Janny Kul
Best Crypto Trading Bots Ranked · The Ultimate Guide


Everything you need to know

The sponsored posts you’ll find on Google comparing Crypto Trading Bots mostly focus on features, cost, and supported exchanges. If you’re interested in this information you can find them here, here, here and here.

Here’s why none of these matter.

Features don’t matter because quite frankly who cares if you can “use a simple moving average crossover to trigger a trade” if that’s not producing profitable results? The more features that exist, the more likely you are to configure something that produces unfavourable results.

One of the trading strategies we have at Credium analyses 15min bars and produces around 50% annual returns. If you change the periods to 5mins instead it loses 20% a year. Because of this it’s unlikely we’d ever let you configure that parameter.

Supported exchanges don’t matter because when you’re running a bot you need to focus on execution costs, liquidity, and slippage. There will be an optimal exchange for profitability based on which strategy you’re using. The best bots will dynamically pick an exchange based on whichever makes the most economic sense for that particular trade on that particular strategy.

This notion of putting every trade through a single exchange gives away valuable upside.

Cost matters at the point where it starts to effect your profitability but not before. If a company offers minimum deposit of $200 but they charge $20 a month ($240 for the whole year), are they really a platform that will act in your best interests? If they make absolutely no profit, in 10 months your entire starting capital will be wiped out. In other words you’d need to make 120% PER YEAR in order for you to just break even.

They’re literally just setting you up for failure.

At Credium our pre-launch offer is $145 lifetime cost with a $1000 minimum deposit. If you amortise the cost over 5 years ($29/year) your platform fees work out as 2.9% annually if you deposit the minimum.

The entire purpose of using a trading bot is to give you better risk adjusted returns than just holding the underlying asset.

If you could get better (risk adjusted) returns just buying and holding, then you have absolutely no reason to use a bot whatsoever. Just go out and buy a little bit of each coin and do nothing else.

(I’m not advocating this as an investment strategy because unlike stocks which have intrinsic value and produce economic output, therefore will go up over long periods of time, cryptocurrencies do not).

The point really is that you’d be financially better off doing that than using a bot.

So,

The metrics on which we’ll be assessing the bots will be:

1. Team Strength

Bill Gross found that the team is one of the most important factors in start up success.

An independent study by AIMA found that “Recruiting and retaining the right staff is vital to [Hedge Fund] success

When choosing a bot platform to look after your money, you should probably ask yourself:

What is the professional experience level of the senior leaders of that firm?

If they haven’t managed >$100m and have a good track record doing so, it might be an idea to bat on.

Test #1: What is the professional investment experience of the team?

2. Profitability

Are bots already preconfigured to be profitable out of the box or do they just clip some skis on you and push you down the black slope?

The easiest way to look at this data without us actually downloading and spending all of our money on platform testing is to look at public forums and count the number of positive vs negative reviews and then just normalise them against each other to produce a relative score.

Test #2: What is the profitability from publicly available reviews?

Are their algorithms widely known and openly available to anyone?

Hint:

If they’re giving you trade-level data, their algorithm can quite easily be replicated. If so, whatever “edge” their bot has will be quickly whittled away through Alpha decay.

If you can access other people’s trade level data within the platform then this compounds the issue.

Test #3: Is access to valuable trade-level data protected?

3. Aligned Interests

What is the monthly cost as a percentage of the minimum deposit? If the monthly costs are high relative to minimum deposit then it’s quite clear the company care more about getting more fee-paying users than they are about them actually making money from their platform.

Test #4: What are the returns needed to break even?

Do they have a variable fee structure? As in, are they willing to reduce their monthly fee if their strategies are unprofitable? Are they compensated more if clients are profitable?

Test #5: Are they incentivised to perform?

5. Customer Support

When something goes wrong (and it will) how easily can we get hold of support and how quickly do the team tend to it?

Test #6: Is it easy to find their support email address?

The test for speed is simple. Crypto’s are a 24/7 market. Therefore it’s conceivable that you’d need support over the weekend.

So,

Sunday at 4pm we set up a brand new email address and emailed all of the companies. We picked this time because a lot of geographies waking hours overlap here. The quicker they reply the more points they get. If it’s hard to find an email address then we deduct points.

email sent to every company at 4pm GMT on a Sunday

Obviously the response we’re expecting is something along the lines of.. “we can’t find you in the system” but thats cool. Works perfectly for the purposes of this test.

Test #7: How quickly do they respond to support-based emails?

The TL;DR first:

What are the best crypto trading bots currently available?

Out of the 17 platforms that we tested, the top cryptocurrency trading bot platforms available are Margin, Shrimpy and Credium. We devised seven tests to measure each platform on bot profitability, customer support response speed, aligned investor interests and founding team strength.

