Introduction to Cryptohopper
Cryptohopper is a cloud-based automated cryptocurrency trading platform that allows users to execute trades 24/7 without manual intervention. Founded in 2017 by Ruud and Pim Feltkamp, Cryptohopper connects to major exchanges through APIs and executes trades based on technical indicators, signals, and custom strategies. The platform is designed for both beginners and experienced traders who want to automate their trading process, backtest strategies, and potentially improve trading consistency by removing emotional decision-making.
Core Concepts and Features
Platform Components
- Hopper Dashboard: Central control panel for managing your trading bots
- Strategy Designer: Visual tool for creating custom trading strategies
- Marketplace: Community-driven marketplace for signals, strategies, and templates
- Backtesting: Tool to test strategies against historical data
- Paper Trading: Simulation environment to practice without risking real funds
- Trading Terminal: Manual trading interface with advanced charting tools
- Mobile App: iOS and Android apps for on-the-go management
Subscription Tiers
| Feature | Explorer | Adventure | Hero |
|---|---|---|---|
| Price | $19/month | $49/month | $99/month |
| Max Coins | 15 | 50 | 75 |
| Exchange Slots | 1 | 2 | 3 |
| Min Trade Interval | 10 minutes | 5 minutes | 2 minutes |
| Triggers | 15 | 30 | 50 |
| Strategy Designer | Basic | Advanced | Full Access |
| Backtesting | 3 months | 6 months | 12 months |
| Trade History | 3 months | 6 months | 12 months |
Supported Exchanges
| Exchange | API Connection | Features Supported | Notes |
|---|---|---|---|
| Binance | Full | All features | Most popular choice |
| Binance US | Full | All features | For US users |
| Coinbase Pro | Full | Most features | Good for beginners |
| Kraken | Full | Most features | Excellent security |
| KuCoin | Full | Most features | Wide altcoin selection |
| Bitfinex | Full | Most features | Advanced traders |
| Huobi | Full | Most features | Popular in Asia |
| Bitvavo | Full | Most features | Popular in Europe |
Step-by-Step Setup Process
1. Account Setup
- Register at cryptohopper.com
- Choose subscription plan based on trading volume and feature needs
- Set up 2FA security for account protection
- Complete email verification process
2. Exchange Connection
- Generate API keys from your chosen exchange (with trading permissions)
- Enable IP restrictions on API keys for security (if available)
- In Cryptohopper, navigate to “Config” → “Exchanges”
- Enter API key and secret, set permissions correctly
- Test connection to ensure proper functionality
3. Hopper Configuration
- Create new hopper from dashboard (“Create Hopper” button)
- Name your hopper and select connected exchange
- Set base currency (typically BTC, USDT, or USD)
- Configure starting capital and allocation per trade
- Select which coins to trade (or use auto-configuration)
4. Strategy Implementation
- Choose method:
- Select template from marketplace
- Import custom strategy
- Create strategy with visual designer
- Subscribe to signals provider
- Configure buy and sell strategy:
- Technical indicators (RSI, MACD, Bollinger Bands, etc.)
- Trailing stop-loss percentages
- Take profit levels
- Rebuy configurations
5. Risk Management Setup
- Set maximum open positions
- Configure position sizing (fixed or percentage-based)
- Set stop-loss parameters (fixed or trailing)
- Define take-profit targets
- Configure dollar-cost averaging settings (if used)
6. Testing and Optimization
- Run backtests against historical data
- Start with paper trading to validate strategy
- Begin with smaller position sizes on live trading
- Monitor performance and make adjustments
- Track results using built-in analytics
Key Features and Strategies
Trading Methods
| Method | Description | Best For | Complexity |
|---|---|---|---|
| Technical Analysis | Uses built-in indicators to generate buy/sell signals | Traders familiar with indicators | Medium |
| Signal Subscription | Follows external providers’ buy/sell signals | Beginners, busy traders | Low |
| Copy Trading | Mirrors strategies of successful traders | Beginners, learning | Low |
| Custom Strategy | Create unique strategies using Strategy Designer | Experienced traders | High |
| Hybrid Approach | Combine signals with custom confirmations | Intermediate traders | Medium |
Essential Indicators and Settings
| Indicator | Common Settings | Buy Signal | Sell Signal |
|---|---|---|---|
| RSI | Period: 14 | Below 30 (oversold) | Above 70 (overbought) |
| MACD | Fast: 12, Slow: 26, Signal: 9 | MACD crosses above signal | MACD crosses below signal |
| Bollinger Bands | Period: 20, Deviation: 2 | Price touches lower band | Price touches upper band |
| Stochastic | K: 14, D: 3, Smooth: 3 | Below 20 and crossing up | Above 80 and crossing down |
| EMA Cross | Fast: 9, Slow: 21 | Fast crosses above slow | Fast crosses below slow |
Advanced Strategy Components
Trailing Settings
- Buy Trailing: Sets percentage to trail down when price drops before buying
- Sell Trailing: Sets percentage to trail up when price rises before selling
- Configuration example: 1-2% for low volatility coins, 3-5% for high volatility
Dollar-Cost Averaging (DCA)
- Rebuy Times: Number of additional buys during downtrends
