CRYPTO TRADING BOT SOFTWARE
All-in-one IT solution for professional investors
Looking to make passive income in crypto and stay in control? Oxido Solution’s user-friendly crypto software lets you adjust proven trading indicators to fit your risk level and set your own targets. You run the strategy; we provide the tech.
Trading indicators
We offer technical indicators on TradingView and any other trading platform you need.
Alpha shifter
Our self-hosted middleware software is the best way to automate your trading strategy.
Technical support
We provide regular software updates and other IT support, but no financial advice.
MEET & GREET
READY TO BECOME A CRYPTO SOFTWARE EXPERT?
Since 2017, we’ve been on a mission to learn and perfect our trading bot strategies, leading to the development of top-notch crypto trading bot software. To help you get familiar with our system, we’ve put together a content program that covers 10 essential aspects you need to know about this exciting area. All content is meant for educational purposes and should not be taken as financial advice.
BLOG
Active to passive Trading Systems
Selecting the right crypto bot system depends on both the strategy’s fit and how involved you want to be. Think about the best way to carry out your crypto trading strategy. Do you want an active role, a passive one, or something in between? Make sure your chosen cryptocurrency trading platform can meet these requirements. You have options from fully automated systems to manual setups and hybrid models that mix both. Consider these choices carefully to match your trading approach with what you’re comfortable with and your overall objectives.
Manual trading system
In manual trading bot systems, traders are at the heart of decision-making. They personally analyze market data, interpret signals, and determine when to enter or exit trades based on a set of rules. This hands-on approach allows for nuanced judgments and the flexibility to adapt to new information. However, it demands significant time, focus, and a disciplined adherence to the pre-defined rules to avoid emotional trading decisions.
Automated trading system
Automated trend-following systems are entirely operated by computer algorithms. These systems handle everything from data analysis and rule application to generating alerts and executing trades via middleware. They operate based on set rules and can quickly respond to market changes. Automated systems are capable of running 24/7, eliminating emotional biases from trading decisions. However, they also necessitate careful monitoring to ensure the algorithms perform correctly and adapt to changing market conditions.
Hybrid trading system
Hybrid trend-following systems blend both manual and automated elements. They might automate certain functions like data analysis and applying trading rules, yet leave the final trade execution decision to the crypto trader. Conversely, they may execute trades automatically but allow traders to intervene manually when deemed necessary. This mixed approach provides a balance, leveraging the efficiency of automation while retaining the critical insight and control of manual cryptocurrency trading.
SUPPORT TRADING BOT STRATEGY DESIGN
In addition to understanding the type of strategy and your personal level of involvement, you’ll need to determine if the crypto trading bot software supports the way you want to develop your trading strategy. Essentially, you have three main approaches to consider: technical analysis, fundamental analysis, or a combination of both. To help you make an informed decision, let’s delve into the primary differences between technical and fundamental analysis methods.
TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS
FOCUS
Analysis of quantitative data based on technical indicators.
Investment type
Frequent changes: suited for short and long term investing.
Focus
Analysis of qualitative data with fundamental indicators.
Investment type
Less frequent changes: more suited for long-term investing.
EXAMPLE TA
A gold CFD trading bot uses technical indicators like RSI, MACD, and Bollinger bands. It analyzes the chart, market data, and other quantitative information to spot trends and patterns based on preset parameters. It then generates a trading opportunity.
EXAMPLE FA
A trading bot analyzes fundamental data related to Amazon stock, like product news, industry trends, and management data based on predefined parameters. It then generates a buy or sell opportunity based on this analysis.
EXAMPLE TA & FA
With a cryptocurrency trading strategy for Ethereum, the bot could be set up to spot buy opportunities based on technical indicators like a breakout of the top range of the Bollinger Band. It could also consider fundamental factors, like monitoring social media and other indicators for any negative news or sentiment about Ethereum on a given day.
ETHEREUM
SPOT VS DERIVATIVES TRADING PAIRS
When choosing software for crypto trading, it’s essential for traders to confirm that it supports the specific trading pairs they plan to use. This compatibility is crucial for the seamless execution of your trading strategy and largely depends on the exchanges or broker platforms utilized. Trading pairs typically fall into two categories: Spot and Derivatives. Understanding the differences between Spot and Derivatives trading is critical when selecting the appropriate software and exchanges for your trading bot strategy. Here’s a brief overview of the key distinctions between spot and derivatives trading pairs.
