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How to Automate Your Cryptocurrency Portfolio with Shrimpy

Shrimpy provides advanced automated trading strategies for all traders, regardless of experience. However, if you are new to crypto trading, you might want to consider expert tools that help you maximize your trades. This way, you can navigate the decentralized world smoothly and with fewer risks.

This short guide shows you how to use Shrimpy’s automation capabilities to improve your portfolio.

What Does “Automate Your Portfolio” Mean?

One of Shrimpy’s primary tools is portfolio automation. It allows users to create countless portfolio allocation types and strategies. In addition, the feature rapidly changes allocation proportions and, depending on market developments, switches to other assets. 

Shrimpy has three requirements for creating and managing portfolios:

  1. First, users can activate only one automation for every portfolio they have at any time.
  2. Shrimpy will not trade for a portfolio that does not have activated automation.
  3. The platform will allocate the active allocation when you tap the “Rebalance Now” button.

Shrimpy will also define the rules for the way that portfolio is automated. It’s also worth mentioning that the platform “blocks” inactive automation. This way, it does not trade them. Users can unlink automation at any time to stop automating.

These rules apply to social trading features as well. For example, if you follow a leader, the platform will automate the portfolio and mirror the target’s trades. However, you can stop the leader from automating your portfolio by unfollowing.

When you click on the “Automation” tab in your portfolio, Shrimpy will ask you whether you would like to rebalance. The platform will instantly diversify your portfolio and provide different allocations if you choose so. Alternatively, you can select to rebalance at a later time. In this case, you will always have the option “Rebalance Now” on your dashboard. Clicking it will execute the trades to allocate the portfolio.

How to Start an Automation on Shrimpy

Shrimpy has made portfolio automation clear and straightforward, even for beginners. Here’s how it works:

  1. Go to your dashboard, pick an asset portfolio and create an automation strategy.
  2. Save the portfolio and choose a name for it.
  3. Select the blue text at the top of the screen that says “Start Automation.” 

The following dialogue box will present you with different portfolios that you can automate with the new strategy. For example, if one of your portfolios has an “SQR Index” label, the platform can replace that automation with the new one. Alternatively, it can select the other portfolio to automate. Lastly, you can choose multiple portfolios to automate with single automation if you wish.

After selecting a portfolio, Shrimpy will decide between rebalancing it after clicking “Start” and waiting until the next scheduled rebalance. The next scheduled rebalance depends on the rebalancing settings you have defined for your automation.

Bear in mind that clicking “Start” will activate the automation for the selected portfolio(s).

What is Rebalancing a Portfolio?

Traders can choose to “rebalance” their portfolio to boost their earnings potential. This practice enables many crypto enthusiasts to reallocate their resources to different assets depending on market conditions.

With Shrimpy, traders must decide how much their portfolio they want to allocate to each asset. These allocations denote the amount of each cryptocurrency they wish to represent in the total value of the combined portfolio. Then, during rebalancing, the platform trades the coins so that the value of each asset is again equal to the specified initial percentages.

Volatility can help traders increase their gains, especially by utilizing “HODLing” strategies. For instance, when a coin experiences a spectacular surge, the rebalance will distribute those gains among the other assets. As a result, even if the coin’s value returns to the original price before the surge, the rebalancing enables the portfolio to net a positive gain over this period.

How to Index the Market with Shrimpy

Shrimpy enables traders to index the crypto market quickly and hassle-free through 4 simple steps:

Step 1

Start by navigating to the “Automation” tab on your dashboard. Here, you may see the portfolios you have created in the past. However, if you do not have a portfolio yet, you can quickly build one by tapping the “Create Automation” button.

The following window will ask you to choose the kind of automation you wish to create. In our case, you will want to select “Create Index.”

Step 2

At this point, you should see the “Automation” page. Here, you will also find information about allocations and strategy. From here on, you are on the path to creating your first market index with Shrimpy.

Step 3

The dashboard provides you with several options at this stage of the process. Here is a quick breakdown of what they represent:

Weighting. Indexes in Shrimpy can either be weighted by market cap or evenly distributed.

Asset. Here, you can choose any range of support you wish to hold and index in your portfolio.

