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WHY BOTS FAILFREENO ACCOUNTAUTOMATED TRADE BOTSCryptohopper: HostedBots and BorrowedStrategiesThe arithmetic of how bots failEDUCATION ONLY | NO SIGNALSEXAMPLE NUMBERS ARE LABELLEDAUTOMATED TRADE BOTSautomatedtradebots.com
A free page on cryptohopper: hosted bots and borrowed strategies. Education only, with example numbers labelled.
WHY BOTS FAIL

Cryptohopper: Hosted Bots and Borrowed Strategies

Short answer

As we understand it, Cryptohopper is a hosted service that runs trading bots on the vendor's servers and reaches your exchange through API keys. We have not run it. Most of this page is about the strategy driving a hosted bot, especially one written by somebody else.

No verdict here, because the product was not run. The page separates the service that hosts a bot from the strategy that drives it, and shows how a flattering window can sit inside an ordinary year.

You get a two-layer way of thinking about a hosted bot, what running on someone else's server changes, a made-up year read three ways, and questions to put to any published strategy.

  • Two layers: the host and the strategy
  • What a vendor-side server changes
  • A made-up year read three ways
  • Questions for any published strategy

Last updated 9 November 2026. Education only, not advice.

Free, no account Runs in your browser Worked numbers shown Not advice Examples labelled

Ready to go further

Next: look at a record the hard way

Read how survivorship bias makes a list of shown results look better than the typical one, then ask of any strategy how the whole history looks.

Reading time5 minutes
Worked exampleExact arithmetic
Tools linked0 on this page
Last updated9 Nov 2026

What is included

  • What it is, in plain words
  • The formula or mechanism, with exact arithmetic
  • How it hits grid, martingale and DCA bots
  • A check you can run before you switch a bot on

Who it is for

  • People who run or plan to run a trading bot
  • Anyone reading a backtest or a bot sales page
  • Readers who want the numbers, not the pitch
  • Not advice, and not a signal service
One made-up strategy, three ways to read the same year+18.1%Window shownMay to Aug+1.3%Whole yearJan to Dec-10.7%Joined afterSep to DecBar height is the size of the move, the label gives its sign. Invented monthly returns, not any strategy on any service. Calculated by uson 3 Nov 2026.
One invented year of returns, read as a flattering window, as the whole year, and as the stretch after the window closed.

Key facts

  • Cryptohopper was not run for this page and nothing here recommends it. The page describes how hosted bot services work in general. Read the vendor's current terms before relying on any of it.
  • Crypto-assets can be financial products.
  • As we understand it, Cryptohopper is a hosted service that runs trading bots for you and connects to crypto exchanges through API keys. The bot runs on the vendor's servers, so it can keep going when your own computer is off.
  • Two layers carry risk: the service that hosts the bot, and the strategy that tells it what to do. Some services of this kind let other people publish strategies, which adds a second author to check.
  • In the made-up year below, a four-month window reads +18.1%, the whole year +1.3%, and the four months after the window -10.7% (calculated by us on 3 Nov 2026, exact).
  • Prices, plans, features, results and ratings are left out, because we have not checked them.

Two layers to check: the host and the strategy

A hosted bot has two parts that are easy to run together in your head. The first is the service, which keeps the bot alive and sends its orders. The second is the strategy, the set of rules that decides what to buy and sell. As we understand it, Cryptohopper provides the first. Services of this kind usually let you set up a bot from settings, templates or strategies, and some let other people publish strategies as well. That is where the second layer can belong to a stranger.

The host (the service)The strategy (the rules)
What it isThe machinery that runs the bot and talks to your exchange.The rules that choose each order: entries, exits, sizes, stops.
Who wrote itThe vendor.You, the vendor, or another user who published it.
Typical failureAn outage, a bug, a breach, a key held somewhere you cannot see.Rules that fit the past, a risky size setting, a record that shows only good stretches.
What you can checkKey permissions, stated terms, exchange statements against its figures.Rules you can read, the method behind its record, how it behaved in bad months.

What running on someone else's server changes

  • It keeps working when you are away. That is the point of a hosted bot, and also the risk. Nobody is watching it either, unless you set an alert or look.
  • The key lives with a third party. You keep the funds at the exchange and give the service a key that lets it place orders. If the service is compromised, the keys it holds are at risk, which is why a key should be limited to trading and, where offered, to listed IP addresses.
  • You depend on the host staying up. If it pauses or fails, find out beforehand what state your open orders are left in.
  • Your own computer stops being a point of failure for the bot, and the vendor's servers become one. That moves the risk rather than removing it.

