Cryptohopper Best Strategies

Cryptohopper is a reputable trading bot platform that provides a secure environment for earning passive income in crypto markets.

Traders using Cryptohopper can access innovative features to manage their portfolio, automatically analyse the markets, copy other traders, and use advanced tools like arbitrage and backtesting.

This article discusses in detail some of the best Cryptohopper strategies that will make your trading profitable (and fun)!

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Automatic Trading | Cryptohopper Best Strategies

Commonly referred to by many as the holy grail of trading, automatic trading is probably why you clicked on this article in the first place.

This ground-breaking trading strategy has been unavailable to traders for quite a while for the simple reason that it is very complicated. The good news is that Cryptohopper is dedicated to making automatic trading a breeze.

There are 3 main ways to begin your automatic trading adventure – semi-automatic, copy, and fully automatic trading. Each has its own difficulty level, as we’ll see below.

Semi-Automatic Trading

Traders who are not yet ready to explore the world of algorithms and algorithmic trading will find semi-automatic trading useful. If you like to keep buying decisions to yourself, you will also like this type of trading.

You will be responsible for doing your own analysis on the price and opening up trades, but to sell them automatically, you will need to use your Hopper.

Semi-automatic traders have access to several tools to help purchase for competitive prices, sell automatically, and gain decent profits.

For simplicity purposes, we’ll break down the tools into 2 groups:

1. Buying

These tools include Trailing Stop-Buy (TSB), Short, Trailing Stop-Short (TSS), and Dollar Cost Averaging (DCA).

While they may sound a little complex, the features are quite easy to use.

When you purchase, you have no idea if you’ve bought at the bottom. The good news is that a bot can help you know. By using the Trailing Stop-Buy (TSB), you can delay your purchase and monitor the price. This tool will continue monitoring the price down till it goes up, then negotiate the purchase up.

You can conveniently configure the TSB in your Baseconfig, after which your Hopper will continuously use it when it receives a signal or when its strategy signals a purchase.

Alternatively, you can apply it to a manual order by going to the advanced view and configuring it when placing an order.

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If you’ve purchased a position, it dipped, and you’re in loss, using Short, Trailing Stop-Short or DCA could be viable solutions.

DCA is a strategy that averages your purchase price, or comes to your aid when a position is in a deep loss (Martingale technique). The assumption of this technique is that, ultimately, a crypto price will surge, so if you continue doubling up your investment, your average purchase price will be lower, and you’ll make a profit sooner when the price goes up again.

You may need a fat bank account for this method, as you’ll be required to continue doubling down on your investment.

If you’re a beginner, you can also use DCA to invest over an extended period gradually.

You can create manual DCA orders by using the bulk actions from the dashboard or clicking the “view” button on a position and then “DCA”. Doing this also gives info about any DCA history/settings a position has.

When setting up DCA, the most important thing you want to configure is creating a new order and how much/often it should buy.

To configure your DCA, go to your Config > Baseconfig > DCA.

Some helpful settings for DCA include:

DCA buy immediately – Choose this setting if you want to trigger the purchase instantly when the configured percentage loss hits, or simply let the DCA feature purchase when your strategy signals a buy for the coin. Caution! When this setting is on, the Hopper will purchase without using any strategy and could do so at an unfavourable time.

DCA after X time open – If you want to buy automatically after a particular time, pick the timeframe to create positions for DCA orders. This setting comes in handy if you’re going to purchase a certain asset over an extended period gradually.

DCA set percentage – This configuration is the most basic if you’re going to use DCA for positions in a loss. Organise the percentage after which you want the DCA feature in order to place a new order. When the average price dips below this percentage, your Hopper will place a DCA order for the position that is in a loss. Enter a positive number, for instance, 6 per cent.

DCA max retries – When using DCA to cover up for losses, you have the freedom of setting how often you’re going to let it try complete DCA orders. The count is reset after every positive sale of a position where you’ve used DCA.

Shorting refers to the practice of earning a profit as an asset’s price goes down. Cryptohopper’s shorting is, however, a little different from traditional shorting. Here, you initiate a Short when you expect a position to make a bigger loss, and your bot will sell the position. You consolidate your short when you think the price has reached its lowest, and it will automatically purchase back the position.

With Trailing Stop-Short (TSS), it helps you by closing shorts automatically and purchasing back when the price rises again. It’s similar to a buy-back function. Two important settings of TSS are arm trailing stop-short (determines at how much loss the Hopper will begin trailing the short) and trailing stop short percentage (determines how much the price should rise again before the short is put to a stop and the position is bought back).

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1. Selling

Tools like the Trailing Stop-Loss, Stop-Loss, and Take-Profit are ideal for helping you sell.

