Shrimpy

Shrimpy is a social index-trading platform for cryptocurrency that focuses on long-term index automation and portfolio tracking. Shrimpy has some interesting combinations of tools and strategies that make it a unique bot. 

Its social trading feature also triggers the thought of collaborative investing and gives modern dimensions to crypto index-trading. Below are some of the features and tools that come with this bot.

Market Cap and Custom Indexing

Shrimpy has an intelligent indexing tool that makes it easy for traders to diversify their portfolios. Shrimpy allows the users to create their index with multiple parameters and automatic rebalancing.

This bot also allows traders to weigh their cryptocurrency index funds using the indexing tool automatically. A correct weighted index is a key to successful trading.

Shrimpy offers two types of indexing: Market Cap Weighting and equal weighting, which is based on an equal percentage of coins included in the trader’s portfolio. Diversifying portfolio decreases risk and enhances profit margins.

Portfolio Rebalancing

Rebalancing is an excellent trading approach that reduces risks and improves profit margins. This is a trading strategy where you develop a formula for allocating assets depending on the market conditions. Ideally, it involves changing your portfolio to meet your percentage criteria and enhance your chances of profiting from the market movements.

Shrimpy will automatically calculate the trades that need to be executed to rebalance the trader’s portfolio. Then it places the trades systematically on the trader’s exchange of choice to reach their desired portfolio allocation.

Shrimpy offers two types of rebalancing: time (periodic) rebalancing and threshold rebalancing. This strategy ensures that the risk remains within the trader’s desired level. It leads to risk mitigation and improved returns.

Backtesting

Backtesting is an important tool when developing a custom trading strategy. It involves running the new strategy through the past market environment to see how it would perform. It allows tasting any trading strategy or index with historical data to predict the success of the strategy or index.

You can backtest up to 5 years of detailed historical data, which is directly obtained from each exchange. 

Social Copy Trading

The social trading feature allows users to copy other traders' strategies if they like them. Users who share their trading strategy are paid $4 per month for each person who copies their strategy. This is ideal for new users since they can automate their trading strategy without necessarily learning all the aspects of trading.

Shrimpy Universal Crypto Exchange API

Shrimpy APIs provide an effective trading solution for teams developing trading products and high-frequency trading strategies. It allows users to access live market data and complete order book to make timely trading decisions. This tool is the foundation for developing effective crypto trading products that are competitive with algorithmic trading bots.