Cryptocurrency is currently one of the hottest forms of digital asset. Nowadays, more people are buying, selling, and trading these kinds of digital currencies. Cryptocurrency has a high volatility and price change, because of that, savvy traders can make a lot of money buying and selling at the right time.
However, not all traders are able to execute their strategy due to the emotional stress of trading and holding on to losses. Because of that, a lot of traders now use trading bots to execute their trading strategies while they watch and relax on a sunny beach down south.
Using trading bots enable traders to eliminate the emotional aspect and run their trades purely by logic alone. This enables them to stomach higher risks and execute pin-point strategies without succumbing to fear or greed that’s prevalent in the market.
Because of that, lots of firms over the years have developed trading bot softwares to help traders overcome their emotion with cold hard logic. In this article, we will discuss one of the leading trading bot software developers, Stacked Invest.
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What is Stacked InvestInvest?
Before delving deeper into Stacked Invest trading bots, it’s a good idea to understand what exactly Stacked Invest is. Basically, Stacked Invest is a trading platform that enables users to invest in crypto indices similar to index investing, utilize trading bots to automate trades, and generally automate their portfolio management.
This is one of the only platforms on the market that provide pre-built crypto index to help traders structure their portfolio. Index investing is very interesting because it allows you to ride the ups and downs of the general crypto market, without the risks associated with holding a single coin.
You can connect Stacked Invest with your existing exchange account and immediately access their crypto-index feature and other trading bot features with just a few clicks.
Stacked Invest also allows you to subscribe to crypto trading bots made by other traders. You can pick top traders and bots with proven records and copy them with just a few clicks. All of the bots available at Stacked Invest have real, detailed, and accurate performance history complete with their back test results.
Stacked Invest Features
Now that you know what Stacked Invest is and gotten a glimpse of what they can offer, we’ll delve deeper into the features and offering of Stacked Invest. In general, they have 2 stand out features that we will discuss in this article which are their excellent trading bots and their index investing features.
Stacked Invest Trading Bots
Crypto trading bots are software that runs automated trading strategies built by the user or use pre-built ones. Stacked Invest allows you to access trading bots created by other successful traders for a fee. Each bot creator sets their own subscription price, usually around $90 to $200 and you can choose to subscribe to their bot or not.
To access the bot marketplace, or strategy marketplace in their terms, you need to create a free account on Stacked Invest and click on the marketplace.
After that you’ll see all of the available bot types (scalping, trend, swing, etc) along with their performance statement. To get a better picture, you can even change the period to see monthly or quarterly performance.
If you’re interested in a bot, you can click on it to read more about it. You’ll also be able to see the historical trend and performance for the bot. We decided to click on the Bedrock Trend Bot and see the reports
Every bot has built in risk management features. When you connect your Stacked Invest account with your exchange account, you’ll also be able to manually configure your risk management strategies and parameters such as when to automatically trigger stop-loss during bearish markets.
However, if you want the best results, you need to rigorously test your risk management strategies by yourself. If you can’t be bothered to do that, it’s better to leave it to the default settings or follow the bot creator recommendations.
You can see the risk management aspects in the investment screen above. You can change the percentage of equity you want to trade, the leverage, the price range, stop loss, take profit settings, and even implement trailing TP to ensure you’re not caught unaware by any sudden drop in value.
Once you’ve subscribed to the bot and configured the settings, the bot will now begin to activate. You can configure the bot to give you a trading signal or automate the trading process entirely. If you want full automation, it’s better to automate the trading process. However, if you still want to have the final say, it’s better to set it to signal only.
At the end of the day when choosing which bots to follow and subscribe to, you need to carefully consider the strategy they are executing and the profitability of the bot, shown by the backtesting results.
Having a highly profitable bot running strategies that you don’t believe in will cause you to quit at the first sign of trouble. However, having a bot that runs your preferred strategy unprofitably is also unwise for your balance. Because of that you need to strike the right balance between profitability and compatibility with your trading strategy/philosophy.
Crypto Index Investing Using Stacked Invest
Indexes are a collection of cryptocurrencies designed by experts or experienced analysts that gives you a diversified exposure to the whole cryptocurrency spectrum. It will also rebalance your assets automatically if one token drops too low or rises too high.
Crypto index investing is basically the same as regular index investing, it allows you to create a balanced portfolio that will go up or down, depending on the market. Stacked Invest offers multiple cryptocurrency index investment funds that you can pick.
To get started, all you need to do is connect your exchange account to Stacked Invest and you can instantly invest your cryptocurrencies into the available index funds.
Before choosing an index, you need to ensure that it’s the right choice. Similar to a trading bot, you need to make sure that the index is inline with your investing strategy and also inline with your performance expectations.
Once you’ve selected an index, you can customize it’s composition to tailor it to your needs and wants or simply keep its default setting.
The automatic rebalancing feature helps maintain the composition of the index. You can modify how often the index rebalances itself according to your strategy.
Currently, Stacked Invest 12 different indexes that you can choose from. Here is a general breakdown of each index that we’ve tried
- NFT11: The NFT 11 is an equal weighted index of the most popular NFT protocol tokens on Binance. If you think that NFT is going to appreciate a lot in value, getting the NFT11 is a good idea because you’ll be exposed to nearly all NFT protocol tokens
- CB12: This index is named after the popular Coinbase Index and tracks the overall performance of all digital assets listed on coinbase and weighted by their market capitalization
- Creekwise10: This index is named after the Digital Asset Index Fund (DAI) managed by Bitwise Asset Management. Because of that, the performance should closely mirror Bitwise’s DAI
- Crypto10: This index consists of 10 cryptocurrency tokens with the largest market cap. This is equivalent to the 10 largest companies in the S&P 500, you’ll get exposure to the largest and most well known crypto tokens on the market.