If you have no idea where the price could go, the Trailing Stop-Loss tool is your best bet. The tool monitors the price and sells your position when the price dips for a percentage. This is a great way to follow an upwards trend and avoid selling too early.

You can configure your TSL in your base config or add it in the Advanced View.

Two important settings in the TSL are the Trailing Stop-Loss percentage (determines how much the price should go down before it sells the position) and the Arm Trailing Stop-Loss (determines when your TSL should start monitoring the price).

While the Stop-loss tool won’t help you make a profit, it will stop further losses. The tool may feel counterintuitive to use, but it’s essential for a trader! For instance, if 70 per cent of your buys are positive and 30 per cent negative, then your stop-loss will help filter out the poor buys. If you ignore using a stop-loss, you’ll end up with “bags.” These are positions in a deep loss that you should have sold earlier.

The Take-Profit tool makes it easy to sell automatically. You just set a per cent profit, which informs your bot when to sell automatically. This is beneficial if you know where supports and resistances in a price lie.

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Copy Trading

Also known as mirror trading, this is when you follow experts on the Cryptohopper platform to decide when to buy or sell.

There are various ways to copy traders:

To full copy an expert, simply subscribe to signallers. These are experts who send out trading signals which makes it possible for your bot to trade automatically. The Cryptohopper marketplace allows you to easily judge the signallers’ performance.

It’s not a must to follow the signals they send, and it’s possible to Semi-copy traders. To protect against deep losses, use Stop-loss. To sell at the right time, use Trailing Stop-Loss.

How to Set Up A Copy Trading Bot:

• First, create a Hopper, then link it with your exchanger
• Go to the marketplace and look for a searcher
• Check the coins for which they send signals
• Check whether you have enough funds in your quote currency to allow your Hopper to buy positions

Trading Automatically with Marketplace Templates and Strategies

Templates refer to preconfigured Hoppers with setting already set up for you. We recommend this strategy if you’re a beginner

If you want additional control, Strategies feature algorithms that examine the markets for you. Feel free to backtest these strategies to check whether they perform okay in the current market.

Algorithmic traders create packages that have technical indicators used to scan the markets. Their indicators consider volume, trends, volatility and momentum. These traders have multiple strategies that work in different markets, meaning they’re unceasingly backtesting to see how these strategies perform in the current market.

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Full Automatic Trading

To take full advantage of full automatic trading, you will need to understand how the Hopper examines the markets and how to utilise all tools.

We have covered the essentials above under Semi-Automatic Trading. The most important thing in full automatic trading is to choose the coins you are going to trade and decide how you will pinpoint the best purchasing opportunities automatically.

• To configure your coins, go to Config > Baseconfig > Coins & Amounts.
• Next, you can choose to pick a strategy that you have downloaded from the marketplace that your Hopper will use to scan the market or build one yourself in the Strategy Builder!
• If you choose the latter, pick the indicators you’re going to use and test your strategy till you’re satisfied. Thanks to config pools, you can even configure a different strategy per coin.

As you can see, automatic trading has a little learning curve, but it’s not rocket science. If you’re patient and consistent, you will ace it in no time!

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Paper Trading | Cryptohopper Best Strategies

Paper trading lets you trade with real-life exchange data using simulated crypto. By doing this, you can experience the Cryptohopper platform without taking any risks.

Every paid subscription gives you the option to create a simulator (or paper trader). This makes it perfect for testing out different strategies on your simulator so that you can use effective strategies on your live Hopper.

In regards to whether the results are similar to trading with real funds, the answer is not really. Unlike real funds that rely on supply and demand, a paper trade hopper looks at the price of the coins. Also, trading fees aren’t included in paper trading.

When you start using Cryptohopper, you’ll be asked if you want to create a paper trading or real funds Hopper. To get the full Cryptohopper experience, we recommend connecting your exchange account.

Creating A New Simulator

To create a new simulator:

• Head to the top left of your dashboard under Your Hoppers > View all your Hoppers.
• Ensure that you do not already have a simulator, as Cryptohopper only allows one simulator/subscription.
• Pick the exchange and the quote currency you want to use.
• The platform has templates meant to give you a jumpstart with trading. After selecting a template, click the “Paper Trading” switch to make it a simulator.
• Now click the deposit button and deposit “funds” that match your selected quote currency.
• Your start balance should change automatically. That’s it!

Paper Trading Accounts

You get a paper trading exchange account that covers all exchanges.

You can choose to use a single exchange per paper trading Hopper. When you use the same paper trading account on the same exchange for 2 paper trading hoppers, you’ll notice the same balance in both simulators.

A simple solution would therefore be selecting a different exchange for a 2^nd or 3^rd simulator. If you do not want that, then you can go ahead and create a new paper exchange account by going to the Baseconfig of your simulator.

You can buy extra paper trading accounts via “manage accounts” in the base config.

