A Word From Alpha Algo Founder
Alpha Algo is a crypto trading platform offering automated algorithmic trading. It was developed by @coinpocalypse, a cryptocurrency trader since 2017. Before we go any further, read a brief introduction from Alpha Algo founder and get a glimpse of his background.
It all really started with having personal issues concerning risk management and keeping positions open overnight and in the weekend, as the 24/7 crypto market absolutely wreaks havoc on your sleep and weekends.I wrote some algos and started writing about that on Medium as a way to reflect on what I’d learned, moved over to Python – because of the Pine Script limitations – and as I got more into actual coding, I started to think about creating this accessible platform that people could use to copy trades and manage their own risk through offering settings to determine trading size, leverage and stop loss.
With recently adding CryptoUB’s algo to the platform and TradeTosser macro algo and Milk & Cookies RL algo coming up, there’s a lot to look forward too and working with them has given me a lot of insight in how to improve upon αlpha Algo itself. With a lot of hard work and feedback from early testers, I’m proud of what it’s become, and there’s a long list of upcoming features to improve every part of it. It’s been amazing seeing it grow from a couple of scripts to a full-blown application and I’m excited for what’s coming!
Alpha Algo Introduction
Trading can be a very risky and aggravating task. Acquiring necessary skills and knowledge is a time consuming and often expensive task. Many users are searching for a set and forget solution. Alpha Algo is precisely that. It offers a growing selection of trading algorithms and a platform that automatically executes trades based on specific, personalized strategies. Each user can fine-tune various parameters and find winning combination based on his unique style.
Alpha Algo Platform Overview
Alpha Algo currently has three exchange integrations. BitMEX, Binance, and FTX are fully supported. More exchanges will be added as the need arises. There are several trading algorithms available with further additions pending, more on that in the next section. Each algorithm has several required settings that need to be configured before trades can be executed on an automatic basis. This is the part that needs to be taken seriously. Options need to be configured carefully with proper risk management. Always remember that the most important thing is to stay in the game. Keep your emotions in check and use leverage sparingly.
The more users use a specific strategy, less effective it becomes due to various reasons. Hence Alpha Algo caps liquidity for each algorithm which decreases slippage and keeps its performance optimal. Alpha Algo matching engine is fast, and orders are executed in a timely fashion. Order notifications are also available.
Alpha Algo Signals
Coinpocalypse has built a great platform, but when it comes to profits, it is only as good as the signals it uses. This is the trickiest part to get right. It is up to users to select the strategy that suits their strategy and risk appetite. Currently, there are five different algorithms available which are split into four subscription plans. More algorithms are planned. Algorithm outline is available below. All subscriptions are monthly.
Coin’s (CP) strategies
- Price: 0.015 BTC
- Maker: @coinpocalypse
- Timeframe: 1 hour
- Additional Info: By subscribing to Coin’s, you also get WF algo listed below, they are in the same package.
Wildfire (WF) strategies
- Price: 0.015 BTC
- Maker: @treypeng
- Timeframe: 30 minutes
- Additional Info: Community favorite “Chad” algorithm.
- Price: 0.0035 BTC
- Maker: @tradetosser
- Timeframe: HFT (high-frequency trading)
- Additional Info: More information, as well as performance reports, are available here.
- Price: 0.03 BTC
- Maker: @CryptoUB
- Timeframe: 5 minutes
- Additional Info: Some statistics are available here, and the algorithm description is available here.
- Price: 0.005 BTC
- Maker: @CryptoGainz1
- Timeframe: Various intraday charts
- Additional Info: Many different strategies are available for different coins.
As you can see, there are many different algorithms available, and more will be added over time. If you feel overwhelmed, contact @coinpocalypse for any clarification you may need.
Alpha Algo Automatic Trading
The way Alpha Algo works is simple for the end-users. First you need to let the platform access your exchange account through API so that it can create and adjust orders as required. Withdrawals are disabled of course, so you don’t have to worry about that part. Next you need to select strategy you want to use, set parameters that meet your risk appetite and that’s pretty much it. Sit back and enjoy the magic of automated trading. All that is left is to check performance and adjust parameters as needed. Setting platform up is quick and easy, but fine-tuning specific parameters can take time to get right depending on your experience.