Keep in mind, as an IT company, we don’t provide specific advice or assess your qualifications to trade on these types of trading pairs. We strongly recommend doing your own research and seeking advice from a financial expert.
SPOT | DERIVATIVES | |
Definition | Buying and selling of digitals assets | Buying and selling of financial contracts |
Contract types | Spot | CFD's, perpetual futures, options |
Collateral | Digital asset | Different types of digitals assets |
Leverage | NA | Amplify profit or loss with leverage |
Trading fees | Higher | Lower |
Risk management features | Less | More |
Trading fees | transaction fee | transaction fee, liquidation fee, funding fee |
Hedging | Not supported | Supported |
Rules
Each crypto trading system operates on a foundation of rules. These guidelines may be static or evolve over time, particularly in systems that incorporate artificial intelligence. Establishing rules is fundamental for several reasons.
DICIPLINE
Emotions, such as such as fear or greed, can heavily influence trading, leading to hasty decisions driven by fear or greed. Rules help traders maintain discipline by adhering to a predefined strategy, regardless of short-term market changes.
Consistency
Rules bring consistency to trading, ensuring each trade is evaluated and executed under the same criteria. This consistency aids in more predictable outcomes and streamlines the process of assessing and tweaking the trading strategy.
Objectivity
Established rules make trading decisions significantly more objective and reliable. By effectively removing personal bias, traders can consistently rely on a systematic approach to confidently navigate through complex market uncertainties.
Automation
Clear and precise objective rules allow for the comprehensive automation of trading actions. Automated trading systems can efficiently and reliably execute trades faster than manual operations and are capable of running continuously without interruption.
Performance
Precisely defined rules facilitate the thorough evaluation of a strategy’s effectiveness. By accurately identifying what works and what doesn’t, traders can continuously refine and further enhance their approach, ultimately leading to significantly improved performance.
TRADING DATA
Comprehensive and reliable data is at the heart of a successful trading bot software suite. It’s vital to have access to thorough and trustworthy data for a winning strategy.
Trading data comes in two forms: historical and real-time. Historical data lets you look back and see how your strategy would have played out in the past, offering precious insights. Real-time data, on the other hand, is essential for successful live trading. Up-to-date information is key to making well-informed decisions and adjusting to the present market conditions.
✓ Price
✓ VOLUME
✓ ORDER BOOK
BECOME A DATA PRO
CRYPTO BOT Testing Suite
A robust testing suite is crucial for any trading system, providing traders with the tools to validate their strategies before going live. Typically, a testing suite includes three main components: backtesting, forward testing, and stress testing.
Backtesting
Backtesting involves testing a trading strategy against historical data to assess how it might have performed. It’s a crucial step in developing and fine-tuning any trading system. The goal is to gauge the strategy’s performance and risk profile under different market conditions and to identify and fix any flaws. By applying the system’s rules and risk management parameters to historical data, the crypto strategy tester simulates trades as if they were executed in real-time. This hypothetical performance history is then analyzed in detail.
Forward testing
Also known as paper trading, forward testing involves testing a strategy in a simulated, live market environment with real-time data but without risking actual capital. This step is key for confirming the strategy’s effectiveness under current market conditions and making any necessary tweaks before using real money. Both backtesting and forward testing are essential for refining strategies, spotting potential issues, and building confidence in the system. They provide valuable insights into the system’s performance and help identify areas for improvement.
Stress testing
Stress testing is used to determine how a trading system might handle extreme market events. Traders simulate various adverse scenarios, such as sharp trend reversals or significant geopolitical incidents, to see how the system would perform. While stress testing doesn’t predict all possible situations, it helps identify weak points that might be mitigated with adjustments like tighter stop-loss orders. As global events and market conditions are constantly changing, stress testing should be revisited periodically to keep the trading system updated and ready for unforeseen challenges.
TESTING GUIDE
THE STORY BEHIND OUR TRADING BOT SOFTWARE
Congratulations! You now master the theory behind crypto trading bot software. You’ve learned about its concept, the various types available, and what to consider when selecting a software package that matches your trading style. Next up, we’ll discuss our own software solution in detail, which is a combination of custom work on a platform called TradingView and our proprietary software. We’ll kick off with why we created it, and then dig into what our crypto bot system can do, weigh its advantages and disadvantages, and show how you can benefit from our solution.
