Quantitative investment strategies used to be the domain of hedge fund managers and the like. Can Napbots put them within the reach of us mere mortals?
- Trading strategies offered by Napbots
- Comparing Napbots to other products
- Compatibility with exchanges
- Security
- Ease of Use
- Factors For and Against
Napbots comes with an interesting pedigree. The company behind it (and the source of its name) is Napoleon Group, a Fintech that’s already been creating quantitative investment strategies for standard fiat currencies for more than two decades and has more recently been doing the same for cryptocurrencies, too.
Napbots focuses on the most liquid of these assets, so think coins such as BTC, ETH, BCH, XRP, EOS, BNB, and LTC. At present it lets you use 15 quantitative investment strategies on these which are designed to be simple and safe, and you can apply them to different time periods.
The newest strategy is a couple of years old now, and despite some recent choppy waters in the markets, the vast majority of all its strategies seem to have been pretty effective.
As reviewers, we think that Napbots may appeal to you if you want to automate all of your strategies from one location. The service can execute the strategies you tell it to and then let you track how well they’re getting on using the mobile app.
Trading strategies offered by Napbots
The first of Napbot’s quantitative crypto-strategies was created in the middle of 2018, and along with subsequent editions, they all base their trading on price. It lets you use trend-following and mean reversal approaches over weekly, daily, and hourly periods, and there are also model groups on offer, which you can use to test several cryptos. You’ll need to review the definitions and KPIs of each technique and ensure that you understand what they do before you put any of them to use.
Comparing Napbots to other products
In terms of ease of use, NapBots compares quite well with
other popular names like 3commas, Tradesanta and Cryptohopper. It’s worth bearing in mind that quantitative trading strategies were previously only available for people dealing with hedge funds, so it’s nice to see this kind of investing artillery filtering down to the general public. Setting up and installing NapBots is very straightforward and uncomplicated, so beginners shouldn’t have any trouble getting started.
Compatibility with exchanges
Napbots integrates with five of the best-known exchanges: Binance, Bitfinex, Bitmex, Kraken, and Bitstamp. It should also be able to integrate with OKEX and Huobi in the not-too-distant future. The advantage of including the main ones is that it gives you access to some of the most popular trading pairs. Some exchanges on the list seem to have been chosen because they offer better security, while others offer better liquidity, and all in all, there is a pretty good mix.
You can connect Napbots to one of the supported exchanges by creating an API key on it and adding it to your Napbots account.
Security
As we just alluded to, Napbots doesn’t ask you for any money because it uses the API key method to execute trades via the exchange, so that’s where your cash stays. Basically, your money is as safe as the exchanges you are signed up with can make it.
You’ll need to set up the API key yourself, and while doing so you’d be well advised to read what you’re signing up for. We didn’t find anything controversial in there, we’re just recommending this as good practice. You’re only giving Napbots permission to trade for you.
As we mentioned, the oldest NapBots strategy, BTC LO has been around on napoleonx.ai for a few years and it’s performed quite well in that time.
Its top strategy BTC/ETH/USD AR has been going since 2018 and nowadays has good annual performance, outperforming the underlying trend by 205%. This is a potentially more aggressive strategy because it offers the option of shorting. While that may sound attractive, it goes without saying that no tool is an Oracle, and that previous performance does not guarantee the future behavior of any asset.
Ease of Use
To get set up and going with Napbots takes just four steps. Napbots includes explanations of each strategy and KPIs for each that relate to the previous year’s worth of use.
Once you’ve settled on the right strategy you can commit to having the Napbots trading engine execute it. You can change your approach later as you become more experienced and confident in your abilities, but you’ll no doubt find it useful as a beginner to let Napbots make the decisions for you at this stage.
Overall, Napbots seems like a competent platform, but you’ll need to try it for yourself. Unfortunately, it doesn’t have a demo mode though, which seems like an unfortunate oversight.
Factors For and Against
Pros
- Quick setup and straightforward interface
- Signals marketplace
- Supports the main exchanges
- Secure
- Round-the-clock support
- Cloud-based
- Helpful community
- Created by experienced traders
- You can mix-and-match strategies
Cons
- New platform
- No free trial but does have simulator mode
- Only 1.5 times max leverage
