Are looking for a comprehensive and in-depth comparison between Gekko and Zenbot?
Then you have landed on the right page, in this Gekko vs Zenbot post, we will cover both the bots in detail and give an in-depth comparison with respect to every feature they offer. You will also find a comparison table and a brief overview of trading bots in the end. So, let’s get started.
Gekko: Simple and efficient
- Backtesting: This allows a user to test how well his strategies would have performed in the past, whether your strategy would have led you to actually making profit of it and helps you devise a stronger trading strategy
- Paper Trading: The user is provided with fake money and phantom trades to help them iron out their trading strategies against the live market scenarios, without having to actually invest and bear losses. One can place these bets, and check if their strategy is well suited to the current market scenarios. This helps in the refinement of investment decisions.
- Integration with the user: Gekko performs trading on your behalf without sharing your portfolio or trading strategies with anyone. Also offers a host of various plug-ins for notification services, graphical analysis etc
Zenbot: A platform for High Volume Trading
Zenbot is one of the few crypto-trading bots which offers multiple currency support, thus creating a niche for itself. It runs using Node.js and MongoDB. It currently offers trading exchanges over 9 platforms, while planning to expand to other platforms in the future. It offers high-frequency trading options with extensive backtesting.
Zenbot also provides the option for backtesting and paper trading, however recent user have reported glitchy behavior during paper trading and actual trades.
The Zenbot solution is currently under development and in the third iteration of its release. According to the information available on the GitHub page for Zenbot 3, the latest version Zenbot 3.5.15 is capable of delivering a 1.531 times return on investment within a period of three months, a highly impressive figure for an open source automated trading solution. It can perform over 50 transactions in a day, which is commendable.
Gekko vs Zenbot: Technical Comparison
Gekko and Zenbot, both provide users with a plethora of functions to choose from. However, comparing them we find that Gekko is a low-frequency trading bot which may limit one’s profit-making capabilities. Zenbot is under severe criticism as there have been discrepancies in the results using paper trade and live trade, under the same circumstances.
Live trade has been showing losses while the same trade carried out using paper trade was shown to be making a profit. The developers of Zenbot have advised people against investing a large sum of money.
2)Updates and Security
Gekko has a number of plugins which allow users to be updated regardless of the level of connectivity. Zenbot has been unable to roll out updates on a consistent basis and is replete with criticism regarding glitches in trading. The issue is yet to be addressed, and updates have been rolled out very slowly for enhancement in security features as well.
3) Exchange Platforms
Gekko supports over 14 exchanges while Zenbot currently offers only 9 exchanges. A few exchanges include Bitfinex, Bitstamp and Poloniex.
4) Operating Systems
Gekko offers seamless functioning on Windows, macOS, Linux, it also offers services like running on cloud and Raspberry Pi. Zenbot also offers user an option to download and run for Windows, Linux and macOS.
Gekko offers an easy to use interface however it has limited functionalities for advanced features. It also offers only low-frequency trading making only around a couple of trades per week, which is relatively low and fails to cash on the market. It cannot be used for arbitrage capitalization, it also fails to incorporate media reports during trading.
Zenbot is a powerful software which allows to perform around two transactions per day with one-hour frequency, and 15 to 50 trades per day with a frequency of 5 minutes.
It also offers multiple asset support and advanced functionalities like multiple currency support.
6) Help and Support
Gekko has a dedicated chat forum on its website for all issues related to development, using Gekko, automatic trading and exchanges. It also has a discord for connecting to a realtime chat regarding any issues
Zenbot has an active community on Reddit for exchange of ideas and helping address issues related to installation, usage and development.
Gekko vs Zenbot Comparison Table
|Open Source Status||Free and Open Source||Free and Open Source|
|Operating System||Windows, macOS and Linux, Raspberry Pi||Windows, macOS and Linux|
|Exchanges||14, includes Bitfinex, Bitstamp, Poloniex||9, includes GDAX, Bitfinex, Bitstamp, Poloniex,Kraken|
|Trade Frequency||Low, Around 1-2 per day||High, can perform up to 50 trades per day at a frequency of 5 minutes|
|Updates||Plugin based updates available across all platforms, regular updates||Low frequency of updates|
|Multiple Currency Support||No||Yes|
|Help and Support||Forum and Live chat support||Chat forum on Reddit|
Cryptocurrency Trading Bots: An overview
Market Volatility and the Role of Trading Bots
Cryptocurrency took the world by storm, particularly after changing the fortunes of the investors, by providing a ten thousand-fold return on their investments within a span of less than five years. The fluctuations have been so varying, that trading these cryptocurrencies would still be a profitable venture for new investors.
However, it is humanly impossible to keep a constant track of the market scenarios and make continuous logical investment decisions for churning out constant profit. Since, the last two years, holding on to the currency is also a very risky bet as the value has been constantly moving in a downstream trend. The prices have gone down from being $19000+ in December 2017 to being $3700+ as of November 2018.