Custom Trading Strategies
Existing software didn’t support the specific trading strategies we wanted to implement.
Lack of Order Execution System
There was no efficient system for executing orders in the manner we required.
Inadequate Technical Indicators
The available technical indicators didn’t meet our needs for analysis and decision-making.
Unique Market Insights
We wanted to incorporate our own market insights and analysis methods that weren’t available in existing solutions.
Control and Security
Creating our own software gave us greater control over security and the safeguarding of our strategies and information.
Customization and Flexibility
We needed the flexibility to quickly adapt and customize the bot software according to changing market conditions or our evolving trading strategy.
Cost Efficiency
Over time, having our own software could be more cost-effective than paying for a ton of expensive subscription services or dealing with limitations of free versions.
Lack of risk management
Existing software did not meet our risk management requiremens, ensuring that each trade aligns precisely with our specific risk-reward preferences.
Integration with Advanced Tools
We can integrate our software with advanced analytical and predictive tools, AI algorithms, or machine learning models that aren’t available in standard trading bot platforms.
Custom Reporting and Analytics
Having our own software allows us to create custom reporting features and analytics tailored to our specific needs, helping us make more informed decisions.
Community and Support
Building our own platform allows us to create a community of users with similar trading interests and strategies, fostering an environment of collaboration and support.
Reduce dependency
By developing our own software, we avoid dependency on third-party platforms, which may suddenly change pricing, features, or terms of service, potentially disrupting our trading activities.
PERFORMANCE
MARKETS ARE CYCLICAL
At Oxido Solutions, we understand that markets move in cycles, which is a fundamental part of our trading philosophy. Each cycle brings its own set of challenges and opportunities. We believe that the best trading setup and its software should be able to manage all types of market cycles and the associated price action, including:
Bull market
Rising prices, high confidence, and optimism dominate this upward trending market.
Bear market
Falling prices and pessimism mark this market, emphasizing caution and strategy.
Sideways market
Market fluctuates within a range, lacking clear direction, requiring careful analysis.
RISK MANAGEMENT PRIO 1
In our view, risk management should be at the heart of every trading strategy and crypto trading bot software. It’s all about spotting risks such as weak market trends or technological issues, figuring out how likely they are, and what impact they might have, then taking steps to keep them in check. Here’s why risk management is so crucial:
Avoiding Big Losses
Risk management in crypto trading bot software is like a soccer game’s defense. Without a trade loss cap, it’s like starting 3-0 down. Essential for preventing big financial losses.
Trading Longer
Good risk management means you can keep trading for a long time. It’s about managing how much you’re risking each time, so you don’t lose all your money in a few bad trades.
SMARTER DECISIONS
Keeping your cool is a big part of trading. With clear rules for how much you’re willing to lose, you can think straight and make smart choices, instead of just reacting in panic or getting too greedy, which can mess up your trades.
RISK MANAGEMENT
NO MANUAL TRADING
At Oxido Solutions, we’re convinced that success in cryptocurrency trading is more likely when using automated methods over manual ones. The vast majority of all trades are now executed by trading bots, enhanced with smart technologies like AI. This shift in the market means that it’s becoming harder for manual crypto traders to find success. Here are some key reasons why we have focused on automation in developing our trading strategies and cryptocurrency trading software:
Accuracy
Trying to trade manually at medium or high frequencies is tough because humans can’t process data as fast. Automated bots, on the other hand, can handle huge amounts of data quickly and make more accurate trades. They work all day and night, responding to market changes in an instant, something hard to achieve for manual traders.
Consistency
Trading can be emotional, and feelings like fear and greed often result in inconsistent trading outcomes. Automated trading effectively cuts out these emotional reactions, ensuring every trade strictly adheres to a predetermined, logical strategy. This disciplined approach aids in securing long-term profits and importantly, in avoiding substantial losses.
Adaptation
Adapting quickly to new market conditions is a challenge for manual traders, but it’s where automated systems shine. They can interpret market data as it comes, making informed decisions fast. This quick response lets our crypto trading bots take advantage of new opportunities right away, keeping them ahead in the ever-changing market.
