The research will include five online crypto trading bot platforms, each utilizing different strategies and automation. The goal is to identify the most profitable ones and determine whether or not there is a winning pattern.
Last month we reviewed the state of crypto wealth management by analyzing 15 crypto funds. We focused on institutional investing as it is one of the fastest-growing asset managers in DeFi, with over $60Bn in AUM.
The emphasis this time will be on retail trading apps. The research will include five online crypto trading bot platforms, each utilizing different strategies and automation. The goal is to identify the most profitable ones and determine whether or not there is a winning pattern.
Below are the five crypto trading platforms we chose for our analysis.
1. One Click Crypto
One Click Crypto is a global investment management firm specializing in data-driven cryptocurrency portfolio optimization using AI technology. The company provides a trading app for retail investors. Inside, users can access over eight unique machine-learning trading bots that can trade on over 50 cryptocurrency markets. All bots are created by the OBC team.
Zignaly is a crypto copy trading software with profit sharing. Over 430k investors use the platform, and it has a rich assortment of trading strategies provided by expert traders or teams that design automation tools (trading bots that users can copy).
Bots.io offers a selection of automated trading robots for cryptocurrency markets that are accessible directly in their app. These bots are developed by independent developer teams and are unique in technology and investment strategy.
4. Stoic.AI (Long Only Strategy)
Stoic.AI is a crypto trading app that rebalances an investor’s portfolio once a day. It diversifies the funds across several chosen crypto coins. Stoic’s algorithm combines capital-weighted and momentum approaches and is supported by machine learning models.
5. Osom.Finance (Crypto Autopilot)
Osom is a crypto trading app provider that aims to diversify its investors’ portfolios using artificial intelligence smartly. Their trading tool is “Crypto Autopilot.” It acts as a trading bot that automates all trades.
To fully measure the trading performance, we would need to introduce concepts like benchmark strategies, risk factors, series regressions, risk-adjusted performance, and much more. There is a time and place for that, but for simplicity purposes, we will look at just the most important things:
For consistency, we will take each platform’s top 3 trading bots and average their performance for the last four quarters. We will analyze the timeframe from Oct 1, 2021, until Sep 30, 2022, as this is exactly 12 months, and it is the most reliable period for the current market.
Below is a comparison chart of the 12-month cumulative performance of each trading bots provider.
The benchmark cryptocurrency ‘Bitcoin’ went down by -55.66% in the last 12 months, with Q2 of 2022 being one of the most devastating in its history. Overall, 11 of the 14 trading bots providers outperformed BTC, with 8 returning an average positive net gain on their chosen top 3 bots.
The most profitable services on the list are One Click Crypto at a +39.69% gain on the top 3 trading bots (on average), Skyital with +26.92%, and ‘C R Y P T O P U N K’ (bots provider) with +24.37% net profit.
If we group each trading strategy mix to its respective provider, we can see that Bots.io overtakes Zignaly for the second place, while OB Capital stays on top. This comparison is not as reliable as the previous breakdown, as it does not take an equal amount of trading bots from each provider, but it still gives an overall idea.
Finally, we will provide a detailed breakdown of the chosen strategies and analyze how they differ and if there is a pattern that shows more profitability.
The biggest winners from the list are two Ethereum Classic (ETC) bots. Skyital’s (ETC) bot and OB Capital’s Performer v2 (ETC) have been phenomenal over the last twelve months.
The former had a net profit gain at +135.84%, while P2 returned +72.84%. Skyital uses futures trading, while OBC’s Performer v2 can only spot trade with long positions. Thanks to its AI-powered mechanism, P2 benefited to the fullest from the uptrend periods alone.
C R Y P T O P U N K’s Futures (BTC) bot and Fluctus Technologies’ Fluctus were quite close for the joined third place with +47.83% and +42.10% ROI, respectively. CP uses futures trading for its automation, while Fluctus is a “trend trading” crypto bot. At one point, Fluctus was even up to +69.87% in Q2, 2022.
Given that OB is looking into futures strategies, we spent time on Zignaly reviewing all of their strategies’ performance over two separate periods. We saw how volatile it is and how quickly well-performing trading strategies can have negative returns several price cycles later.
However, there may be value if futures strategies act as a hedge to spot trading positions. For example, if the majority of the users’ bots buy, the futures bot may be able to hedge that position with a small short position. That would be revolutionary, as we have not seen any competitors in the space use dynamic hedging.
The data below takes into account 136 individual trading strategies on Zignaly. The average quarterly performance of futures strategies (both mean and median) has been negative for a whole year.
Cryptocurrencies remain one of the riskiest investments but also the one with the highest profitability potential. In this research paper, we took five of the best trading automation software providers and compared their trading bots over the last four quarters using statistical analysis.
The results show that, on average, the best-performing strategies of each company are capable of beating the benchmark asset — Bitcoin. Overall, 8 out of 14 bots returned a positive net gain in the last 12 months, with One Click Crypto’s top 3 strategies being first in the list with +39.69% ROI.
Futures trading bots have the potential to be a hedge against long-only trading strategies. That will combine the benefits of shorting during a downtrend with the more concrete long-only strategies that work during uptrends but fail during bear markets.
👉🏻 Share your experience with trading bot platforms on One Click Crypto.
Disclaimer: This is not financial advice. This report is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research before making any kind of investment in the cryptocurrency market.
We regularly prepare insightful reports and case studies about crypto trading and the blockchain industry.
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