Erasing Paper Trading Balance

If you want to get rid of the current balance so you can start afresh, go to your deposit and withdrawal area on your dashboard and click the reset button.

Maybe you just want to erase one kind of currency. If this is the case, use the withdraw button and click on the currency you wish to eliminate and specify how much to withdraw.

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Backtesting | Cryptohopper Best Strategies

What we love most about working with trading bots is the ability to backtest your strategies and configurations. This removes the need of simulating your trading to check whether or not it’s going to work out.

Professional algorithmic traders are always backtesting their strategies. They have with them a strategy running live on their investments that they have tested on the current market, and they continue creating and testing new strategies. The markets do change, and so do their strategies, which means the backtester is critical.

The backtesting tool assesses your strategy in tandem with your configuration. It notes when your Hopper would’ve purchased an asset and what the probable result is with your current setup. It’s a great way to determine if your Stop-Loss, Trailing Stop-Loss, and other settings are correct.

It’s advisable that you first test your Strategy Builder strategies to develop a solid strategy to work with. Afterwards, you’ll be free to play around with different configurations.

Your First Backtest

Because this is your first time ever using the Backtesting tool, we’ll test the template that you installed on signing up with Cryptohopper.

• Choose the currency you want to backtest and click “Load Existing Config”. As you can see, all settings are automatically adjusted!
• Pick the amount of time you want to backtest the Config on. It’s recommended you don’t set the period too long because doing this means it will take forever to analyse it. Also, it’s good to remember that professionals use smaller time frames to make their strategies more effective.

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• Next, you need to perform some adjustments. Modify your configuration till your maximum profit is acceptable and your sells with a loss are not more frequent than your successful sells.
• When satisfied with the test results, click “Deploy this Configuration”. Doing this will alter your Config to the settings you have set in the backtesting tool.
• Your Backtest history displays the backtests you have performed, so you can quickly select and deploy the most successful test.

The “Config Finder” makes it easy for you to automate this part. The only downside is that it only works with the “Multiple TA Factors” strategy as opposed to the strategies downloaded from the marketplace or the strategy builder. You can edit the Multiple TA Factors strategy first in your Config> Strategy > Select Multiple TA Factors. Remember to do this before you start using the “Config Finder” Ignoring this will result in constant error reports that your Hopper couldn’t find a target.

It’s a good idea to keep testing your configurations and your results with paper trading first. This is the safest way of beginning your adventure in the world of automated trading.

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Strategy Designer | Cryptohopper Best Strategies

Cryptohopper’s Strategy Designer feature is essential for algorithmic traders. The program is the heart of what algo-traders need to automate: technical analysis.

Traders examine the markets with indicators that look at volume, volatility, trends, and momentum. When analysed together, these indicators can show how the markets will move.

Traders typically use tools like TradingView to analyse the markets. They pick their favourite indicators to see what they predict. This type of analysis can be very time-consuming and something that should be automated!

To access the Strategy Designer, head to “Strategies” in your dashboard. Here, you’ll find the strategies you have made and the strategies you have downloaded from the marketplace.

You can even edit some strategies available for download. This lets you test and tweak them.

Assessing Strategy Designer

The idea behind Strategy Designer is to allow you to select indicators and candlestick patterns. Your Hopper will then use these patterns to scan the markets to decide if it’s time to buy or sell. After creating a strategy, you can test it to see if it requires any tweaks.

The success of your strategy will depend on the blend of indicators and candlestick patterns, the chart period (candle size) you are analysing, and how “tight” you set it.

Your choice of indicator values determines how fast the indicator will signal a buy, and these settings are different for each indicator.

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The more indicators that should be met simultaneously, the fewer signals your strategy will provide. Feel free to play around with the tightness by configuring a “keep signal for” when organising your indicator or with the minimum buy/sell signals. This way, it will have more time to overlap with other indicators.

After selecting your first combination of indicators and candlestick patterns, it’s now time to put it to the test! You will need to test and repeatedly tweak to find a good strategy.

If your strategy signals a lot, maybe it’s time to make it tighter. You can do that by picking more indicators, setting a lower “Keep signal”, or raising the minimum buy/sell. If you lack enough buy signals, then do the opposite.

If your signals are in odd places, for instance, right on the top of a price instead of the bottom, consider picking different indicators/patterns. Changing the settings of your indicators could help as well.

If you’re using TradingView, avoid blindly following copying indicator settings from the platform. To determine an appropriate oversold threshold for your RSI, ensure that TradingView uses similar settings as your Strategy Designer. Otherwise, the results will not match.

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Algorithm Intelligence (A.I.) | Cryptohopper Best Strategies

Not to be confused with Artificial Intelligence, Cryptohopper’s unique A.I. is an exciting development in automated trading.