Worked example: the window you see against the year that happened

All of this is made up. A strategy, published on a hypothetical service, made these monthly returns over a year. A listing page shows a four-month stretch, May to August, and nothing about the other eight. Nobody lied. A listing has to show some window, and a recent one that looks good is an easy choice.

MonthReturnValue at month end (start 100)In the listing window?
Jan+1.0%101.0No
Feb-2.5%98.5No
Mar+0.5%99.0No
Apr-3.0%96.0No
May+4.0%99.8Yes
Jun+5.0%104.8Yes
Jul+3.5%108.5Yes
Aug+4.5%113.4Yes
Sep-4.0%108.8No
Oct-6.0%102.3No
Nov-2.0%100.3No
Dec+1.0%101.3No

Read the same twelve months three ways. The window a listing might show gives +18.1%. The whole year gives +1.3%. And the four months after the window, which is what a person who joined on the strength of the listing would actually have lived through, give -10.7%.

The made-up strategy through the year, starting at 10095100105110115StartAprAugDecStart: 100window opens 96.0window closes 113.4101.3Months through the yearInvented returns. Someone who looked only between the two orange points saw a rise of 18.1 percent. Calculated by us on 3 Nov 2026.
One curve, three stories. The record is the same each time; only the part you are allowed to see changes.

Calculated by us on 3 Nov 2026, exact. A published result is a record of the past, and the past it shows is the part somebody chose. None of this says anything about any real strategy. It shows why a result needs the whole history, the method that produced it and the dates it covers, before it means anything. The survivorship bias guide explains the wider version of the same trap, and overfitting explains why a strategy tuned to a good stretch can fail the next one.

Questions to put to a published strategy

  1. Who is responsible when it fails? Find out what the terms say about a strategy written by another user.
  2. Can you read the rules? If you cannot see them, you cannot know what you are following.
  3. How was the record made? Live as it happened, or built afterwards from past data, and whether costs are in it.
  4. How long is it? Does it cover a bad stretch, or only the weeks since it was written or listed?
  5. Has the strategy changed? A record can be several versions joined together, and the one you are copying may not have produced it.
  6. Can you inspect a trade afterwards? If you cannot trace an order back to a rule, you cannot learn from it.

Run the test somewhere that cannot hurt much

A hosted bot gets its prices and sends its orders through the exchange, so the cleanest first test is a paper mode, if the service has one. If it does not, open a separate exchange account or sub-account that holds only the test amount, and put the key on that account alone. Whatever happens, the loss is then the test amount and no more. See the crypto trading bot guide for the general ways a crypto bot fails.

What we have not claimed

This page takes no position on whether Cryptohopper works or how safe it is, and it sets no other service beside it. The year of returns is invented. Crypto-assets and leveraged products can lose all the money put into them, and past or simulated results are not a guide to future results.

FAQ

Frequently Asked Questions

What is Cryptohopper?

As we understand it, a hosted service that runs trading bots on the vendor's servers and connects to crypto exchanges through API keys. We have not run it, so the vendor's current pages are the place for what it offers.

What does hosted mean for a trading bot?

The bot runs on the vendor's computers instead of yours, so it keeps going when your machine is off. The cost is that your key sits with a third party and you depend on that party staying up.

Why does the strategy need separate checking?

Because the host and the rules are two different things. A well-run service can still run a poor strategy, and a good-looking record can belong to rules you are not allowed to see.

Why can a published record mislead without anyone lying?

Any record covers some window. If the window shown is a good stretch, the record looks better than the whole history. The example on this page reads one invented year as +18.1%, +1.3% or -10.7% depending on the months chosen.

How should I test a hosted bot cheaply?

Use a paper mode if there is one. Otherwise use a separate exchange account holding only the test amount, with a key limited to trading on that account.

Are the numbers on this page real?

Example numbers are made up to show how the maths works, and the page says so. A figure only counts as exact when the page says it was calculated on a stated date. Nothing you enter in a calculator leaves your browser.

Can I use this to decide whether to run a bot?

It can show whether a bot's numbers hold together and how much an account can lose. It cannot say what the market will do, and it is not advice. Use it to ask better questions, then read the terms of your own broker or exchange.

Is this financial advice?

No. It is general education with an invented year of returns. We have not run Cryptohopper, and the page does not suggest using it or any other service.

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