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Top picks for trading bots in 2021 | by Syed Shoeb | The Capital | Jan, 2021

Understanding why you should consider using a trading bot?

Syed Shoeb

Simply put, you should choose a bot to make trades because that is the only way you can consistently earn!

Making money from markets is really really difficult. 96% of retail traders lose money. After spending countless hours in front of charts trying to look for ‘good entry points’ I can vouch for this. The problem is magnified even further in crypto simply because there are 100’s of exchanges, 1000’s of crypto markets, and each market is 24*7. Making sure that you are trading correctly is really hard!

Everyone is not meant to become a trader, and everyone shouldn’t try it too. This is exactly why I believe that a vast majority of us should focus instead on investing, and algos and bots are one of the best places to park your money.

There are broadly two categories of bots

These bots take trades because they think that the market is going to move in a particular direction. They take positions, both long and short, and try to beat the market over multiple market cycles. Naturally, the long-term returns of these bots are much higher, but at the same time, there are chances of losses. This is where risk management and profit-taking becomes very important.

These bots take short term trading decisions purely on the basis of how price movement is in the very short term. They aim for low stead returns, but a lot of times are hit hard by fees.

Most bot platforms offer a mix of both. There is a large variety available in directional bots and most people.

There are three things that are important to consider before picking a bot to invest in.

  1. Is the platform safe and reliable and easy to use?

Any platform might have great trading bots but what is more important than the bots is to see if the platform itself is good or not. It is important to consider things like:

  • Who owns the platform?
  • Do they have a community?
  • How long have they been around for?
  • Are bugs and user issues quickly resolved?

2. How good is the bot?

Surprisingly, even in 2020, the crypto market is filled with scams, inefficient, and painful to follow signal groups and doggy signal marketplaces. This is why judging the quality of the bot itself is also very important. Some points to look at before deciding to invest is

  • Transparency of information
  • Stable predictable returns
  • Past track record
  • Risk management
  • Low costs of fees relative to expected returns

3. What are you looking for?

This is perhaps the most important question. The key to investing successfully is not to make the highest returns but to get returns as per your expectations. There are 100s of crypto bots out. Some of them will give insane returns for a short period and will then take everything to 0. Other kinds of bots that will not do anything for months and then one fine day give you an amazing signal to enter. Yet another kind that will give you consistent low returns without any risk. So before you jump in, you need to know

  • What is the risk you are willing to take, and what returns you can get?
  • How long are you looking to invest?
  • What amount are you looking to put into these bots?

While creating our ranking, we looked 100’s of bot platforms and 1000’s of individual bots and created a simple scoring method based on three things:

  • Platform Reliability: We gave each platform a score from 0 to 5, 5 being the best, based on who has built the platform, what kind of bots they support, how long they have been around, etc.
  • Bot Quality: Each platform has its own USP. Some support only directional bots, other support only signal groups, etc. We created a rating from 0 to 5 based on the quality and diversity of bots available so that you can find a bot always.
  • Ease of use: Using platforms is non-trivial. Some of them are really complicated, while others have a simple one-click investment setup. We ranked every platform from 0–5, 5 for the best, on how easy was it to get started.

Before we jump into the rankings, here is a discount

Get 25$ credit which you can use for fees when you join Mudrex

Platform Reliability — 4/5, Bot Quality — 4.5/5, Ease of Use — 4.5/5

Y-combinator backed Mudrex outshines everyone else in the list!

Mudrex makes investing in crypto bots as simple as investing in a mutual fund. They are very transparent about their info, have a wide variety of bots based on our risk appetite and a pricing model that is by far the best we have seen.

Mudrex has over 7000 users and over 400 Mn USD traded on it. They are backed by well known VCs and angel investors and have a very active and engagged community. They are connected with 8 of the top exchanges and are some of the very few on this list who are able to support US customers as well.

Mudrex does not build its own bot but instead has a curated marketplace of bots created by pro traders. The best part about the platform is that all info regarding the performance of a bot is public and easy for users to understand.

If you were looking for a platform using which you can invest your crypto, then Mudrex might just be it!

You can also read an in-depth review about Mudrex here.

Platform Reliability — 4.5/5, Bot Quality — 4/5, Ease of Use — 3.5/5

3Commas is one of the most famous crypto trading bots. I put it on the #2 on the list because the UI is more for a professional trader. As their users become more and more professional, they turn their product development for pro users.

