Crypto Bot Trading Software
Gain the ability to test and improve your trading strategies to find the best entry and exit points. No coding required.
How Crypto Bot Trading Works with BuildAlpha
Step 1 – Select Cryptocurrencies and Timeframe Choose the symbol or symbols to build algo trading strategies for. Selecting a single cryptocurrency will return the best strategies for that market. Selecting multiple cryptocurrency pairs will return the best trading systems that work across that basket.
Step 2 – Entry and Exit Signals Build Alpha has over 6,000+ built-in entry and exit signals that can be completely customized and optimized. Here is a short list of what is available all point and click.
- Seasonality, time of day, weekday, month, quarter
- Price Action, Chart Patterns, Japanese Candlesticks
- Volume analysis, Volatility measures
- Full Technical Analysis library and Technical indicators
- Market breadth, Tick, TRIN, Internals
- Economic News and Events such as GDP, Jobs Reports, Inflation
- US Treasury Yields and Spreads
- Volatility Index Term Structure
Traders can also set parameter ranges for optimization. The below example shows the Close crossing above the Simple Moving Average and would test the 10 period to 200 period SMA incrementing by 10.
Step 3 – Automated Strategy Filtering Save time during the strategy development process by having Build Alpha only return trading bots that meet your pre-defined performance metrics. There are tons of built-in metrics to choose from.
Step 4 – Simulate Hit Simulate and Build Alpha’s genetic algorithm will begin generating strategies for you. The machine learning will begin to analyze your inputs, the historical data, and start building the best crypto trading bots that meet your requirements. The results window will continuously update with better strategies and can be paused or stopped in the upper left-hand corner anytime.
Step 5 – Validate Backtest results are known to lie to traders. Build Alpha is widely considered the best algorithmic trading software because it is uniquely equipped with institutional grade robustness and stress tests. These validation methods help identify strategies that are more likely to continue their performance.
Read the complete Robustness Testing Guide here.
Crypto Bot Trading Features
Time Filters and force end of day exit
Crypto trading presents different opportunities throughout the day as Asia, Europe and America wake up, go to lunch, and go to bed. Some of the most reliable trading patterns are centered around time of day anomalies. I released one of the most popular intraday algos here. Below is simply trading BTCUSD long for two hours per day and going short for three hours per day. Which times of the day can make a large difference.
Build Alpha enables you to set and require time filters so buy and sell orders are only issued when desired. You can also turn on and off the force end of day exit option which forces a trading system to close all positions at a pre-determined time.
Fractional Sizing for Crypto Trading
Build Alpha now supports fractional sizing so traders can create crypto trading bots and algorithmic trading strategies with accurate position sizes for cryptocurrencies. Previously Build Alpha only supported TradFi futures, stocks, ETFs, and foreign currencies; however, now Build Alpha supports spot crypto trading as well as futures.
Economic Data and events
Markets move primarily due to macro factors like interest rates and economic news. Build Alpha has a full library of historical and updating news events and economic data such as:
- Gross Domestic Product
- Nonfarm Payrolls
- Consumer Price Inflation
- Purchasing Manager’s Index
- Fed and FOMC Interest Rate Decisions and Minutes
- Treasury Auctions
- Factory Orders
- Consumer Confidence
- and more
You can now build algorithmic trading systems that avoid these new releases or capture the volatility around these events. To find the available testable news events in the platform simply type ‘News’ into the Filter window. You can then build strategies that trade N days before or after news events or various other ideas.
Crypto Chart Patterns and Automated Technical Analysis
New crypto traders and algorithmic trading system developers rarely see eye to eye on trading tools as the former often prefers fancy charts and trendlines and the latter is looking for objective data to determine an edge in the market.
However, Build Alpha has quantified and made chart patterns testable. Crypto traders can now easily select various crypto symbols and their favorite chart pattern and test its profitability, adjust stops, add targets all point and click. All chart pattens can be included as entry or exit signals in trading bot creation.
Here is a quick 15 second video showing how to test Bitcoin (BTCUSDT) and Ethereum (ETHUSD) with the ascending triangle pattern using a 2 ATR stop and a 2.5 ATR profit target. Click image to view.
Monte Carlo Simulations
Trusting automated trades can often be difficult without proper testing and dissecting of the trading bots being used. Simulating a strategy over various market conditions and risk events can often be gamed and provide misleading results (known as overfitting). Experienced traders know better and employ various validation methods.
