9 AI Crypto Trading Bots for Robinhood Compared

1 month ago 10

Cryptocurrency trading is similar to a bazaar, people are yelling out prices and no one knows what will happen next. The moment you close your eyes, you’ll find the market having a fluctuation. This situation has driven some traders to seek a trading mechanism that is more intelligent, efficient and less emotional than the human brain at 2 am when you have been staring at a computer screen for a whole day.

Unlike Humans, Machines Do Not Feel Fatigue

Humans are emotional animals, prone to fatigue, impatience, and greed. Have you ever sold a coin out of panic only to see the price surge after 10 minutes? We all have, and it is excruciatingly painful. This is one of the reasons why AI is increasingly being applied to trading. AI can process a huge amount of information, identify trends and execute trades in a fraction of a second. And, it never needs to drink coffee.

The Transition to AI-based Trading

At first, nobody noticed the change in the paradigm of trading. One day traders were obsessively looking at candlestick charts, the next day algorithms began to make all the decisions. Some people are welcoming the change, others still do not trust AI for trading. Me? I think AI does not replace human traders, it only makes them more competitive in this largely unpredictable marketplace.

What Is an AI Crypto Trading Bot?

Markets are fast. Sometimes too fast. You blink once and all is quiet. You blink again and the price is as skittish as a triple shot of espresso. That’s when you might want to consider getting an AI crypto trading bot. Think of it less as a get rich quick scheme and more as a personal trading valet that never needs a cup of coffee.

Your Personal Trading Butler

An AI trading bot is simply a program that analyses market data and responds to it. Prices. Indicators. Trends. It digests them all at a rate far faster than most humans. You are worrying about the kitchen. The bot is reading charts. You are wrestling with your router. The bot is placing orders.

Not Foolproof, Just… Fool-less

Some people expect bots to be infallible. They’re not. Markets can be irrational. Emotional. Unpredictable. But they do help eliminate one of the most common of all human errors. Acting out of fear. Personally, I think they are nothing more than a crutch for traders that would rather trade by numbers than by instinct.

1. CryptoHero

CryptoHero is a crypto trading bot that executes trades automatically so you don’t have to spend hours looking at the screen. It uses signals and technical indicators to place trades based on rules programmed into the bot. In essence, it’s a bot that does all of the work for you while you sleep. Here are some of its key features:

Automated 24/7 Trading This means that the bot will continue trading while you sleep. It will place trades automatically when the bot identifies certain market conditions.
No Programming Knowledge Needed With CryptoHero, you do not need to have any programming knowledge to set up a bot. You can easily configure a bot strategy through the provided interface.
Strategies From Other Users Other experienced users have already created strategies that you can easily copy and use. You do not need to create your own strategy, unless you want to.
Backtest Strategies You can use historical data to backtest your strategy and see how it would have performed.
Paper Trade Before Going Live You can also use the paper trade option to try out your strategy before going live.
Other Supported Strategies This bot also supports other popular strategies such as grid trading, DCA, and long/short.

Final Thoughts

If you are new to trading bots, then CryptoHero is a great place to start. While some trading bots can be confusing, this one is relatively easy to use and understand. You also have the option to test your strategy before risking any real capital. As with any trading strategy, there are no guarantees, but this is a good option for anyone looking to get started with automated trading.

2. TradeSanta

TradeSanta is a cloud-based automated trading bot that’s designed to automate popular strategies that you would use as a trader without wanting to be in front of your computer 24/7. Essentially, once you set up a bot, it can automatically trade for you based on the parameters and indicators you set for it. So essentially, you focus on the trading, and it takes care of the legwork.

Overview of TradeSanta’s Features

24/7 Trading: The bot will run 24/7 and execute trades according to the strategy parameters you set.
Grid and DCA Strategies: You can create bots that use Grid or Dollar-Cost Averaging strategies.
Indicator signals: You can use signal indicators such as RSI, MACD, and Bollinger Bands to automatically trigger trades.
Additional orders: In the event of a wrong trade, TradeSanta can place additional orders to mitigate the loss and eventually reach the profit target.
Long/Short strategies: You can run long and short trading bots.
Template strategies: TradeSanta has a simple interface with ready-made templates to help you create your first bot.

Now you know what TradeSanta can do. Let’s take a look at how you can get started. TradeSanta is a pretty useful tool for automating trades. It’s simple to use, and it has all the popular strategies that most traders use. But just like any other trading bot, it’s not foolproof, and you still need to monitor it to ensure your trades aren’t going haywire. For me, I think it’s a great tool to have, but I wouldn’t rely on it to make all my trades.