The highest scoring out of these factors is Credium however this platform hasn’t launched yet and it only scores this high because of favourable pre-launch pricing.

Here is a table summary:

Below is a full analysis of the top 3:

Test #1: The Team

Founder has a strong track record in tech, finance, and Quantitative Trading. Senior advisory team has a strong track record in finance. 5/5.

Test #2: Profitability

Currently Credium’s algorithms generate strong positive returns but as we aren’t up and running and don’t have publicly available reviews, this factor gets a 3/5.

Test #3: Alpha Decay

All algorithms are run on our own dedicated servers and no single exchange has access to our strategies on a trade level. 4/5.

Test #4: Expense Ratio

We have an account minimum for the pre-order members of $1000. This equals an expense ratio of less than 3% when amortising the platform fee across 5 years. The account minimum for regular members is higher. 5/5.

Test #5: Incentivised Performance

Our pre-orders have incentivised performance baked in; if we’re not profitable after the first 90 days you get a full refund of the lifetime license. 5/5.

Test #6: Support Access

Support email address clearly visible on every page of the site plus live chat functionality. 5/5.

Test #7: Support Speed

Our support team weren’t versed that I’d be testing them this evening. Feel free to try this experiment for yourself! 5/5.

Overall Credium.io scored 4.6/5.

Test #1: The Team

I hunted down Shrimpy’s team on LinkedIn. The background of the team is pretty strong. CEO is an ex research scientist at NASA. They have an accomplished VC as advisor. However, no finance experience. 4/5

Test #2: Profitability

Quite a few reddit posts like this going through:

People seem largely happy with the free index rebalancing features. I think it’s great they provide this for free because any fee really eats into your performance if you’re index tracking. I talk about this more here. 4/5.

Test #3: Alpha Decay

There’s no trade level data protection at all. 0/5.

Test #4: Expense Ratio

Shrimpy have a completely free tier which is fantastic. In this free tier you can essentially run your own index fund. You set the weightings yourself and the rebalancing periods. 5/5.

Test #5: Incentivised Performance

Yes. They have a generous free tier so make money if you upgrade. 4/5.

Test #6: Support Access

Their email address is in the footer of every page so super easy to find. 5/5.

Test #7: Support Speed

They took 114 mins to reply to the test email. 4.5/5.

Overall Shrimpy scored 3.8/5.

Test #1: The Team

Team listed on site. No finance experience but CEO & CTO both have PHD’s and senior team is experienced. They also seem to have worked together at Citec so thats good too 5/5.

Test #2: Profitability

Didn’t really find much aside from the below but generally no news should be good news here.

I went for Margin and I’m very happy with it, they are indeed trustworthy and very keen of every idea and request I made for the app. — Reddit user

4/5.

Test #3: Alpha Decay

Again, there’s no trade level data protection at all 0/5.

Test #4: Expense Ratio

Their plans vary in price based on the assets you want handled by their platform. They’ve obviously taken care and consideration and if you have a smaller amount of capital then platform fees need to be lower, 4/5.

Test #5: Incentivised Performance

None 0/5.

Test #6: Support Access

They lose points here because they don’t list their email address on the platform. I found a web form instead. They do have live chat though which is good. 4/5

Test #7: Support Speed

A little over 2 hours to reply to our support request on a Sunday, 4.5/5.

Overall Margin.de scored 3.1/5.

Here are links to positions 4 to 17 in order:

Cap.Club

Autonio

Cryptohopper

Livetrader

Zignaly

HaasOnline

HodlBot

CryptoBot (GUNBOT)

Bitcoin Robot

CoinBot

3Commas

CryptoTrader

Exchange Valet

ProfitTrailer

There are a couple of open source solutions that I’m not going to go into in too much detail because if there was ever an open source solution to a profitable trading bot, the Alpha would be arbitraged away very quickly. The lure of free ends up being quite a large price to pay.

If you want to do your own research here they are:

Gekko

Zenbot

Naturally I’m going to be bias whilst writing this and of course I’m going to pick factors that I care about the most which is why we performed so favourably.

But I do genuinely think all of these factors are more important than what other guides focus on.

This is exactly why we started building Credium in the first place.

If you believe the same then feel free to join us and get started with our crypto trading bots.

Also, please let me know if I’ve made any mistakes. If you have a different experience with any of these platforms or you believe there are more important factors that I’ve left off then please don’t hesitate to get in touch and let me know.

Peace ✌🏼

Disclaimer: Do your own research. Cryptocurrencies are inherently risky and your investments may go up as well as down.



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