Min %. This option enables you to select the minimum per cent weight for every asset. So, for instance, you can set a minimum of 2% for a purchase if you don’t want it to take up less than 2% of your index.

Max %. Here, you can set the maximum per cent weight for every asset.

Exclude. You can choose the assets you want to exclude from your index with this option. For example, if you don’t wish Tether to be part of it, you can easily take it out.

Step 4

After setting your preferences for every option above, you can save your portfolio. If you fail to click the “Save” button, you will lose all your changes. Lastly, don’t forget to select a rebalance period so Shrimpy can keep your allocations over time.

How to Create a Dollar-Cost Average (DCA) Strategy with Shrimpy

Dollar-Cost Averaging (DCA) is a trading strategy that involves periodically allocating chunks of your capital to assets to negate volatility. Users can distribute their funds as they add them to their exchange account. Contrary to rebalancing, DCA distributes only the funds you deposit. In other words, this strategy only involves the new funds and not the entirety of your portfolio.

Shrimpy enables you to execute a simple DCA strategy, which goes something like this:

  • First, detect a deposit. Then, determine the funds which were deposited.
  • Use ONLY these funds to calculate the trades the platform needs to execute to bring the portfolio as close as possible to the target allocations for this portfolio.
  • Execute trades.

You can employ this strategy to reduce the number of executed trades in the long run. Additionally, it helps maintain a set allocation for assets and manage a diverse portfolio without hassle.

Here’s how to set up your DCA strategy with Shrimpy:

A preliminary step involves linking your exchange API keys. This way, Shrimpy will begin collecting data from your exchange account. Next, you can see all of your asset balances and the current value of your portfolio on your dashboard. From there on, you can follow these simple steps:

Step 1

Navigate to the ” Automation ” tab once your API keys have been linked to Shrimpy, navigate to the “Automation” tab. On this page, you will start by navigating to the “Automation” tab on your dashboard. Here, you may see the portfolios you have created in the past. However, if you do not have a portfolio yet, you can quickly build one by tapping the “Create Automation” button.

Step 2

The following window will ask you to choose the kind of automation you wish to create. In our case, you have to select the “Pick Assets” option, which helps you select the assets you would like to include in our portfolio.

Alternatively, you can quickly distribute assets depending on your current balances in the exchange account. This is possible by choosing the “Allocate from Balances” option. This way, you can see the balance information from the exchange. Next, you can select the per cent allocations for each asset on your exchange account.

Step 3

You must select the assets you want to include in the DCA event in the following dialogue box. The best part about it is that you can always return and add more buys if you forget some.

Step 4

Next, you will need to pick the percentages for each asset. These percentages must add up to 100% of your portfolio. Shrimpy won’t allow you to save your strategy until you have allocated 100% of the portfolio.

Step 5

At this point, you will see a clear image of the assets in your portfolio you have selected for DCA.

Step 6

Enable your DCA by navigating to the “Show More Settings” tab on your dashboard. Expand it to see the advanced options. There, you will find several settings, including DCA, Fee Optimization, and Spread/Slippage controls.

Step 7

Enable the “Dollar Cost Averaging” option by toggling on the slider. Now, your DCA is up and running. Alternatively, you can also enable the “Fee Optimization with Maker Trades” option. This will reduce the fees you incur from trading over time as Shrimpy prioritizes maker trades.

Step 8

Save your DCA strategy by clicking the “SAVE” button. Also, you can name your strategy as you please. Next, you have to select “Start Automation,” which will present you with a pop-up window. Here, you have to choose the portfolio you want to use with DCA. 

You should enable DCA on the “Default Portfolio” if you want Shrimpy to include newly deposited funds into your DCA strategy instantly. However, if you only have one portfolio, the platform will automatically use it for DCA when you deposit new funds to your exchange account.

Final Thoughts

Shrimpy is a robust platform that uses cutting-edge tools to help you manage your portfolio automatically. Its features are easy to use whether you are an expert developer or a newbie trader. Also, all its automation capabilities, including rebalancing, indexing, and DCA, are intuitive and effective in a rapidly changing crypto market.

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