THE TREND IS YOUR FRIEND
At Oxido Solutions, we are trying to capitalize on inefficiencies in the crypto market, guided by the philosophy ‘the trend is your friend.’ This concept implies that aligning your trading activities with the current market trend often yields better results than opposing it. This approach is rooted in the observation that market trends often persist for a significant period, fueled by momentum and investor behavior. Therefore, taking advantage of these trends is usually less risky and more straightforward than trying to predict when they will change. Here are some additional reasons why we designed our trading bot software with a trend-focused approach.
Viability
Markets are cyclical and naturally trend-sensitive. While the triggers for new trends might differ, as long as there is price movement, markets always present opportunities for trend-following traders.
Two-way gains
With a trend-following strategy tailored for derivatives, trading can occur in both rising and falling markets. This enables profiting from both upward and downward market trends.
Volatile-friendly
A trend-following approach is well-suited for highly active markets, such as the cryptocurrency market, where trends can be identified even in periods of significant volatility.
SPECIAL OFFER
OUR TRADINGVIEW INDICATOR
The ATR indicator has been developed to take advantage of the volatility in the cryptocurrency market, with a strong focus on risk management. It forms the foundation of our Binance trading bot, Bybit bot and OKX bot.The ATR is not only suitable for relatively quick price action but is also equipped to handle slower price movements characterized by clean swings. It is capable of performing well in various market conditions.
The ATR is particularly suited for both manual and automated trading in crypto perpetual futures but can also be applied to manual crypto spot trading. This indicator is capable of generating buy and sell signals based on your chosen parameters for automated trading strategies, such as BTCPERP, ETHPERP, and other derivative strategies. The ATR can also be used for identifying entry and exit points for long-term investments in Bitcoin spot and altcoins. You can configure this TradingView crypto bot indicator using the following parameter:
PARAMETER | VALUE |
Timeframe | 1 minute-1 year |
Ticker | BTCPERP & ALTSPERP |
Risk profile | low, medium, high |
Sideways filter | On, Off |
OUR ENTERPRISE MIDDLEWARE SOFTWARE
At Oxido Solutions, we found that existing middleware solutions fell short of our precise needs. In response, we decided to develop Alpha Shifter, a state-of-the-art middleware trading system. It effectively transmits buy and sell signals from various trading strategies to any specified endpoint. Recognizing the growing demand for a robust enterprise middleware layer among hedge funds, family offices, banks, and other professional entities within the finance sector, we’ve decided to offer Alpha Shifter not only as a part of our trading bot software stack, but also as a standalone software solution. Here is a list of the key features:
WE’RE OPEN TO COLLABORATION
Our software for manual and automated crypto trading has been demonstrably effective for trend-following strategies on medium to high timeframes. Our own setup for Bitcoin Perpetual Futures has been profitable since 2021. However, we haven’t established a track record for timeframes below 5 minutes. This might make our software less suitable for other types of strategies at lower frequencies. If you have middleware software developed for High-Frequency Trading (HFT) or arbitrage, we are open to exploring how our indicators could integrate with your infrastructure and potentially add value. We welcome the opportunity to test this collaboration without any obligation.
LET’S TALK!
OUR SOFTWARE PLANS
With Oxido Solutions’ crypto bot software, you’ve got all the technical tools you need to roll out a winning strategy in the cryptocurrency market. We believe in our solution, but we don’t expect you to take our word for it. We’re firm believers in “seeing is believing,” which is why we’re giving you the chance to test our software with a free and no-strings-attached 14-day trial before committing to a paid licensing agreement. Of course, if you’re ready to jump into the paid version right away, that’s totally fine too. Here’s a rundown of all the features you’ll find in both our free and paid plan.
FREE TRIAL | PAID | |
Duration | 14 days | ≥ 12 months |
Entry | 1000 USD | ≥ 500,000 USD |
Monthly license fee | None | 300 USD |
Monthly performance fee | None | 25-35% |
Asset type | crypto spot, crypto perpetual futures | crypto spot, crypto perpetual futures |
Notice Period | Daily | Monthly |
Features | Alpha Shifter and ATR | Alpha Shifter and ATR |
Support | All channels | |
BOOK DEMO | BOOK DEMO |