3Commas has over 33,000 active users. The platform is accessible via desktop or mobile app and provides a dashboard linked to leading crypto exchanges. Users can execute their trades using the platform’s SmartTrade terminal, which lets users set trailing stop loss and take profit targets.

Platform Reliability — 4/5, Bot Quality — 3.5/5, Ease of Use — 4/5

The best part of Quadency is the backtesting feature, with which you can do it based on data and numbers instead of shooting it in the dark. It’s also the most important feature for crypto trading bot; it’s always nice to know the performance upon history data before using your money with the crypto trading bot. Another platform that has this support is Mudrex. They have one of the best backtesting setup apart from Quadency.

Platform Reliability — 4/5, Bot Quality — 4.5/5, Ease of Use — 3/5

Cryptohopper is a paid crypto trading bot. But before jumping into the paid membership, you have a free trial for 7 days in Cryptohopper.

One of the well-known trading bots on Cryptohopper is the market-making bot. It’s similar to the Grid Bot in Pionex, but it’s more focused on profit from the spread on the order book.

Platform Reliability — 4.5/5, Bot Quality — 4/5, Ease of Use — 2/5

HaasOnline is a powerful automated crypto asset trading platform. Unlike most platforms, which are cloud-based, the HaasOnline Trade Server (HTS) must be downloaded and installed on the user’s computer. The platform is designed to run on Windows but it also works on MacOS and Linux. To download and install a company’s crypto trading platform requires a high level of trust.

Platform Reliability — 4/5, Bot Quality — 2/5, Ease of Use — 3.5/5

Pionex is the exchange with the in-built crypto trading bot. It’s one of the best trading bot platforms for cryptocurrency I’ve ever seen since 2017. It aggregates the liquidity from Binance and Huobi, and provide a free trading bot upon it. Pionex offers bots designed specifically for grid trading which is a pseudo market neutral trading strategy.

Pionex is safe and has been granted the MAS and MBS licenses from Singapore, and U.S. Pionex is the first crypto trading bot on my list.

Read Pionex Review

Platform Reliability — 3.5/5, Bot Quality — 3.5/5, Ease of Use — 3/5

Zignaly is a tool for cryptocurrency day traders who want to automate their trading strategies. Make your strategies on TradingView outsource it Zignaly to trade for you on five major crypto exchanges such as Binance, Bittrex, Poloniex, KuCoin, BitMex.

Zignaly provides its real-time data to the public on its website. According to their data, they’re small to mid-size in the crypto trading bot industry.

You can choose from different plans in Zignaly, which they built for a different level of traders.

Platform Reliability — 3.5/5, Bot Quality — 2.5/5, Ease of Use — 3/5

Coinrule is the ultimate crypto trading platform for beginners. The “if-this-then-that” rule logic allows even less advanced traders to build their trading strategy in a minute. The user-friendly interface guides users in building the trading bot step-by-step.

The template library includes over 150 pre-set rules that help beginners running the trading system that suits their needs. The platform allows different trading strategies, including stop loss, take profit, and integrates the main technical indicators. The list of trading strategies that Coinrule allows is limitless and the company posts regularly new ideas in the Knowledge Base of the platform.

Coinrule would have rated higher but a lot of the features they provide are better implemented by Mudrex.

Platform Reliability — 3.5/5, Bot Quality — 2/5, Ease of Use — 3/5

You can use TradeSanta on eight main exchanges, Binance, Bittrex, HitBTC, Bitfinex to help you trade simultaneously on them.

You’ll need to pay from $14 to $70 per month according to your package.

One of the features I’ve tried with TradeSanta Trading Bot is the Grid Bot. Pionex, Bitsgap and BitUniverse have already provided the same feature for free, so if you’re here for grid bot, I don’t see it necessary to purchase the package.

Platform Reliability — 3/5, Bot Quality — 2/5, Ease of Use — 3/5

Bitsgap is best known for its unique automated trading bots. Thousands of traders with different experience and skill sets are using Bitsgap on a daily basis to maximize returns by automating their trading.

The algorithm implemented by Bitsgap is based on a simple and effective technique, called GRID. It distributes investment proportionally within a trading range predefined by a trader. This is similar to the setup Pionex and TradeSanta provides.

Disclaimer: Content sourced from Edul Patel Blog. This is not financial advice. The article does not promote/demote any company/bot. Opinions, statements, estimates and projections in this message or other media are solely those of the individual author(s).


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