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Hodlbot Review 2024: Strategies & Pricing
Luis Clark
- URL: https://www.hodlbot.io
- Year Founded: 2018
- Pricing: $3 to $14
- Free Trial: Yes (7-day free trial no credit or debit card required)
- Payment Options: Bitcoin, Litecoin, Bitcoin Cash, Ethereum, and Ethereum Classic
- Supported Exchanges: Binance, Kucoin, Kraken, and Bittrex
- Cloud Based: Yes
- Reported Profitability: No set percentage depends on the particular strategy used
- Customizable Strategies: Yes
- Scalping: No
- DCA: No
- Arbitrage Bot: No
Hodlbot Review: Our Opinion
Hodlbot is a customizable cryptocurrency trading bot with a small selection of trading strategies. The bot is very limited but affordable.
It is one of the cheapest crypto trading bots you can find on the entire cryptocurrency market and it allows users to keep all returns generated.
Hodlbot trading bots aren’t for advanced crypto traders who would find its crypto trading bots basic features too simplistic.
Intro/Company Overview About the Hodlbot Creators
Hodlbot was founded in 2018. The company offers several automated crypto trading services including crypto trading bots, automatic portfolio rebalancing, custom portfolios (cryptocurrency portfolios) Hodlbot trading bot customization, and connection to 4 leading cryptocurrency exchanges.
The trading bot platform is used as a portfolio management program that indexes the entire cryptocurrency market and enables users to maintain their crypto portfolio. It has facilitated over 50 million USD in trading volume and more than 400,000 transactions. Users have also created over 20,000 custom portfolios based on advanced market metrics on the platform.
Pros
- Affordable pricing plans
- Easy to use
- Customizable strategies
Cons
- Limited features
- No advanced trading tools
Hodlbot Review: Unique Features
Hodlbot Utilities
The utility feature allows you to customize your trading strategies and have greater control over your account. Below are some of the trading strategy features that can be edited:
Coin Blacklist
This feature allows you to blacklist coins that you do not want to have in your index. When you blacklist a coin, it will be removed from your portfolio and replaced with the next highest coin by market cap.
Cash Out
With Cash Out, you can liquidate your portfolio whenever you want. To do this, simply use the Cashout feature to convert a percentage of your portfolio into any coin.
Hodlbot treats cash out as a rebalance. Once the cash out is completed it will reset your future rebalance date.
Manual Rebalancing and Rebalancing Period Customization
This feature allows you to change the frequency with which Hodlbot rebalances your portfolio. You can also manually rebalance your portfolio with this feature.
Portfolio Rebalancing
Portfolio rebalancing is the practice of resetting your portfolio to its original target allocation after the market shifts. Portfolio rebalances generally lead to improved returns and risk mitigation.
Hodlbot allows you to manually rebalance your portfolio or change the frequency of rebalancing.
You can also disable rebalancing by either setting your rebalancing period to a ridiculous duration like 1 million days or by disabling Hodlbot services.
Here is an example of how portfolio Rebalancing works on Hodlbot:
If you wanted to keep a portfolio with 50% LTC and 50% XRP, the price of XRP relative to LTC may increase, this will cause your portfolio to have 70% XRP.
During the portfolio Rebalancing, the system will sell some XRP and use the funds from the sale to buy LTC.
This returns your portfolio to the original target.
Hodlbot offers different Rebalancing methods:
Periodic Rebalancing
With this method, Hodlbot automatically rebalances your portfolios to their target allocations on a fixed time interval. The interval for the Rebalancing can be weekly, monthly, quarterly, or yearly.
Threshold Rebalancing
With Threshold rebalancing, rebalances are triggered when the market shifts and an asset deviates from its target by more than the acceptable range/threshold. The threshold is usually between 5% to 10%.
Range Rebalancing
This is similar to threshold rebalancing, the only difference is that instead of rebalancing back to the target percentage, asset allocations are rebalanced to the maximum threshold.
Active Rebalancing
Active portfolio rebalances happened based on human judgement.
Volatility-based Rebalancing
This is just like threshold rebalancing but Hodlbot automatically rebalances based on each asset’s volatility. The more volatile the asset, the wider the rebalancing threshold.
Customized Portfolio
The customized portfolios feature allows you to construct dynamic portfolios with advanced market metrics.
To create your cryptocurrency portfolio, you need to first select the coins you would like to include in your portfolio.
To add the selected coins, search for the coin by its name, 24H price change, symbol, or market capitalization.
The list contains all the cryptocurrencies available on the Binance exchange.
Once you find the coin, click the “+” sign to add it to the portfolio.
Once a coin is added, it will be highlighted in purple.
You can further customize your portfolio using the steps listed in the Customizable Strategies section.
Supported Crypto Exchanges
Hodlbot currently supports only 4 crypto exchanges: Binance, Bittrex, KuCoin, and Kraken.
Hodlbot Review: Trading Strategies
Hodlbot only offers 3 preset trading strategies. If you want more you have set up custom strategies using their advanced market metrics.
HODL20 Index
This trading strategy works by taking the top 20 coins and assigning each coin a percentage allocation based on their weighted market capitalization.
Then the bot caps every coin to be at most 10% of the entire portfolio value.
Anything over 10% gets redistributed to all coins under 10% till the total sum of the portfolio adds up to 100%.
The HODL20 makes up approximately 87% of the cryptocurrency market.
HODL30 Trading Strategy
The HODL30 is a 30-coin index that uses a unique indexing strategy. With the HODL30 the top 30 coins capture approximately 92% of the entire market cap.
HODL10 Trading Strategy
The crypto trading bot uses the HODL10 trading strategy over the HODL30 when you have a much smaller custom portfolio (under $200 for example).
