market making and different strategies with Gekko: trend watching as well as some crash risk monitoring). I make enough money with automated trading to sustain myself.”

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Kryll.io

This is a bot marketplace built on the Kryll platform. Its essence is to enable people share strategies which others could make payments for to benefit from. The platform uses the KRL token which is the internal currency used for billing.

Class of Software – Advanced

Features – Drag and drop tools used in the creation of strategy, integration with Trading View, live simulation and backtesting, marketplace where your strategies are monetized, social trading to discuss strategies and share ideas, pay as you go. There’s auto-saved TA also.

Indicators – Bollinger Bands, Ichimoku, MA, RSI, MACD

Trading Strategies – To start a strategy, choose the exchange, pair and enter the starting wallet. Users must have a minimum of $100 to start a strategy.

Is Margin Trading Available? – No

DCA – Yes

Paper Trading – Yes

Backtesting – Yes

Supported Exchanges – Binance, Bittrex, Liquid, Kucoin, Kraken, BinanceUS, HitBTC, Bitstamp

Demo – Yes

Pricing – Livetrading is billed in KRL every minute as 0.0333 % per day of the amount currently invested in strategy

Installation – No installation needed unless with mobile app

Supported Languages – English, French, Spanish

User Comment

“The development of Kryll was quite good, this seemed the team had an idea for the second gift. With this, Kryll can still move and stay alive. Although the price is still far from expectations, Kryll still has a good volume. Hoping that the new application can run smoothly and be able to add many investors”

User on Channel

User Comment

“When I discovered this project, I felt very excited because it was aimed at breaking the current industry. The dual nature, its currency and its assets, allowed it to simultaneously become a tool, effective in the blockchain ecosystem and in people’s daily transactions. So my advice is for investors to consider and not miss this opportunity. Discover a new trading era with unique Drag and Drop strategy builder.”

User on Discord

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Cryptobotone

This is a trading tool suite that comprises an array of software to help the trader automate their activities. These are mainly bots, scripts to enable you build your own bot and make adjustments and extensions that enables tweaking of strategies.

Class of Software – Arbitrage bot

Features – This platform comprises arbitrage bot that trades on 10 exchanges. Its ping pong bot covers Binance, Bittrex, bitmex and Bitfinex. Some of the features are take profit and stop loss. There’s new coin listing notification alert for Bittrex and Binance.

Trading Strategies – Versatile and customizable. If you have idea of a bot you want to be built, this platform could help you do that. Ping pong strategy cuts across the exchanges.

Is Margin Trading Available? – Yes

Supported Exchanges – Bittrex, Binance, Poloniex, BitMEX, Yobit Bitfinex, ZB, Gate.io, Bilaxy.com, IDEX.market, HitBTC, Kucoin

Pricing –  0042 BTC monthly – 0.15 for Lifetime License

Installation – Window x64, Window x86, Linux x64, Linux x86

Supported Languages – English

User Comment

“I purchased CRYPTOBOTONE PING-PONG. I got the licence code within minutes and setup time was neither more. Although the GUI is simple, I would love to see any documentation and/or a way to reach out to You, CRYPTOBOTONE developer(s), because I am still waiting for any answer to my messages.”

User on BTT

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Cryptotrader

This is a bot marketplace where you could build your own bot from your own concept of strategy and monetize. The platform has been around since 2013 and brings years of experience to the bot-making industry.

Class of Software

Features – Programmers with coding skills for trading can build any bot of their choice using technical indicators as guide. There are also SMS alert and to multiple trading instruments.

Indicators – General TA

Trading Strategies – personalized

Is Margin Trading Available? –

DCA – No

Paper Trading – No

Backtesting – Yes

Supported Exchanges – Bitfinex,

Demo – Yes

Pricing – from 0.0023 BTC/month to 0.0276 BTC/month

Installation – Cloud-based, no need for downloads or installation on devices

Supported Languages – English

User Comment

“Based on the review you link it seems that it wasn’t that effective and there are a lot of problems using it as the reviewer has written in it. Then the results were not that great for the price. The price is a monthly thing and it’s not that cheap. The price is too expensive for a bot that doesn’t work that well, but OP said it works for him. Probably it’s a temporary thing or not, just update us if it does work for the whole month.”