An easier way to understand how it works is by comparing it to an automatic backtester. After “feeding” your Algorithm Intelligence with all the possible strategies, it will analyse them all for you and pick the one that’s most successful in the current market.

To create a great A.I, you need to:

1. Possess many accurate market trend analysis strategies that help it analyse the trends of a market. You can either build them yourself or download them from the marketplace.

2. Feed it with several strategies for buy/sell signals. These can be signals from signallers or TradingView alerts.

Your A.I. will rate both signal strategies and the market trend with an accuracy score. In your Config, you can limit how high the score must be on a signal before your Hopper may trail it. Your Hopper will follow signals that come from the strategy with the highest accuracy automatically!

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How to Set Up Your First A.I.

• Name your A.I. and save it. Make it a habit to save every time to update the checklist and make sure that you don’t lose your progress.
• Add trend strategies that help your A.I. study the market trend. It’s vital for your A.I. to know if there’s a downtrend, uptrend, downtrend, or if the market is moving sideways. If you do not have any strategies, download them from the marketplace or build them in the Strategy Designer. Click save once done.
• Add signals strategies that hunt for buying and selling opportunities, then click save.
• Configure the A.I. as a strategy in one or more hoppers. Doing this enables your Hopper to search for buying/selling opportunities. You can do this in your Baseconfig > Strategy > Select your A.I. strategy.
• Configure your AI by clicking “Config” and altering the settings. Your Bot will provide a score between -1 and 1 to every buy or sell signal, and the lower or higher this score, the stronger the buy/sell signal is.
• Confirm that the A.I. is scanning the market by going to “Training”, picking the right exchange, pairing what you want to analyse, and clicking “learn”. Your A.I. will start learning!
• Repeat the whole process and train your A.I. for all markets you have carefully chosen in your Config at “Coins & Amounts”.
• Congratulations, you have created your first A.I. The more tactics you will feed to your A.I., the more it will learn!

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Arbitrage | Cryptohopper Best Strategies

Arbitrage exists because of market inefficiencies.

It’s defined as the simultaneous buying and sale of an asset to gain a profit from a price difference.

The two main types of arbitrage are:

Exchange Arbitrage

The natural forces of supply and demand can cause the prices between exchanges and pairs to be different. As a trader, you need to take full advantage of these price differences without withdrawing your funds from your exchange!

The Cryptohopper arbitrage bot doesn’t send funds among different exchanges, and the platform, therefore, doesn’t need permission for “withdrawal rights” via the API.

How it works is to perform exchange arbitrage and take advantage of price inefficiencies, you need to own the coins for which you’d like to Arbitrage.

Market Arbitrage (Triangular Arbitrage)

The Market Arbitrage bot will search for market inefficiencies within one exchange.

Your Hopper will try to increase the amount of the coin(s) you’ve chosen as the quote coin. To do this, the Hopper will take advantage of price differences between the available currencies on your exchange. More precisely, it will make 2 different trades to increase the quantity of the chosen quote coin.

Market Arbitrage works best on exchanges that have lower trading volumes.

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Market-Making | Cryptohopper Best Strategies

You will benefit from a market make if:

1. You’re a trader and would like to profit from a big spread
2. Your project/coin lacks enough liquidity and your spread is too big
3. You’re a starting exchange in need of liquidity

The Market Maker bot offers liquidity to your preferred market and can alternatively act as a method to profit from a big spread. The spread = highest bid minus the lowest ask.

Illiquid markets are characterised by big spreads, and market makers are responsible for placing orders around to spread profit from it, cut the spread, and therefore create liquidity.

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Illiquid assets may be difficult to sell quickly since there’s low interest in the issue or trading activity, shown by a lack of ready and willing speculators or investors to buy or sell the asset. Because of this, illiquid assets tend to have lower trading volume.

How the Cryptohopper Market Maker Bot Works

Cryptohopper’s Market Maker bot lets you place layered limit buy and sell orders, thereby keeping the market liquid. Placing these orders changes the order book of the exchange, makes the spread smaller, reduces the spread, and makes the market more liquid.

On setting up a Market-Maker, you need funds in 1.) Your quote currency 2.) The currency for which you want to make the market. Depending on your configuration, Cryptohopper’s Market-Maker will place orders “around” the spread.

Markets are very dynamic, so you need to be proactive to change your order price quickly. Simply click on the buy/sell signs to create an order, then drag and drop it to where you want in the order book when things change.

Market trends are always changing, and so should your trading strategy. Utilise indicators to identify market trends and configure various trading strategies according to market trends so you can switch between strategies when necessary.

You can even configure how the market-maker should sell its orders. When the markets surge, you first want to place buy orders and sell later. You do the opposite with a down-trending market. In a sideways market, you’ll want to execute your buy and sell orders simultaneously.

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