The fluctuations are quite unpredictable and taking a calculated decision at the spur of the moment led to the development of trading bots. These bots are open source software packages which constantly track the market trend, and help you manage your investment portfolio by placing buy or sell orders, automatically, against a set of pre-programmed rules.
The decision making is triggered by monitoring the price movement and reacting to a set of parameters like market volume, orders, price and other parameters depending upon your preferences.
Open Source Trading Bots vs Paid Trading Bots
When it comes to trading bots, the internet is replete with such software packages. However, they come in various forms. If you’re planning to customise the trading platform as per your investment strategies, then open source platforms may well be your cup of tea.
For beginners, who are not really aware about trading strategies, paid trading bots offer comprehensive guides and built-in strategies to help you delve in the field of cryptocurrency.
Paid trading bots usually try to offer value for money, by providing an easy to use yet complex solutions and offer tangible services for the money that you spent on buying the software. Paid trading bots like Tradewave offer users to exchange trading strategies while Margin.de includes video tutorials, a full fledged FAQ section and complete transparency regarding the company profile, owners and team members.
Gunbot offers a lifelong license. In exchange for a one-time fee, they offer software upgradation for life at no extra cost. BTC Robot is covered by a 60 day 100% money back guarantee. Although, these options may seem lucrative, but the real parameter is the Return on Investment generated from these bots. Paid trading bots may fail to deliver and adjust to changing circumstances immediately.
Open Source software provide you the creative freedom to customise the software as per your own requirement. You can build and develop strategies on your own and maximize the return on investment.
An analogical comparison between paid trading bots and open source trading would be the comparison between buying a sports which promises to deliver the desired speed, or getting the parts delivered for making a sports car, which you can desire to achieve the speed that you want.
This is why, a lot of users around the world have started to prefer open source trading bots.
Choosing the Right Bot
Although a correctly specified bot may work wonders by executing trading actions faster and in a more efficient manner than what a human would do manually, it has also been debatable whether using trading bots will actually yield results or not.
Many trading bots use a statistical tool known as an exponential moving average (EMA). This helps the bot to fix a starting point for analyzing the market scenario. Using EMA allows the bot to track market prices over a set time period. The bots are then programmed to react to the market prices, they may take certain actions like moving beyond the thresholds.
The bot can then be programmed such that the traders can set their thresholds as per their preferences depending upon the kind of risk they’re willing to take during investment. However, one of the downsides of EMA is that it is based on a weight based system which incorporates past history and assigns the highest weight to the most recent transactions.
This strategy may yield results in normal market scenarios but in the cryptocurrency industry, volatility is the part and parcel of the game. Past performances may turn out to be very contradictory to the future scenarios. Hence, using such method may not always be the best for assessing the future trends as past performances are not a clear indicator of future decline or growth, especially in the cryptocurrency market.
The question that “Do trading bots work?”opens up a multifaceted argument wherein results have greatly varied. It simply can be ascertained that they work, but not necessarily for everyone. Trading bots, however have an upper hand, when it comes to manual trading, it constantly interacts with the market and eliminates one of the substantial factors that affects humans, it is not emotionally carried away during trading.
Its actions are backed by strong mathematical reasoning. However, on the other hand, by using the wrong trading strategy or relying on the trading strategy of others, a trading bot could simply end up automating a set of poor market trading decisions.
Since, these bots are basically open source software, it should be evaluated on a number of technical parameters like flexibility, availability across platforms, security features and so on. This article attempts to help you evaluate the right bot for you by comparison of two of the most popularly used cryptocurrency bots : Gekko and Zenbot. A thorough understanding of the evaluation parameters is the quintessence to choosing the bot which may eventually help your foray in the world of automatic trading in the cryptocurrency market.
Cryptocurrency trading is marked with high levels of risk and market volatilities. One should start investing using bots after thorough understanding and evaluation of variabilities. If you’re a beginner looking for safer options to begin with and learn the tricks of the trade, Gekko is the platform for you.
It is regularly updated, easy to deploy and use. However, its profit making capabilities are limited by low trade frequency and inability to exploit arbitrage opportunities. Its functionalities are also limited as compared to other trading bots available for users.
Zenbot is recommended for people with rich experience in the cryptocurrency trading area. Although enriched with tools for higher level of functionality, technical glitches can result in huge losses. It allows you to work with multiple currency and perform very high frequency trades, however the developers have warned against trading huge amount of money using Zenboat.
Trading bots depend highly on the pre-programmed data that is encoded by the user in the software platforms, hence it is always advised to understand your investment capabilities and experiences before choosing a bot. Both trading bots can prove to be very beneficial or a complete disaster depending upon your ability to understand investments.