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Factoron – Crypto Algo Trading Bot

Originally Posted on August 25, 2020
Last Update on September 5, 2020
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Business idea: Factoron – Crypto Algo Trading Bot

“Hey Siri, withdraw $500 from my bank account and run a fund for me.” – Why can’t this be done? Well, you can do it with Factoron, a simple mobile app that runs algorithm trading with cryptocurrencies.

Why algo trading? There are many reasons, but here are a few: You don’t need to be online all the time. It automatically executes orders. Also, you don’t need emotion in trading, which is often why beginners lose money. Lastly, you can see why and how orders are executed.

Why cryptocurrencies? You can deposit/withdraw funds and make orders anytime, 24/7/365 – unlike the stock/forex market, there’s no market nor weekend close. You can also build a bot relatively easily because crypto is all software-based unlike fiat currencies.

Factoron users choose a risk level they can tolerate, strategies (technical indicators, etc.), fund size, and other preferences such as cryptocurrency (Bitcoin, Ethereum, etc.) When a condition is met, the app makes a position automatically and gives users a notification. 

Users can also see trading logs on the app to check average split, commission, volatility, etc and customize the parameters / backtest results. Advanced users can see source code and edit it as they wish. Beginners can learn the basics (“what’s moving average?”) and improve their skills.

You can leverage existing infrastructures like Bitmex API and indicator libraries. [1] Currently, companies like TradingView offer similar services but there are two problems. First the brokers are limited, second script (e.g. Pinescript) has limitations like external data import. [2]

Regarding monetization, Factoron could offer something unique by changing users based on the profits users made (free for users with loss) so that it can promote itself as win-win relationships with users. 

[1] https://www.bitmex.com/app/apiOverview

[2] https://www.tradingview.com/brokers/

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