The most popular methods are typically Monte Carlo Simulations which inject randomness into the trade results or market data to produce new equity curves. This can help better determine the possibilities of drawdown or the sequence trade returns may follow.
Build Alpha has various Monte Carlo Tests available at the click of a button including
- Monte Carlo Reshuffle
- Monte Carlo Resample
- Monte Carlo Permutation
- Monte Carlo Randomized
- Monte Carlo 1-10
- Monte Carlo Equity Bands
- Monte Carlo Drawdown Testing
All of which are explained with examples in this Monte Carlo Simulation guide.
Computer Specifications for using BuildAlpha
Strategy generation and the genetic algorithm can take various amounts of time and often depend on a handful of factors:
- Computing power (number of CPUs, CPU speed, RAM, hard disk speed)
- Amount and interval of your data
- Parameter and variable complexity
- Number of signals and settings selected
However, in short, Build Alpha needs about 8GB RAM. The better your CPU or the more cores you have the faster Build Alpha will operate. Build Alpha splits the task at hand across all available CPU power to speed things up.
Binance Trading Bot Integrations
Build Alpha generates fully automated code for all trading strategies at the click of a button. But now supports full live data feeds from Binance to live monitor any crypto trading strategy Build Alpha generates. To monitor a strategy live follow these steps:
- Save the strategy to Portfolio Mode
- Log into Binance from top menu
- Right-click on saved strategy and ENABLE Live Simulation
Additionally, traders can monitor trading bots live in Build Alpha using the built-in data connections. Traders can connect to TradeStation, QuoteMedia, Binance or Interactive Brokers to receive real-time prices, live P&L updates, and position changes to their saved strategies.
Frequently Asked Questions
How much data is available?
Build Alpha has full crypto database going back to inception for many coins. BTCUSD back to 2016 and working on acquiring reliable data for prior. There is 1 minute data going back to 2017 in the database subscription offered with the Build Alpha license. Users can also download free data or import from their broker or provider. Build Alpha also supports Binance integration with more coming.
Can I Import my own data?
Yes, Build Alpha accepts data in both txt and csv format. There are also various converters for the most popular platforms. If you have a question about getting your custom data into Build Alpha, please send me an email. I am sure it is possible!
You can import price data, alternative data, custom data, etc. There are no limitations on the importation of custom data for trading bot development.
Are there sample strategies or trading bots to start?
Yes, there is a starter pack of ten simple strategies that come with the license. There are also various strategies on the blog and private forum. However, these strategies are meant to be building blocks and not meant for copy trading or blindly following trading bot service. This type of behavior is dangerous to a trading account and how many lose money!
Can I edit transactions costs like slippage and commissions?
Yes, absolutely. Slippage and commission are customizable in the settings menu. You can also choose to apply the spread or transaction cost on a percentage basis or on the total notional value of the trade.
Can I do Intraday or Day Trading Strategy Development?
Yes, Build Alpha is intraday automated trading software, too. There are specific features designed for day traders or intraday strategy development. Below is a short-list:
- Force End of Day Exit – turn on or off to avoid overnight trading
- Time windows – set specific hours to permit trading
- Intraday Edge – search for profitable intraday windows from a daily strategy
- Intraday Algo Hidden Checks – find optimal number of trades per day, max P&L per day, times to trade, etc.
Does Build Alpha support crypto trading?
Yes, Build Alpha does support crypto data, trading bot development, strategy testing, and more. You can also get live and historical data from Binance with a few other connections coming soon.
What is a Trading Bot?
A trading bot is an automated trading system or mechanical trading system with predefined rules that execute buy and sell orders automatically whenever the preset rules are true. A rudimentary example of a crypto bot or algo trading strategy is to buy at this time and sell at that time. Another example is to buy when price crosses above a moving average and sell when price crosses below a moving average. Of course, Build Alpha effortlessly enables the creation of more sophisticated crypto trading bot strategies with its no code strategy builder interface.
About Build Alpha
Build Alpha is a no code strategy builder and algorithmic trading software designed by David Bergstrom. David has spent the last decade-plus in the professional algorithmic trading world working with high frequency trading firms, hedge funds, and registered investment advisors (RIAs). His experiences and mentor have led to a series of repeatable processes to find, create, test and implement algorithmic trading ideas in a robust manner. Build Alpha is the culmination of this process from idea to execution.