Frequently Asked Questions
SmithBot is a cloud based platform for the automatic trading of cryptocurrencies. Its engine runs AI algorithms to find the best and most profitable trades for you. It is completely automated, so besides of deciding the bots you want to subscribe, there is no need for you to monitor and analyze the markets and to make manual decision.
The SmithBot algorithms were developed mainly with three goals in mind:
- Eliminate all sources of human error in trading
- Make it easy to trade profitably
- Maximize the profits under real conditions (considering factors like trading fees, delays and so on)
The SmithBot application was created for
- Maximal transparency of the bots‘ performances
- Security, using state-of-the art access control and encryption
The trade engine monitors the supported markets 24/7 and feeds the data into the algorithmic trading bots that generate trading signals. If you subscribe to one of the bots, its trading signals will be executed as buy and sell orders at your exchange.
SmithBot's AI provides flexible models that can adapt to complex patterns in the market data, even if they are not visible for human analysts. The models are trained on a large number of historical data points to learn the real market behavior and maximize the profitability. SmithBot continously monitors the market and it's algorithms evaluate if the conditions for a trade with a high chance of profit are met.
We don't fit precisely in a classical category. However, in a very simplified view, the algorithms currently implemented are executing a long and short strategy at the same time. That means, the algorithms decide when to go long and when to go short, so no need for you to decide when to switch. This eliminates another source of human error which can impact your profits.
We have developed a very detailed market simulation that considers all relevant real-life factors, such as trading fees and communication delays, to back-test our algorithms with historical market data. We confirmed in comparisons to live tests of the bots that these simulations gave indeed the same results within a very small margin. In addition, all our bots undergo a period of live testing before we deploy them.
The best clue you can get is by analyzing the historical performance of the bots with our free demo account. There is a good chance that the performance in the future will be similar. However, keep in mind that this cannot be guaranteed. E.g. the underlying patterns in the market data can change and this could impact the future profits. No reputable provider would ever promise or guarantee future profits.
No. The SmithBot algorithms are optimized for maximal return under real trading conditions that apply to the majority of non-institutional traders. That means, we have to deal with trading fees, slippage, communication latencies and so on. Under these conditions, high-frequency trading is not profitable as the fees can eat up all your profits. Therefore, the average trading frequency of our typical bot is about one to two orders per week.
Over longer periods of time, the bots we deploy always showed significant positive returns in our extensive testing. Please note that there were also periods of temporary underperformance which can last from days to several month. The algorithms are trained to maximize the returns in real-life scenarios in the long run, which means they sometimes accept suboptimal results for some period of time in return for huge performance gains during other periods.
You can trade popular cryptocurrencies like Bitcoin, Ethereum and many others that are quoted in US dollars, euros and sometimes other FIAT currencies. The pairs quoted in US dollars can also be traded with USDT. We are continuously expanding the selection we offer you. To see the pairs currently available, register for a free demo account and check it out on the SmithBot cloud app for the latest information on new features.
To properly train our AI algorithms, we need a certain amount of data. These are only available for digital currencies that were introduced already some time ago. Another criterion for the selection of the supported pairs is the availability at trustworthy exchanges and sufficient liquidity. When these conditions are met for more and more crypto assets in the future, we will gradually add them to our portfolio.
The portfolio of tradable asset pairs is different on every exchange. While we are carefully selecting the exchanges SmithBot supports there are still some restrictions. Additionally, some pairs might be unavailable for residents of certain countries due to local laws and regulations. Please check with your exchange whether the asset pairs you want to trade are available.
You can find the currently supported exchanges on our startpage. We might support more exchanges in the future.
We provide a comprehensive manual for our application in our Getting Started Guide. If you need further assistance, please contact our support.
Our algorithms are trained for optimal returns in the longer-term, such as months or years. That said, it is also sometimes possible to achieve large gains in the short-term. It is not a typical scenario, however.
SmithBot offers a large number of bots for different currency pairs and with different algorithms and training conditions. As rule of thumb, you should distribute your funds over several bots to achieve a more steady average trading performance. The SmithBot cloud application offers a variety of ranking and visualization functions that help you to choose the best bots. You can analyze the performance on different time intervals and with the trading fees that apply at your personal exchange with your account. Criteria for the judgement of a bot can be the performance in different time scales compared to the market, e.g. during periods of rising and falling prices.
We do not ask you to send us your funds! These always remain at the cryptocurrency exchange you trust and we will neither hold nor have access to your funds at any time. That is, provided you follow our recommondation and provide us with your exchange's API-keys that have only the permissions SmithBot needs to trade for you. This does not include the right to withdraw any funds. We don't need it and we don't want you to give us access to your money. Never!
Our revenue comes only from our customer's subscription fees. We are completely independent from any other party. This is important for us so we can focus on serving our paying customers without any conflict of interest.
There are a lot of trading bot providers out there. Some of them are outright scam and advertise with extremely high (and unrealistic) profits to trick you into sending them your money. Among the trustable ones there are two types. The ones that execute a strategy you must provide cannot tell you the profits you would have made upfront (and they don't). The ones that offer predefined strategies sometimes show you their results very selectively, e.g. the one trade signal that coincidentially made a very high profit within the last week. They don't always show you the many others that didn't perform that well. That is why we offer you full transparency and with our free demo account you can check the historic performance of all our bots. Fact is, there are many bots out there and they are difficult to compare, but we are confident that our bots are amongst the best in the market when trading under real conditions.
SmithBot uses proprietary and state-of-the-art AI to provide you the best trading experience: we combine ease-of-use with leading performance. This makes it easy to exploit the advantages of bot-based automatic trading. Don't waste your valuable time and money with studying trading strategies and experimenting until you find a profitable strategy when you can start trading with SmithBot within minutes!
There have been many reports on manipulation at cryptocurrency exchances by malicious traders who drive their profits at the expense of honest traders. This includes volume and order book manipulations, e.g. wash trading or pump-and-dump schemes. SmithBot relies only on market data from reputable exchanges and we avoid training our algorithms on data that is prone to manipulation. Therefore, such kind of manipulation schemes do not affect the performance of SmithBot nor does SmithBot rely on such fraudulent methods to achieve its profits.
As a paying customer, you can subscribe to as many bots as you like. For each bot subscription you need to define an initial order volume and a maximum order limit where the trade engine will cap your orders. The combined trading limit is the amount that cannot be exceeded when summing up the maximum limits of all your subscribed bots.
Only the combined trading limit differs. The higher tier subscription models offer you significantly higher maximal combined order volumes. All the other functionality is the same for all subscription types.
We have to avoid that our bots' trading activity strongly influence the market prices. If many users subscribe to the same bot, our trade engine would trigger orders with large volumes upon a trade signal all at the same time. Due to limited liquidity on exchanges and for some currencies, this could cause abnormal price movements. This would in turn also erode the bot's performance. In order to prevent this, we need to limit the volumes. You can still trade with large volumes by subscribing to many different bots.
When the algorithms behind a trade bot you subscribed to generates a trade signal with a good chance for a profitable trade, SmithBot will place an order at your cryptocurrency exchange. Therefore you have to provide the API keys with the permission to create orders in SmithBot's cloud app. We do not need the permission to withdraw funds from your exchange, so your money stays safe.
First, it requires great efforts to properly implement and test each exchange interface. We want to be confident that you don't suffer issues up to impacts on the profitability of your subscribed bots by applying a high standard of quality control. So we take time to add new exchanges step by step.
Furthermore, we carefully evaluate each supported exchange for its records of security and reliability. We also support only exchanges that offer many of the currency pairs our bots trade with and that have a sufficient liquidity as well as a compatible API.