- Rebuy Percentage: Additional investment for each rebuy
- Rebuy Trigger: Percentage drop that triggers rebuy
- Strategy example: 3 rebuys at 5% each after 10% drops
Position Sizing
- Fixed Amount: Same investment for each position
- Percentage-Based: Dynamic sizing based on total portfolio
- Kelly Criterion: Optimal sizing based on win rate and risk-reward
- Recommendation: 2-5% of portfolio per position for beginners
Common Challenges and Solutions
| Challenge | Description | Solution |
|---|---|---|
| API Connectivity Issues | Connection drops between Cryptohopper and exchange | Regenerate API keys; check IP restrictions; verify trading permissions |
| Over-Optimization | Creating strategies that work perfectly on backtests but fail in live trading | Use out-of-sample testing; avoid excessive indicator combinations; maintain simplicity |
| Signal Provider Dependency | Overreliance on external signal providers | Combine signals with your own confirmations; diversify signal sources; monitor performance data |
| Configuration Overload | Too many settings leading to confusion and suboptimal performance | Start with templates; add complexity gradually; document changes and results |
| Strategy Inconsistency | Frequent strategy changes without proper testing | Commit to strategies for minimum test periods; maintain trading journal; make data-driven changes |
| Poor Risk Management | Excessive allocation per trade or too many open positions | Follow the 2% rule; limit open positions; use proper stop-losses |
| High Fee Impact | Trading fees eroding profitability, especially with high-frequency strategies | Consider exchange fee tiers; adjust minimum profit targets; calculate break-even points |
Best Practices and Tips
Strategy Optimization
- Optimize one parameter at a time to isolate effects
- Favor simple strategies over complex ones (2-3 indicators maximum)
- Test strategies across different market conditions (bull, bear, sideways)
- Update strategies when market conditions change significantly
- Keep detailed records of all changes and their impacts
Risk Management
- Never allocate more than 5% of portfolio to a single trade
- Use trailing stop-losses to protect profits
- Implement take-profit levels based on historical resistance points
- Consider time-based exits for stagnant positions
- Set maximum drawdown limits and pause trading when reached
Operational Efficiency
- Schedule regular performance reviews (weekly/monthly)
- Create custom dashboards for key performance metrics
- Use notification settings for important events only to avoid alert fatigue
- Maintain a separate emergency fund for exchange deposits if needed
- Keep exchange API keys updated (rotate every 3-6 months)
Advanced Techniques
- Implement market trend filters to trade only in favorable conditions
- Create exchange-specific strategies to account for liquidity differences
- Use coin-specific settings for highly volatile assets
- Consider multi-timeframe confirmation for higher-quality entries
- Implement dollar-cost averaging for long-term positions
Performance Monitoring Metrics
| Metric | Description | Target | Warning Sign |
|---|---|---|---|
| Win Rate | Percentage of profitable trades | >50% | <40% |
| Profit Factor | Gross profit divided by gross loss | >1.5 | <1.2 |
| Average Profit per Trade | Mean profit across all trades | Positive | Declining trend |
| Maximum Drawdown | Largest portfolio value drop | <20% | >30% |
| Recovery Factor | Net profit divided by maximum drawdown | >2 | <1 |
| Sharpe Ratio | Risk-adjusted return measurement | >1 | <0.5 |
| Exposure Time | Percentage of time capital is invested | Strategy dependent | 100% in bear market |
Marketplace Navigation
Signal Providers Evaluation Criteria
- Track Record: Minimum 3+ months of verifiable performance
- Win Rate: Look for providers with >50% win rate
- Transparency: Clear explanation of methodology
- Sample Size: Minimum 100+ historical signals
- Consistency: Performance across different market conditions
- Reviews: Check community feedback and ratings
Strategy Templates Selection
- Examine backtest results across different time periods
- Check strategy performance in recent market conditions
- Review creator reputation and community feedback
- Verify strategy works on your preferred exchange
- Ensure compatibility with your subscription tier
- Test with paper trading before live implementation
Resources for Further Learning
Official Resources
Community Resources
Tutorials and Guides
- “Mastering Cryptohopper” by CryptoRobby (YouTube series)
- “Advanced Backtesting Techniques” by Cryptohopper Academy
- “Signal Provider Selection Guide” by HopperHacks
Getting Started Checklist
- [ ] Create Cryptohopper account and select subscription tier
- [ ] Set up 2FA security for Cryptohopper account
- [ ] Generate secure API keys on chosen exchange
- [ ] Connect exchange to Cryptohopper
- [ ] Configure base currency and trading pairs
- [ ] Select or create initial trading strategy
- [ ] Set risk management parameters
- [ ] Run backtests on selected strategy
- [ ] Begin with paper trading simulation
- [ ] Start live trading with minimal position sizes
- [ ] Create performance tracking system
- [ ] Schedule weekly strategy reviews