Hello all, it is I, the Dragon. I am writing another bot automation review, if you have not checked out my first one, here is the link to it: Dragon’s first bot review on Nazca. I am writing today for another review of a platform, this platform is called Cryptohopper. Cryptohopper has a lot of customization options, and is a bot trading platform where you can set strategies based off of technical analysis indicators such as RSI, or Bollinger Bands. If those terms do not make sense to you, do not fret. Cryptohopper is a very user friendly platform that most can setup, with little knowledge of trading bots. I like to write articles on platforms that offer a user friendly approach to algorithmic trading, which both Nazca and Cryptohopper do.
Before diving head into the setup guide review of this bot platform, I want to say that this platform is pretty powerful, and there are an incredible about of customization options. I am going to be setting up the BARE minimum of a bot throughout this guide to help give you an idea of how to get started. The strategy I am going to use to setup this guide review is a basic Exponential Moving Average strategy where the bot buys into positive momentum. There is a learning curve with this bot as there are with most platforms, and I did lose a good amount of money at first tinkering, and trying to figure out what worked best. I just wanted to reiterate that the platform was powerful, and the guide is to give you a basic educational understanding of the platform, and is in no way financial advice.
For the purpose of this review I want to also provide a little guide along the way. I will show a basic setup of an EMA strategy, as well as backtests along with that. EMA stands for Exponential Moving Average and is a technical analysis indicator that can be used to judge price movement and market momentum. I would not suggest copying this strategy (while it may be profitable) I would suggest to do your own research, and I would say that most of the strategies I have had most success with consist of 2-4 indicators at once to execute a buy/sell, for the purpose of this guide I will only be doing a setup with one indicator. This is not financial advice, nor should it be interpreted as such, this is purely educational.
The first month is free, and you are able to use their “Bunny” subscription plan free for a month. After that month, the paid monthly fees are $20, $50, and $100 per month. The next step in the setup process is to create a free account, choose your username, and then confirm your email.
Simply then use the startup wizard to begin setting up your trading bot. You start by selecting the exchange of your choice, I am using Binance in this guide. If you are looking to create a new Binance account my referral link is here.
Once you select the exchange of your choice then you will need to setup the API keys, likely creating a new key for yourself. You will then be prompted to either select a premed template, follow signals, or configure your own strategy. For this guide / review purpose I will be selecting configure my own strategy, as this is always the option I select. I cannot speak for any of the pre-made strategies or signals as that is part of the platform that I have not explored. Make sure these keys do not have the permission to withdraw, there is no need to give Cryptohoppper that permission. API keys should be able to read / trade.
I normally select “Configure yourself” which will bring you to a screen where you can name your bot, select the base currency it will be using, and select the coins that it is allowed to trade with. I normally select for the base to be Bitcoin or USDT, for the purpose of this review guide I will be using Bitcoin as the base. After all, alts are just around to make more Bitcoin, right?
The next step in the setup process is pretty important, after setting the allotted and minimum balances for your Bitcoin, you will set the buy percentage. The percentage buy amount determines how much of your balance will be used on each trade. I would suggest putting this at 1-2%, as that is a general rule of trading, risk management, etc. All of these settings are up to you to change, I am just walking you though how I normally go about setting it up. I am using 2% for the purpose of this guide review and normally use 1-3% on my trading bots.
The next step is to move into actually selecting the strategy, and setting where your bot should buy. To do this, click “Custom (advanced)” under strategy settings and then to setup a basic EMA strategy set the EMA short period at 9 and the EMA long period at 20. I will include some backtests of this strategy below as well to show past profitability. Setting the EMA as necessary for the a buy signal is imperative because it is the only indicator that this strategy utilizes.
Another important note from the settings above is my time frame. Using a 4 hour time frame means that the bot will not be executing trades as frequently as it would if you had the time frame set on something like 30 minute candles. For more risky/high frequency strategies I normally set a smaller timeframe, anywhere from 5m candles to 15m candles. For less aggressive, more methodical strategies generally the 2-4 hour or daily candles are used. For this setup guide I have left the time frame at 4 hours.
For now, you can set the sell settings at 1.3% profit, but I normally go back in later and change my sell settings. I will share what I change and why I change the sell settings later on.
Success! The Cryptohopper bot should be ready to be deployed. Now we will go in and change the sell settings to something a little more preferable when trading (in my opinion, not financial advice). Navigate over to where it says “Config” and then click on “Baseconfig”. Under this you will see the bots settings, and under “SELLING” click on “Trailing stop-loss”.
Instead of using the “Take profit” sell that we set earlier in the settings, I prefer the trailing stop loss. I with this to “Use trailing stop-loss only” instead of using the take profit at a fixed percentage. The trailing stop loss helps a dynamic sell. The trailing stop loss arms (or turns on) when the trade has reached 4% profit (as indicated by the screenshot above). Once armed at 4% profit, the trailing stop loss will be placed 2% below, and continue to dynamically move up or down as the profit changes. This helps catch a pump if there is a quick spike up to +10% profit, I will already have a stop loss placed at 8% profit. If my explanation does not make sense here or you are new to trailing stop losses check out this video here: https://www.youtube.com/watch?v=3Mru8D_7qVo
I ran a backtest of Monero and Zcash throughout the same time period midway through July testing this EMA strategy I have deployed on the “dragonSlayerBot”
To understand what is happening on he graph is that is a price chart for Monero (XMR) from July 1st to Jul 24th. Each green line indicates the bot bought a position of XMR, and a red line indicates that the position has sold. Throughout this time period there were multiple positive sells. With bots you are not searching for the 3x or 4x, you are looking to compound small gains over time. These backtesting results are what you want to see when you are backtesting, small compounding consistent gains overtime. Like I said the EMA strategy that I have setup on this guide is the most basic you can deploy, but sometimes simplify is effective. Here is another backtest on ZEC throughout the month of July as well.
Similar results here from ZEC throughout the July time frame, with the green lines indicating a buy and the red lines indicating a sell. Multiple sells for profit here, the profit is larger than the XMR sells as well. This is another positive backtest using the EMA strategy.
Cryptohopper is a very powerful automated bot platform. Thanks to their interface, it is truly a plug-and-play bot where you do not need any coding of technical background to setup. I would suggest you have at least $1,000 USD (or crypto equivalent) in the exchange to use the platform.
Do not be afraid to reach out if you have setup or general questions about Cryptohopper or Nazca. I have helped multiple people get going on automated strategies and continue to do so. Algorithmic trading is something I am passionate about so I hope that this article was able to give you insight into another automated bot platform.