3. OctoBot Cloud

OctoBot Cloud is an automated trading bot that can trade for you. The bot utilizes technical indicators and AI signals to automate your trading decisions. It also supports user-made strategies. You can think of it as an auto-pilot that trades for you while you sleep. Let’s take a closer look at some of the key features.

AI Trading Strategies OctoBot Cloud supports AI trading strategies. The AI strategies are able to recognize signal patterns and make decisions based on them.
DCA and Grid Strategies The platform has two trading strategies of its own: DCA and Grid. DCA and Grid both allow automated entries and exits based on price action.
Strategy Editor and Custom Strategies If you want to use a custom strategy, the platform has its own strategy editor. With the strategy editor, you can edit existing strategies or create your own.
Backtest and Paper Trade Strategies Strategies can be backtested and paper traded to refine them before use.
Strategy Sharing and Crypto Basket The platform allows the sharing of strategies and also supports crypto baskets. For example, you can follow a strategy that invests in a basket of DeFi tokens.
Open Source The bot itself is open source, and you can view its source code here.

Summary

OctoBot Cloud seems to me like a platform designed for traders who want to tinker and experiment with their strategies. While it does support easy 1-click trading, the best thing about the platform is the flexibility that it offers. Unless you have a strategy in mind, it does take some time to learn how to use the platform. On the other hand, I do like the backtesting and paper-trading features. They make automated trading much less of a crapshoot.

4. Bitsgap

Bitsgap is a cryptocurrency trading platform that aims to help traders execute algorithmic trading strategies without constantly looking at screens. Its automated trading tools automatically generate trading signals and execute trades based on a set of predefined rules and indicators. In essence, it offers a disciplined trading companion that won’t hesitate to pull the trigger when a human trader is hesitant.

Key Features

AI-Powered Trading Strategy Advisor Bitsgap’s AI advisor studies market conditions and advises a trader on which strategy to use based on their portfolio and risk tolerance.
GRID Trading Bot The GRID bot is best suited for sideways markets. It automatically creates a grid of orders at which to buy and sell an asset, depending on price movements.
DCA Trading Bot Dollar-Cost Averaging (DCA) bot automatically distributes buying orders at different price levels to lower the average entry price of an asset.
Several Bots Supported The platform supports several trading bots, including GRID, DCA, and Buy-the-Dip. Users can switch between them depending on the prevailing market conditions.
Backtesting Before investing their money in a strategy, traders can test its efficiency using the historical price data.
Portfolio and Risk Management Bitsgap has built-in tools to monitor your portfolio, manage positions, and attach features like take-profit and stop-loss orders.

Bottom Line

From the feel of it, Bitsgap was designed with a structured trader in mind. The interface is easy to use despite its powerful trading automation capabilities. As expected, trading with bots is not foolproof, and no bot wins every day. However, if you are looking for a great platform to automate your trading strategies and minimize emotional trading errors, you should consider giving Bitsgap a try.

5. Cryptohopper

Cryptohopper is a crypto trading bot that enables traders to automate their strategies and not spend hours in front of their screens. It offers a variety of technical indicators, algorithmic rules, and AI-driven functionalities to analyze the markets and trade accordingly. In other words, this is a go-to solution for those who want to trade without spending their whole night looking at the candles, hoping they’re right. What are some of its main features? Let’s have a look.

Strategy Designer: With this feature, users can create automated strategies based on indicators and rules. There’s a lot of customization available here, so users can really personalize their automated trading experience.
Strategy and Signal Marketplace: Cryptohopper offers a marketplace where users can purchase strategies, templates, and signals from advanced users. This is particularly useful for new traders who don’t have the time or knowledge to create their own strategies.
Backtesting: Users can backtest their strategies with historical data, which is one of the most important aspects of any automated trading tool.
Dollar-Cost Averaging (DCA): The automated trading bot can place buy orders at a lower price if the market goes against your trade.
Paper Trading: Users can test their strategies with fake money before risking their own capital.
Performance and Risk Management: The platform offers features to track the performance of the strategies and adjust risk management settings, such as stop-loss.

In Conclusion

Cryptohopper is a trading bot suitable for traders who like to automate their strategies. While there are a lot of customization options available, the platform also offers templates and strategies for beginners. Keep in mind that trading with automated bots still carries risks, so make sure you know what you’re doing. I personally believe that this bot offers a good mix of powerful features and flexibility.

6. Coinrule

Coinrule is an automated trading bot which is based on a simple premise. It allows users to define rules, and these rules will trigger trades. Rather than writing a fully-fledged automated trading algorithm, users can define simple “if this then that” rules which will be executed if certain market conditions are met. In a way, you can think of it as scripting a virtual trading assistant which mirrors the way you would trade, and have it perform the execution for you.