- Crypto20: This is basically the same compared to Crypto10 but it accommodates 20 coins with the largest market capitalization. Get this if you want a broader exposure but still prefer the coins to be well known and widely used.
Here is a breakdown of all the other indexes that are available on Stacked Invest but we haven’t tried yet. We will update the review as we test and use more of the index investing feature in Stacked Invest invest.
- BlueChip DeFi
- BG6
- CB12
- F5 Crypto 12
- Gray Digital 5
- Protos Trend Index
- Market Weighted DeFi 12
Clicking on any index will reveal more information including the option to configure and customize the index to your liking.
However, there is one weakness in the Stacked Invest index investing feature. Currently, it only supports Binance. However, we’ve heard plans to expand the offering in the future, if feasible and if requested..
Exchanges Supported by Stacked Invest
Stacked Invest is integrated and supports most large exchanges. You’ll most likely be able to use your current exchange (or just any of the other large ones easily) with Stacked Invest. It’s also very easy to integrate in just a few clicks.
Here is a list of large exchanges that are supported and integrated with Stacked Invest
- Bybit
- FTX
- Binance
- Bitmex
- Coinbase
- Okex
They are also likely to include more exchanges, especially regional exchanges as they progress and expand their customer base.
Is Stacked Invest Easy to Use?
Stacked claims that their main goal was to make crypto trading hassle free and uncomplicated enough that anyone can trade, even people with no experience. That’s why it has pre-made indexes and some of the most user-friendly bots available.
Stacked also has a very intuitive UI and dashboard design that will let you spot and use key features quickly. Here is a quick snapshot of the main dashboard that you’ll see after you open Stacked
As you can see, it’s really easy to spot all of the features (indexes, bot marketplace, exchange setup, settings). Besides being easy to use, the UI is also easy on the eyes so you won’t get tired looking at it.
All in all, we can say that Stacked is really easy to use, even for beginners. Because of that, if you’re a beginner looking to get their feet wet in crypto, we recommend using Stacked invest.
Is Stacked Invest Safe?
Stacked Invest is basically a SAAS (Software as a service) provider, because of that, your funds will stay in your exchange account. You won’t have to worry about Stacked Invest squirreling away your funds because they don’t interact with it.
However, to be on the safe side, you should always enable 2 factor authentication (2FA) on your Stacked Invest account and your exchange account. This will help deter malicious hackers and prevent unwanted losses due to unforeseen circumstances.
In a nutshell, we think that Stacked Invest is a pretty safe trading bots provider that will give you peace of mind.
Stacked Invest Pricing Scheme
Access to the Stacked Invest platform is completely free, this includes their index investing and auto rebalancing feature. However, the cost of bot trading strategies differ wildly, depending on the price set by the individuals offering them.
Even if you don’t want to buy the trading strategies, we think that this is a great opportunity to diversify your investments by using an index investing tool for cryptocurrencies. As we know, crypto will continue to increase in price for the foreseeable future. Because of that, this is a great time to enter the market.
Recently, there is a new feature called Stacked Premium that you can join at a monthly rate of US$ 8,25 (currently free for a limited time). It boasts extra features such as auto compounding, premium stacks, and recommendations for stacks/lending/staking.
Stacked claims that these quality of life features will enhance the experience (and returns!) of more sophisticated traders that’s dissatisfied with the inflexibility of the basic stacked offering. However, we think that the basic offering is still pretty good and pretty flexible, we recommend you try it first before delving headlong into the premium pricing scheme.
Customer Support
Stacked Invest offers a live chat tool on their website. This connects you to the platform’s support team that can answer your questions. The live chat feature is available during workdays from monday to friday.
If the live chat isn’t able to solve your problem, you can also jump to social media to contact them. Stacked Invest employees are quite active on twitter so you can go ask your questions there.
If you’re more of a DIY kind of guy, an FAQ section is included in the platform website. It covers common questions and more technical ones related to Stacked Invest platform and crypto trading in general.
Final Thoughts and Conclusion
Stacked invest is a platform that allows you to buy great trading bots from experienced traders and delve into crypto index investing for free. It’s also pretty safe and has a robust customer support system. Because of that, if you’re looking for an automated trading bot provider, stacked invest is a great choice.
If you simply want to choose the freebie option which is the index investing feature, then Stacked Invest is also a good choice. They provide multiple indexes that are well built and proven to help you net good returns from the crypto market fluctuation.
However, the bot options in Stacked invest, although expansive, are lacking in type. All of them are a variation of the grid bot trading bots with differing strategies and risk parameters.
If you want to use more advanced strategies such as Spot-Futures arbitrage, an automatic rebalancing bot (like an index, but more sophisticated because you can fine tune it), or any other type of bot, Stacked is not for you.
Pionex on the other hand supports these forms of advanced bots, we have the spot futures arbitrage bot and a dollar cost average bot. These allow you to implement more advanced and sophisticated trading strategies that regular grid bots simply can’t accommodate.
