While there is heavy competition among cryptocurrency signal providers, the algo space for cryptos has been quiet for a long time – but it is starting to get some attention too, these days.
I think the reason for this is quite obvious. Setting up a signal service (free or paid), is far easier than developing an algo to trade the market automatically. This is especially true if we discount the importance of the service / algo being able to generate profit on the basis of the signals/algorithm provided.
Anyone can set up a website these days, requesting payment in return for promises to make you money via suggested buy and sell ideas on the crypto market.
Developing an actual algo to execute trades (preferably profitable ones) is a completely different ball game. It takes time to learn everything there is to the whole crypto space. Developing the algo framework requires experience in coding and making it profitable requires deep knowledge on markets, trading technicalities, lots of persistence and a chunk of luck.
there will be a market for crypto algos
With crypto trading getting more commoditized it is easy to see why there is an increasing interest in the algo trading area, in this market. With the extensive media coverage during the last bitcoin and altcoin bull run, everyone knows there is a potential for a quick buck, trading the cryptocurrency market. Yet, the majority of these people won’t participate for all sorts of different reasons (lack of time, knowledge, funds, etc.) – many of these reasons can be eliminated with the introduction of an automated trading system – a crypto trading algorithm.
We saw exactly the same trajectory in the FX market back in the early days. When online trading terminals became the new normal for people on main street, the signal service space became overly crowded. In the following years, FX algo’s received more and more attention.
I expect we will see a very similar evolution in the cryptocurrency market – and Mudrex is here to facilitate the beginning of just that. A drag and drop webapp to help us create, backtest and deploy our strategies for cryptocurrencies on multiple exchanges without writing code.
crypto algo - without coding
Mudrex is currently integrated with binance and bitmex. As far as I can tell, this is free of charge (but I imagine this is only for the time being). While the drag and drop editor might have a little learning curve, I am sure this will be far easier than learning how to develop crypto algos from scratch. They also have a bunch of sample strategies to help you get started.
I have not tested this yet, but I plan on giving this a go in a near future. I do have a couple of strategies in mind, that would be fun to backtest.
If you have been looking for a way to automate your trading strategies on the crypto market, this might be for you.