Testing Cryptotrader Automated Cloud Based Trading Platform

11 Feb
2014

cryptotrader-org-homepage

Cryptotrader is a cloud based online algorithmic trading platform for Bitcoin and other cryptocurrencies. This service allows traders to backtest and automate their crypto trading strategies via a flexible built-in scripting language based on Coffeescript. Trading strategies can be fully automated by using trading robots running on a scalable VPS cloud service, meaning that you do not have to have a computer on all the time with a trading software running on it. Cryptotrader does support MtGox (BTC/USD and BTC/EUR), Bitstamp (BTC/USD), BTC-E (BTC, LTC, NMC, XPM, PPC) as well as CEX.IO (GHS/BTC, NMC/BTC and LTC/BTC). The service is subscription-based with various levels offering different features and pricing methods. There is a limited backtesting support available for free to registered users. We decided to give the service a try mostly because of the fact that it does support CEX.IO trading and we were interested in checking some automated bot trading strategies. Below you can read our review of the service that we’ve already used for a few days…

cryptotrader-subscription-plans

To be able to really try the service you will need to subscribe for a Basic license that costs $8 USD per month as this will give you access not only to full backtesting access, but also the ability to run a single simulated trading bot. If you want to be able to actually trade with real crypto coins or cash in a supported exchange you will need to go for at least a Basic+ subscription plan tat is priced at $24 USD per month… this is the plan we went for to test the service. The other more expensive plans offer extra features such as more bots and higher trading account equity limits, but if you want to try out the service yourself we would recommend to start with the Basic+ plan as we did and then if you decide to keep using it you can upgrade to a higher plan.

cryptotrader-backtesting-vs-real-trading

The idea behind Cryptotrader is that you can program your own bot with a trading methodology of your own using some readily available tools and a simple to use scripting language. However you do need to be good enough in market technical analysis and have a bit of programming skills in order to program your own bot, so it is not as easy as you may initially think. There are also a lot of users that do share their trading bot code for everyone to try out and optimize, which is the easier way to start using the service, however it is also riskier for you. Most of the trading bots shared are not finished and polished, so by using these you may end up loosing more than earning, furthermore they are not well documented, so that you could easily tweak them for better performance. One of the things that is common for most of the publicly available bots for trading at Cryptotrader use all of the coins and money you have available on the exchange and you should be very careful starting actual trades with these if your account does have large amount of these. Also as you can see from the example on the photo above doing backtesting on a automated trading bot on already available market data can differ a lot compared to actual trading with the same code as there are many factors that influence the results such as large buy/sell orders not filled completely and timing out.

Our testing of various publicly available automated trading bots that show decent profitability during backtesting has shown not so good results with actual trading and so far for already a few days of testing the service we’ve gotten quite used to the code and can further improve and optimize the code publicly available and trading on CEX mostly is still resulting in general minor loss of the starting balance. So we would advice not to go for trading just on the CEX exchange using Cryptotrader and if you are not sure you are going to be able to write your own trading code to better avoid that service as it is not for everyone and most definitely not designed for normal users. We are still going to play with the service until our one month plan is over, but after that we are probably not going to be renewing it and are instead going to try some other alternatives that we still haven’t tested yet. You are of course welcome to try out the service yourself, just be warned and be aware that it is not for everyone and most definitely not for normal users without decent trading experience and programming skills!

For more information and to try out the Cryptotrader automated trading service yourself…



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1 Response to Testing Cryptotrader Automated Cloud Based Trading Platform

jeison herra

October 6th, 2014 at 04:52

is scam?

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