The Crypto Portfolio Rebalancing Backtest Tool
Update 10/05/2022: New & Improved Shrimpy Backtest Tool Now Live
We are incredibly excited to announce that we have launched a completely overhauled backtest tab for the Shrimpy app! We heard feedback from many of you about wanting an improved experience for running backtests, and we are happy to say that this is now a reality.
The new backtest tab features a slick, responsive user interface, a massive improvement to the overall speed of running backtests, the ability to backtest all currencies and exchanges on Shrimpy, and you can now save your backtests and view your history of tests at any time!
Trading cryptocurrencies has been a hot topic for the last few years. Traders, investors, and portfolio managers alike have taken a fascination with the revolution that’s changing the financial market. However, people are being met with a challenge - it’s still difficult to acquire the necessary data to make educated decisions on how to manage a cryptocurrency portfolio. Historical crypto data can be sparse, the tools to backtest trading strategies are incomplete, and backtest results are thrown into question when individuals make outlandish claims.
After months of research and development, our team released the most powerful backtesting tool which provides valuable market insights for thousands of people around the world. These individuals now have access to precise historical backtests which accurately simulate countless rebalancing strategies.
Our story with backtesting began in mid 2017. Our team built an advanced cryptocurrency trading bot application which had a full backtesting suite built into the service. Our team spent weeks backtesting every strategy we could imagine. That’s when we ran our first backtest for portfolio rebalancing. The results were shocking.
20,000 backtests later we published our first study which compared rebalancing to a portfolio which utilized a simple buy and hold strategy. You can still find these results here.
Data Provider
Before we could get the backtesting tool off the ground, we immediately ran into a critical problem - the historical data we needed to analyze these strategies was not easily accessible. So, we began reaching out to several crypto data service providers to acquire the historical exchange data we needed.
After discussions with multiple different providers, we ultimately decided to use CoinAPI as our primary data partner. Our team has been collecting data from CoinAPI and other sources to construct a comprehensive dataset for our backtest tool. This ensures that our simulations will use actual market data from each exchange to calculate the effects of a rebalancing strategy.
Shrimpy’s Backtest Tool currently incorporates the following components:
Backtest Data Components
Backtesting Tools
In order to provide an experience that is useful for everyone, we’ve developed two different backtesting tools.
Basic Backtest Demo
The Basic Backtest Tool is a simple and effective way to learn about the importance and impact of portfolio rebalancing. Simply select the assets to backtest and see the performance difference between portfolio rebalancing and holding.
Check out the Basic Backtest Demo here:
Shrimpy outperformed holding by 34%!
Premium Backtest Tool
If you like what you see with the Basic Backtest Tool, you can experience the full capabilities of the Premium Backtest Tool by signing up for the Shrimpy application here. This unlocks additional backtesting features which includes:
Threshold Rebalancing
Custom Time Range
Adjustable Trading Fee
Complex Allocation Distributions
Additional Backtest Settings and Options
Upcoming Product Features
The Shrimpy team is constantly building on top of the robust platform we’ve developed so far. New features and product releases will periodically become available to continuously improve the backtesting experience. As more money and investments flows into the cryptocurrency space, institutions need access to more data, so we are making sure we have ways to provide that data.
Improved Exchange Support
The Shrimpy backtesting tool now supports data from 16 different exchanges. These exchanges represent the most promising exchanges in the market. As we continue to integrate data from additional exchanges, we will be able to provide a comprehensive view of the global cryptocurrency markets.
Detailed Configuration
Besides providing a multitude of exchanges, Shrimpy will provide a depth of support for configuring backtests. This allows for completely control over the backtesting process to ensure crypto users receive the insights they are looking for.
Summary
While cryptocurrencies may be a new asset class, fundamental investment philosophies and strategies have not changed. Shrimpy’s mission is to provide a robust set of dedicated tools and services for individuals and institutions looking to structure a simple yet effective portfolio strategy.
Shrimpy is a trading bot and portfolio management application. Linking your exchange account to Shrimpy unlocks convenient trading features which can help you automate your crypto strategy. Try it out today!
Shrimpy’s Universal Crypto Exchange APIs are the only unified APIs for crypto exchanges that are specifically designed for application developers. Collect real-time trade or order book data, manage user exchange accounts, execute trading strategies, and simplify the way you connect to each exchange.
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The Shrimpy Team