Hodlbot Review: Customizable Strategies
Hodlbot allows all users to create a custom cryptocurrency index as long as they have a Binance account.
To create customized portfolios, the first step is to choose the number of coins in your dynamic portfolio or custom portfolio and set percentage caps. Hodlbot allows you to create a cryptocurrency index comprised of top N coins.
For instance, ranks 1 to 20 capture the top 20 cryptocurrencies by market cap. Hodlbot also allows you to create small-cap and mid-cap indices with differing configurations like 80 to 100 or 20 to 40.
The next step would be to select a weighting strategy after you’ve chosen your coins and set your desired percentage caps.
Hodlbot gives you 3 options to do this:
- Evenly Weighted: With this, every coin in your custom portfolio has equal weighting.
- Market Capitalization Weighting: With this weighting strategy, coins with bigger market capitalizations are weighted heavier. So the percentage of any particular coin is the crypto’s market capitalization value divided by the overall market capitalization value of every coin in the dynamic portfolio.
- Square Root Market Capitalization Weighting: This weighting strategy holds a similar function to maximum percentage caps and because the crypto market is top-heavy, collecting a square root market capitalization takes away some of the weightings from the highest capped cryptocurrencies in favor of the lowest capped assets.
The second to last step is that Hodlbot allows you to backtest your strategy. So after creating your cryptocurrency index comprised of your preferred coins, you need to run a backtest against historical data to see how your dynamic portfolio would have performed in the past.
Fees and portfolio rebalancing are considered for the backtest.
Lastly, you need to save your customized portfolio and execute it right away if you’re pleased with the backtest outcome.
You have the option to specify the frequency of your portfolio rebalancing. Typically, rebalancing a portfolio helps in restoring it to its initial allocation, which often changes due to variations in market prices.
You can also blacklist certain coins and remove them from your cryptocurrency portfolio. When you replace a coin the bot replaces it with the next highest market cap coin.
Hodlbot Review: Plans and Pricing
The institutional portfolio management software, Hodlbot, offers 3 pricing plans based on the size of your dynamic portfolios. This it says is to keep their trading bot service affordable to users with smaller account sizes.
- Pricing for Portfolio Account Value Under $500: For this size of dynamic portfolio, Hodlbot charges $3 per month.
- Pricing for Portfolio Account Value Between $500 to $1,000: Hodlbot charges $6 per month for cryptocurrency portfolios of this size.
- Pricing for Portfolio Account Value Between Over $1,000: For this account portfolio type, Hodlbot charges $14 monthly.
Hodlbot Review: Payment Methods
Hodlbot supports the following cryptocurrencies as subscription payment methods: Bitcoin, Litecoin, Bitcoin Cash, Ethereum, and Ethereum Classic.
Opening a Trading Bot Account
To open a Hodlbot trading bots account, go to https://hodlbot.io and tap on Sign Up.
Enter your email address and password.
Click on the verification link sent to your email address and you’ll be redirected to your Hodlbot trading bot account.
That’s all!
Setting Up Hodlbot Trading Bot with Exchange
To set up your Hodlbot trading bots log into your Binance account, for example.
Go to Profile then API Management and the Create New Key.
Once it generates your API Key and Secret Key copy them and keep them safe as Binance will not show them to you again.
Go to Hodlbot and the Account Setup and input the API Key and Secret Key in their respective fields.
Click on Verify Keys.
That’s it! Hodlbot now has crypto trading privileges on your Binance account. You can simply select a strategy or create one to get started.
Trading Experience/Using Hodlbot
The Hodlbot is primarily a portfolio management service that allows you to construct dynamic portfolios for cryptocurrency index trading.
It doesn’t offer popular trading strategies like DCA or arbitrage and has basic advanced market metrics for creating custom strategies.
Hodlbot Review: Security
Hodlbot is a software tool, not an exchange, and does not have access or control over the funds on your exchange account.
Access to your crypto exchange account is through your API keys.
You have full control of your API keys and you can delete them whenever you please.
Hodlbot only requires API with trade access.
API Keys with withdrawal access are automatically rejected. This means that nobody can withdraw funds from your exchange account.
HodlBot encrypts all user data and keys on its back end with cryptographically secure hash functions.
It also monitors logs and shuts down trading if there is any suspicious activity on the account.
HodlBot also conducts regular penetration testing.
Hodlbot Review: Customer Service
The HodlBot team can be contacted via email at founders@hodlbot.io. The platform also has a FAQ page with answers.
Besides the email, there is no other clear channel to contact the customer support team.
Information on the website shows that Hodlbot has a Telegram community, but the link has expired.
Does Hodlbot Offer Education?
No, Hodlbot does not offer crypto education. It has a blog but the information on it is basic news about the crypto industry. However, it features guides on how to use its trading bots.
Hodlbot Review: Final Thoughts
Hodlbot is a basic portfolio management solution that enables users to automatically rebalance their portfolios and create custom portfolios.
It features basic services and isn’t for advanced crypto traders. Beginners will also find the platform a bit confusing, which makes it an ok option for intermediate traders.
While this bot offers advanced tools and strategies, there’s a world of options out there. For insights into another leading bot, check out our ProfitTrailer Review. And for a holistic view of the top bots, click here.
FAQ
Most frequent questions and answers
There are no given profitability percentages mentioned by Hodlbot. However, some users have claimed to experience profits of up to 10% monthly while other active traders fail to profit using the service.
The best crypto trading bot depends on the strategy it uses and if that technique is one you understand.
Bot trading is as safe as the trading strategy the bot uses. If the strategy is bad then you can lose all your funds. Studies have shown that 95% of active traders fail to beat the index, so it is best you use a good strategy that can increase your chances of success.
If you understand the objective and use case of a cryptocurrency as well as believe based on personal research that it will rise in value, holding it is a good idea.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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