Initially, there was no take profit parameter available, so the way the platform worked is by switching from short to long and opposite positions. The position remains open until the algorithm changes its market bias. Keep that in mind and avoid getting your stops hunted down. However, few days ago, take profit option was added which changes the game and adds another parameter you can adjust to suit your risk appetite.
So to recap, this is how the Alpha Algo setup process looks like:
- Setup API keys on the exchange you want to use,
- Tip: create a fresh account dedicated to Alpha Algo,
- Connect Alpha Algo and allow API access,
- Select the appropriate strategy,
- Adjust trading parameters,
- Do not rush this step, give it some thought,
- Let it do the heavy lifting.
The list of available Alpha Algo parameters can be seen below.
Community member Mintpal_Ghost did the heavy lifting and went through all the data and created a performance report for the two most popular strategies on Alpha Algo. Backtests for the Coin’s (CP) and WildFire (WF) algorithm can be seen below.
As you can see, CP outperformed WF algorithm, but both are profitable over the course of 4 months. As you will see from our results below, in many cases it might be the best decision just to let the algorithms run on default settings coupled only by small leverage if you want to live on a riskier side.
@coinpocalypse provided us with free access to the platform, and we tested it over the course of roughly two months to get a good feel for the platform. We created a test BitMEX account, deposited 0.02 BTC and let it run on autopilot. We picked Wildfire algorithm and configured it as can be seen below. Since macro BTC outlook is bullish, we lowered short percentage, but as it turns out this was a mistake. We used lenient SL to avoid stop hunts.
The bot did 55 trades in total, and 21 of them were profitable. Which resulted in a 29% loss. Screenshot from BitMEX can be seen here. Majority of trades were executed automatically, and we weren’t interfering with the process except a few times when we executed take profit order for testing purposes. The results weren’t great as most of the time BTC was going from one chop zone to another. As with manual trading, it is important to identify favorable trading conditions. If there is no clear market direction, it is better to stay out. Otherwise you get chopped as we did. Results would be much better if we manually took profits off the table at certain percentages as Wildfire algorithm often takes its time before changing positions. Hence community colloquially calls it “Chad bot”.
The platform worked as expected, and the setup is remarkably easy if you are familiar with basic trading jargon. Orders were managed as expected, and we didn’t encounter any issues.
Community Discord Server Overview
Alpha Algo Discord has 228 members and is filled with informative bots and notifications. All position changes are relayed, and you can check your position status at any time without logging in to the exchange. You can PM the bot or check in public channel, whatever you prefer. Server activity is based mostly on market conditions, but the founder is often online and ready to answer any questions. Feel free to look around and ask any questions you may have.
Time to wrap things up. You can sign up for Alpha Algo here, and give it a test run on BitMEX testnet. Premium subscription prices depend on algorithms that you select and range from 0.0035 to 0.03 BTC per month. The prices are similar to what is usually paid for the average paid group and are more suited for larger accounts. Small accounts will hardly profit enough to cover the subscription costs. Ultimately, you can think of Alpha Algo as an interesting paid group alternative. After reading this review you should have a good idea of what you are paying for, there shouldn’t be negative surprises as is often the case with paid groups. @coinpocalypse is not trying to sell the dreams as he likes to say. For best results, try to avoid sideways, choppy zones. Current algorithms work best in trending market conditions. However, don’t think for a second that Alpha Algo is a magic money printing machine; it is far from it as can be seen from our results. Its performance depends on market conditions, mix of strategies and individual parameters that you select. Backtests show solid results over a longer time period, so play around and see what works for you.
In closing, we would like to thank @coinpocalypse for pleasant cooperation, and Jurko who introduced us to the Alpha Algo trading platform. Tweet us your thoughts regarding Alpha Algo and automated trading in general.
Petar & Ana