User Comment

“Easy Rider closes the trade when the trend has reversed, but not at a pre-specified take profit percentage, in order to gather all the possible profits without stopping the trade too early. Besides, there is a separate take profit option for those users who want the trade to be closed at a precefied profit percentage defined by them according to their trading profile.”

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Apex Trader

Features – Dedicated servers with hosting for the bots ensures that there’s no disruption of trading activity. Configuration entails variables to form hybrid strategies. Bot can be configured to handle different market conditions. Reverse trading function to reduce losses. Signal could be imported externally from Trading View.

Indicators – More than 100 TA factors to choose from

Trading Strategy – This could be configured for specific coin

Backtesting – No

Paper testing – Yes

DCA – Yes

Supported Exchanges – Binance, Kucoin, Poloniex

Pricing – $35/month

Installation – No

The forum doesn’t seem to have much activity, so you have to be sure that you’d have assistance from the support in case you have issues with your bot.

User Comment

“My BOT will not synch with my exchange, it was working up until the middle of last week. I just entered new API code and secret code a different exchange and still it does not synch”

User, ApexTrader forum

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Signal.Network

This is a tools and marketplace platform where traders and can develop their automation strategies as well as monetize them. Though a relatively new platform, it is designed as a melting point for developers, data scientists and crypto traders.

According to the ANN thread prior to its ICO, the team announced that:

Signals network connects cryptotraders with data science developers. Signals will offer a simple UI for assembling indicators and creating signals to optimise profit on various cryptocurrency exchanges. It’s a place where you can build strategies from specific trading indicators, ranging from technical analysis to crowd wisdom insights, train it on historical data, and monetise your strategy by offering copytrading.

Signal Network Team

Features – bot-building platform made for developers, purposely built for data streams. It is a strategy marketplace where algorithms can be developed and monetized. Simple trading model could be created manage trades over one digital pair. Advanced strategies handle multicple coins supported by data from various sources. Users get alerts for potential profitable trades.

Indicators – RSI, EMA, etc

Bcktesting – Yes

Pricing – SGN token is based on ERC-20 project in development

Installation – Android and iOS

Supported Exchanges – HitBTC

Comments

Hey team, the current SetStopLoss and SetProfitTarget methods are set in units of USDT, can they be set in % of price value? That would make it much easier and useful to set.

Signal Network Forum User

Right now you are able to build and run your trading model in Signals infrastructure for free, we are constantly adding new features and improving the platform, usage of SGN token will come with paid features.

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Bipoon

This is a relatively new platform in open beta. So it is important that you approach it with care. In fact, all transactions automated with bots should be carefully done until you’re confident that it is a reliable platform in terms of safety of funds and activation of trade. Bipoon is a tool set for building neural network-based bots.

Features – it is a neural network-based platform that was built specifically for crypto trading. Dashboard tailored toward bot risk management. It boasts a keyboard-driven application – no need for a mouse.

Indicators – preset parameters for entry and exit

Trading Strategies – Just select an algorithm and start the process. This is the only strategy at the moment. Algorithm generate signal that is monitored on the dashboard. Each algorithm is a neural network with its own unique parameters. They can generate completely different signals and be profitable at the same time! you can set up “Bot Targets”: 1/ realized profit you want your bot to reach and stop trading. 2/ realized loss – max loss you can afford trading with this bot. It’ll also stop trading when loss limit is hit.

Demo – Yes ( on BitMex)

Backtesting – Yes

Installation – Web application, no need to download

Pricing – FREE (at beta testing stage)

Supported Exchanges – Kraken and BitMex

Trading Pairs – presently supports 11 trading pairs and Neural Network

User Comment

“Anyway I strongly advise to track algorithm performance (keep it unlearned for a quite long period) to get an understanding where are the limits of profitabilityIn our case learning process is something that the user is in charge of! Our responsibility is to Learn, Assess equity on history and Decide whether to put in a trading pipeline or send it back to school:)And apply appropriately risk management”

Forum user

User Comment

“I’ll re-check this, thank you. Back testing is quite good results, running demo now”

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CryptoPHP

This platform has been around since 2017. Since this was during the bull market, its effectiveness would be adjudged based on user experience in a bear market and the ability to tweak its settings.