Features

Strategy Builder The ability to create automated trading rules with a graphical interface. There is no need to write any code. You simply specify the conditions, and the actions which you want to happen, and the trading bot will take care of it.
Strategy Templates A number of predefined rules which are based on popular trading strategies. Users who are new to automated trading can use these predefined templates, or customise them and have the bot execute them.
Conditional triggers Strategies can be triggered based on technical conditions such as price, volume, trend, etc. Essentially, users can automate their trading ideas.
Paper Trading Users can test strategies using virtual money before allocating real funds. Users can therefore experiment, and refine their strategies without risking any capital.
Automated Risk Management The trading platform allows users to define stop losses, and profit targets, so that the bot can manage their risk for them.
24/7 Trading Once a rule is defined, the trading platform will execute it in the cloud. This means that once a strategy is live, it will run 24/7, and execute trades even if the user is not logged in.

My Conclusion

Overall, I am quite surprised at how simple Coinrule seems compared to other trading platforms which I have tested in the past. The rules-based platform makes automated trading simple, and intuitive. It is especially useful for users who want to have full control of their automated strategies, but do not necessarily possess the programming skills to do so. As with anything in trading, it is worth noting that the strategy matters. Writing a poor rule will mean that the automated trading platform will place poor trades. I personally quite like the direction which Coinrule are taking, in that they are making automated trading platforms as simple as possible. Many of the platforms which I have tested in the past have been over-engineered, and complicated. I therefore like that this one does not overcomplicate automated trading.

7. ArbitrageScanner

ArbitrageScanner is a bit of a unique crypto trading platform in that its main goal is to find price discrepancies between markets and capitalize on them. It doesn’t try to guess what’s going to happen tomorrow or next week, it just looks for instances where the same coin is trading for different prices at different exchanges. Buy at the low price, sell at the high one. That’s it. It uses algorithms and real-time data to do it, but the principle is straightforward arbitrage.

Key Components

Real Time Arbitrage Signals: It scans various exchanges for price discrepancies and alerts you when it finds one.
Cross-Exchange Signals: Identifies price differences between exchanges that might offer profitable trades.
Blockchain and On-Chain Data: Analyzes on-chain data for insights into trading opportunities or unusual activity.
NFT Signals: It looks for price discrepancies among NFT listings on various platforms. Not everyone is into NFTs, but if you are, this could be useful.
Arbitrage Dashboard: The platform offers a dashboard to track arbitrage opportunities, price action, and profit margins.

The Verdict

I kind of like ArbitrageScanner. It’s not your typical automated trading bot. It’s not trying to predict what the future holds, just looking for arbitrage opportunities in real-time. I kind of like that idea. Sometimes the best trades are the simple ones, based on price differences rather than predictive algorithms. Of course, timing still matters. This isn’t a “set it and forget it” type of tool by any means, but if you’re into arbitrage, it might be worth a closer look.

8. Pionex

A brief overview of Pionex: Pionex is an automated cryptocurrency trading platform that offers built-in trading bots. While there are various cryptocurrency exchanges, many platforms allow you to trade with bots. Trading with bots is becoming more popular. Because, trading with bots can save time and you can earn money even when you are sleeping. Is Pionex legit? Is Pionex safe? We will discuss everything about Pionex in this article.

Here are the key features of the Pionex trading platform

Automated Bots: Trading bots are the biggest selling point of the Pionex exchange. Pionex provides you a range of trading bots which you can use to automate your trades. You do not need to download any application or third-party software to run trading bots. You can easily run trading bots directly from the exchange.
Grid Trading Bot: The bot places buy and sell orders within a price range to capture small market fluctuations.
Dollar-Cost Averaging (DCA) Bot: This bot spreads buy orders across different price levels.
Price Difference: Price difference bots are the most popular bots provided by the Pionex exchange. This trading bot helps you to make money from price differences. The price of cryptocurrencies may be different on different exchanges. These bots help you to make money from the price difference between different exchanges.
24/7 Trading Bots: You can automate your trades 24/7 with the help of trading bots. These trading bots keep running 24/7. The best thing about these trading bots is that they do not need any break. They can run 24/7 without any break.
Customizable: Trading bots are customizable. You can set a limit, target, and customize the bots according to your needs.

9. 3Commas

3Commas is an automated trading platform for cryptocurrency that allows you to execute algorithmic trading strategies without needing to monitor the markets 24/7. The platform offers smart trading, automation bots, and portfolio management rolled into a single interface. If you will, it’s like offloading the day-to-day grunt work to a rules-based bot while you step up to a higher level.

