Shrimpy review: automate your crypto trading the easy way with portfolio rebalancing
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Shrimpy.io provides tools for crypto traders to manage their portfolio across multiple exchanges. It can be used to automate your trades, either according to a strategy you create yourself or by following other successful portfolio managers. You can also earn rewards if your performance is good enough for other members to follow your trading strategy.
Automated trading is a great way to maximise your profits from any market, but it can be especially useful in crypto. As much as we would all like to be able to catch every market move and spot every trade opportunity, sitting in front of a computer screen watching charts all day is just not feasible for most people. Even if you could do that crypto markets, unlike traditional financial markets, are open 24/7/365 and we all need to sleep at the very least. By automating your trades you can ensure that your strategy is being followed even when you are not around to do it manually.
This kind of automation, performed by pre-programmed bots authorized to use your exchange accounts on your behalf, is usually quite complex. It can be difficult and at times expensive to get into. Even if you you can find a tool which takes the software programming out of the equation for you, there can often be quite complicated maths involved in setting up the rules which your bot should follow.
Shrimpy takes a much simpler and easy to use approach than most bots, called ‘portfolio rebalancing’. What this means in practice is that you set which coins you want to trade, allocated a percentage of your portfolio to each, and then let it run. The percentage value (in dollar terms) of your allocation to each one then remains the same. So if one of your coins increases in value more than the others then the system will automatically sell a little to take profits and spread the proceeds out to maintain the same balance as your started with.
You can also use this same method to create indices. For example: you can choose to allocate 5% of your funds to each of the top 20 coins according to market capitalization. When doing this you can allocate the same amount to each one, or have them weighted according to market cap. You can also exclude coins or tokens which you don’t want to hold.
The automated rebalancing of your portfolio happens according to a schedule you create yourself. So you can set it to happen once per hour, or twice per week, or whatever suits your strategy. You can also choose to rebalance manually, which is useful for traders who still want to watch the markets and trade according to the news, but just want a tool to save them the time and hassle of having to calculate the exact amounts to trade and logging into various exchange accounts to execute the trades.
To help you when choosing which type of index of which basket of coins to include in your portfolio there is also a backtesting tool. This shows you how much you could have gained over a fixed period in the past if you had been using portfolio rebalancing, both in terms of dollar value profit and loss and compared to buy and hold.
To make things even easier and provide additional options to maximise your profits there is also a social trading section. This allows you to view the most successful portfolios, view their profits and losses over the past day, week and month, and if you choose to you can then automatically copy their trades with your own funds. Each of these portfolios are real trading accounts run by people who are putting their own money on the line.
If you have the times, knowledge and skills to create a successful portfolio then you can also earn rewards from anybody who chooses to follow your own trades.
A live feed allows you to view changes made to any of the available portfolios as well as to chat with other traders.
Shrimpy can be used across your accounts on a good range of different exchanges, including:
- Coinbase Pro
- Huobi Global
To connect an account you just need to log in to the the exchange, create an API key from your profile or setting page there, then select the exchange from the list on Shrimpy and copy and paste your API key and API secret which the exchange provided you with. For those of your concerned about the security implications of trusting your trade accounts to somebody else, you can choose to not give withdrawal privileges when creating the API key; if you do this it means that it would be impossible for Shrimpy to take your funds from the exchange.
I’ve tried out a couple of different tools for automated trading in the past and Shrimpy is definitely the easiest to use. The website design is very clear and uncluttered. The process of creating and backtesting a new portfolio is very easy to follow with nothing to confuse you or trip you up. Following other traders is even easier.
This simple user-friendly design fits well with the nature of the product they offer. You won’t find some of the more advanced features which are sometimes used to create bots trading off various complex indicators. But what you will find is a set of tools which are very quick and easy to use, require zero specialist knowledge or technical skill / aptitude, and which have the potential to significantly improve your trading.
Overall I would say they have implemented the concept very well and created a useful service, especially for people who are not currently using any kind of automation and people who don’t have their own strategy and just want to copy what has worked well in the past for others.
Website link: https://www.shrimpy.io