Features – ease of configuration as features are accessible from menu. All trades can be monitored to know when to buy and sell. Trades made with crypto signals incorporated on the platform. There’s an easy stop loss configuration. VPS for your personal bot ensures uninterrupted trading.

Indicators – Bittrex and Binance

Trading Strategy – you can use signals from your own provider to create a trading strategy. DCA, Scalping, Trailing, Take profit, Stop loss 

DCA – Yes

Pricing – $12/month

Installation – web interface that needs no downloads

User Comment

“Works well so far, amazing how easy it was to configure. I`ll come back with a reply in a week or so.”

User Comment

“Recent signal on BTC-MATIC from CPHP says it has reached the target. However, it is not sold in my bot. What can be the reasons for that? The order didn’t manage to be filled? It’s on Binance. The price increase looks like a spike on 1m timeframe”

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ARBI Bot

This is a high-frequency triangular arbitrage bot that takes advantage of differences order price of a coin or market inefficiency to make profit within an exchange. This gives it an edge over inter exchange arbitrage trading since it avoids the risks involved in it. Theoretically, this bot is said to have the capacity to make 500 transactions a minute.

Features – Trades are controlled from the browser. The lightness of the bot makes it fast to ensure that arbitrage opportunities are not lost. Indicators – Price Line, Volume Multiplier, DSB, Trend Monitor are used to filter the event as parameters. Telegram notification, easy change in settings, profit monitor and automated arbitrage scanner are other features of the platform.

Trading strategy – The bot maintains consistent connection with the exchange and executes arbitrage events as soon as they arise in real-time.

Base Currencies – 14

Backtesting – No

Demo – Yes

Supported Exchanges – Poloniex, OkEx, Yobit and Binance

Installation – to run on VPS or dedicated server, you’d need 1 Core CPU , 512MB RAM on Ubuntu. Works on Linux and Windows OS

Pricing – Single License, $250, Double pack, $500, Quad Pack, $700

Comments and feedback

“This is a good that works well with a small investment. The arbitrage strategy is relatively low-risk as well, which is a nice plus. I bought this when I first got into trading bitcoin last year, and it has worked well for me. Like any tool it requires regular maintenance to make sure it’s running smoothly. The developer provides fast support on telegram (he’s usually on there watching chat at any given time).”

User Comment

“I have been using this bot since about a month. I struggled at the beginning to get it run, but I only had to ask, and had a supportive response almost immediately. The longest I had to wait was about 3 hours.
I did not make any trades for a while. Its settings are not that clear, so, if you are not an expert, give yourself some time and don’t be afraid to ask. You won’t receive straight setups, but every explanation counts. And when you have your first trade, it’s great!

I am running the bot successfully since 2 weeks, and I almost have made 10% with it. I think if you are realistic, and you want to learn something valuable, this bot is a great start.

I use Poloniex primarily with BTC base, but the movements are more than impressive on the USDC base too. I found a good VPS, with 0.2-0.5 ms response time, so I think I will keep this for a longer time.”

Comment on BTT

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TradeSanta

This is a cloud-based automation platform that promises to help crypto traders make it a full-time job.

Features – Real-time tracking, bot templates, transparent analytics, Telegram notifications

Indicators – Bollinger bands

Trading Strategy – Long and short strategies to take advantage of various, market conditions. Its Smart Order is designed to buy/sell a specified amount of crypto at certain price level, within a period of time (TWAP) or as a percentage of total trading volume (VWAP). You just need to choose a pair you’d like to trade and specify the amount. TradeSanta bot will take care of technical aspects placing orders and keeping them on top of the exchange’s order book. This feature is especially handy if want to buy/sell a large sum of crypto.