Key Features

DCA Trading Bots This includes the standard Dollar-Cost Averaging bots which automatically place additional buy or sell orders if the price goes against you. This is supposed to bring down your average entry price.
Grid Trading Bot This bot is ideal for sideways markets. It places buy and sell orders at a specified price range. This allows you to take advantage of small price movements multiple times.
Smart Trading Terminal You can control your positions, complete with stop-loss, take-profit, and trailing orders all from a single terminal.
Strategy Presets and Templates If you are a complete beginner, then you can simply start off with a set template and tweak and customize as you go along. This makes the onboarding process slightly easier.
Backtesting Before you run any strategy live, you can backtest it against historical data.
Portfolio Tracker You get insightful analytics to keep track of your balances, profitability, and basically how your strategies are performing.

Conclusion

At the end of the day, 3Commas seems like a platform that’s geared towards strategy-loving traders who want to automate some of the day-to-day activities but still want to maintain a level of control. The bots are certainly powerful but if you take the time to set them up and learn the ropes, it shouldn’t be that difficult. Remember, the bot can only do what you tell it to do. Strategy always counts for a lot. For me, I think it’s a great halfway house between manual trading and pure automation.

Can You Use AI Trading Bots with Robinhood?

You may be thinking, “Wait, can’t I just hook up a bot to my existing brokerage account?” Well, not exactly. To connect to a brokerage account, the trading bot needs the trading platform to allow it to interface. Some platforms offer this and others do not.

The Practical Hurdle

Most AI trading bots need to use a platform’s API to execute trades. This is typically done via an API key, but if a platform doesn’t support a trading bot’s API key, the bot can’t actually perform trades. It’s like giving someone directions to your car but then not giving them the keys.

Unofficial Hacks

While some have found ways around this limitation, I’d exercise caution against such tactics. This could involve potential security risks, having your account locked, or having the bot fail to perform. If you’re going to automate, do it within the spirit of the platform and the bot. Otherwise, it’s like trying to force a square peg into a round hole.

Benefits of Using an AI Crypto Trading Bot

Markets fluctuate, news breaks, and fear sets in. If you try to keep up with everything, it can be tiring. For this reason, crypto trading bots have gained popularity as they allow traders to live their lives. Here are some reasons why.

Emotionless Trading Humans have feelings and doubts. They tend to question their own judgment. They get emotional when they see red candles. A bot does not experience fear or euphoria. It will act according to its programming. And that’s one of its strongest points.
Fast and Consistent Perhaps the most important advantage is that bots are fast and consistent. A bot can analyze huge chunks of data in a millisecond and respond to them. It won’t delay or overthink. It just acts according to its principles.
It’s the Freedom While this may not sound that important, I assure you that it is. For automated trading, you don’t need to sit in front of the computer screen all day. That’s a big plus, in my opinion. While it’s far from ideal, it makes trading in the crypto market a lot easier.

Risks and Things to Consider Before Using a Bot

Set your rules, click the start button, and let the bot do the dirty work. However, the cryptocurrency market is not so friendly, so it is likely that even the best bot will fail to make a profit if the market goes against it.

Markets Don’t Always Follow the Script

Bots follow the rules. That’s what they were made to do. The market, however, doesn’t play by the rules. A strategy that worked last week, might not work this week. I’ve seen traders that blindly trust their bots, only to freak out when the bot doesn’t do what they expected.

Tech Isn’t Perfect Either

Sometimes the internet connection breaks, sometimes the software has a bug, sometimes the data feed sends a false signal. Those things almost never happen, but they can happen. When you’re trading, even the slightest mistake can be costly.

Don’t Switch Off Your Brain

Personally, I always say that you should use a bot like a slave, not a master. You should keep a close eye on it, only test a strategy for a short time before going full scale, and you shouldn’t be overconfident. A bot can help you, but it can’t think for you.

Conclusion: Is an AI Trading Bot Worth It for Robinhood Users?

So after all of that, the question isn’t really, “Are AI trading bots cool?” They are. The real question is, “Do AI trading bots work for the way that you want to trade?” It’s a godsend to some, but for others it’s like strapping a robot into the driver’s seat and praying.

It Depends on the Trader

There are some people out there who love the idea of removing emotions from the process. That’s okay. Then there are those who don’t want to engage in panic selling or late-night chart staring. If you’re one of those, then, yes, a bot is an excellent next step.

But It’s Not a Magic Button

None of this means that bots can assure you’re going to make money. The market is wild, unpredictable, and sometimes just plain stupid. For myself, I like to use bots as a tool. I believe they can refine and improve a strategy, but, at the end of the day, a bot is only as good as the person in front of the screen.