DCA – Yes 

Demo – No

Pricing – Free Trial, Basic, $15/month, HitBTC promo $20/month, Maximum, $100/month

Supported Exchanges – HitBTC, Binance, Bitfinex, UpBit, Bittrex, Huobi, OkEx, BitMex (coming soon)

Installation – Available in Apple Store and Google Play

Comments and Feedback

“I have been using Tradesanta for around 3 months and I can definitely say it’s a reliable service.
Setting up a bot is pretty easy and you’re going to find a lot of support in their telegram group.
I haven’t experienced any server downtime when i used it. There were only some minor bugs that can be neglected. In any case, getting good results depends on your own settings and chosen trading pair – like with all bots! There is no trading bot you can set up once and leave it open forever. You will need to adjust according to the current market situation. All in all i had some good results using the Bollinger Bands signal with BNB pairs on Binance.”

Comment

“Stop loss will be activated when unrealized loss will reach the value you set in the stop loss field, and the bot will sell unsold coins at market price. After stop loss is executed the bot will stop. For example if you buy XRP with BTC and set stop loss to be 1BTC, stop loss will be activated if your unrealized profit and loss value in this cycle will be -1BTC.”

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History of trading bots

What we know today as bots or automatic trading system (ATS) has been around in its most basic form since the 1940s when Richard Dunchian used set rules to purchase funds. However, modern bots as we have these days came to limelight in the 1980s when a popular trader, John Henry applied a similar strategy in trading stocks. Since the 1990s, fund managers have increasingly used automated trading algorithm to manage the funds of client but the increased attention that bots have received in recent years is mainly due to advancements in IT.

Private automated trading has been used in the forex market and most recently in the coin market. Automated trading platforms are becoming common as primary cryptocurrency exchangers are giving traders more room to explore the market and electronic order book. It is important to understand that bots are mostly projects in development as eloquently captured by the Codex. According to them,

“An automated trading solution contains at least THREE main components:
– indicators
– configuration
– trading engine

People often say “bot”, but mean “solution”“bot” and “solution” are two different terms. A “bot” is a tool. A “solution” is a system that uses tools, bots and others (!), to gain. It is important to see the difference, and not to judge a bot using the criteria of a solution. There is no “the best choice” because the bot or bots that is/are the most profitable to use is/are the result/results of a complex function. More often than not, people who say, that they would like to get a setup, really need a solution.”

Codex, BitcoinTalk

In essence, a good bot would do a lot in the right hands since they mostly are just tools that perform based on the expertise of the user. Over time, as AI controlled bots are developed, this narrative could change. But what is obvious is that such bots would not be readily available to public since the owners would likely take advantage of the edge it gives them over the market.

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Strategy To Win Every Trade

Have you ever wondered if there is a simple strategy that a trader could apply to win every trade? Since this is what every trader wants, especially those who are new to trading, I’d like you to have a look at Quickfinger Luc’s strategy of winning every trade. Perhaps, you could apply it to your bot trading and make it a success. Check his video here.

Copy Trading for Beginners

There are many traders that have been trying to make a success out of their trading activities but haven’t been able to do that yet. It could be that they are new in trading, or they just don’t know how to read the market well. For such traders, I’d recommend that they adopt copy trading to get good results. This is basically following the trade of experienced or professional traders and getting the exact result they get. There are many copy trading platforms but this is my top recommendation.

Conclusion

There is room for every trader whether they’re experts or beginners. However, the most important virtue that any trader could imbibe is education – learning everything they could to trade effectively, bearing in mind that the opportunities offered by automation can best be utilized by traders who have developed good strategies.

Interestingly, a sub-niche of bot strategists is growing. These are people who are experts in setting up good bots. Remember that bots are not born equal. Also bear in mind that there always are risk associated with using unknown random bots. But with a good bot, you can be sure that your trading is made easier.

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Author: Jofor Humani

Peddling words has been a passion beneath the surface. I speak less than I write...naturally. Aside speaking and writing, I walk too...good for your heart they say. I sometimes do not feel like writing. Then I enjoy quiet times which I use to think and stay with family.

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