Shrimpy, a crypto portfolio management platform, teamed up with CoinAPI. Together, they created a high-precision backtesting tool. This partnership greatly improved the accuracy of portfolio strategy analysis for institutional clients.
Enhancing crypto portfolio management
Shrimpy aimed to build the best portfolio management backtest tool for crypto institutions. They knew that poor data could lead to bad decisions and financial losses. To solve this, the company expanded its backtesting infrastructure. They did this by integrating CoinAPI’s data APIs. As a result, Shrimpy’s backtesting tools gained better precision, more complete datasets, and wider exchange coverage.
Pioneering automated crypto portfolio management with Shrimpy
Shrimpy is an app for crypto traders who want to automate their strategies. With Shrimpy, users can do several things. First, they can manage their exchange accounts. Second, they can create crypto indexes. Lastly, they can automate their strategy from one dashboard.
The Challenge: precision in crypto portfolio backtesting
Institutional-grade backtesting tools need precise historical data. This data must be exchange-specific to provide accurate performance values. It should include best bid and ask rates, available asset amounts, and next-best prices. Moreover, frequent data collection is crucial. This allows for trade events similar to actual algorithm implementation.
However, many trading apps still use basic OHLCV data for backtests. This leads to unreliable results. Such backtests don’t account for bid/ask spread, slippage, or exchange-specific behaviors. Consequently, institutions might make poor decisions and lose money.
Therefore, Shrimpy wanted to use high-quality exchange data. This would help their backtesting tools match real-world trading behaviors. With precise data, Shrimpy could give institutions the accuracy they needed. In turn, institutions could confidently use the results to boost long-term returns.
CoinAPI’s solution
Shrimpy wanted a backtesting tool that closely mimicked real-world results. To achieve this, they needed a data provider with extensive exchange and order book data. They also needed flexible data acquisition options. CoinAPI met these requirements.
Using CoinAPI’s top-notch data platform, Shrimpy collected specific order book data through Rest APIs. This flexibility allowed them to easily gather data from various exchanges, trading pairs, and time frames.
As a result, Shrimpy launched the most accurate free backtesting tool in the crypto industry. Their tool offers better precision and accuracy than others. Additionally, it covers all supported exchanges, provides a longer data history, and offers more market depth.
Results
By utilizing CoinAPI’s Rest APIs, Shrimpy greatly improved its backtest tool. Subsequently, this new tool allowed the team to conduct thorough research on crypto portfolio rebalancing. Their findings then confirmed the long-term benefits of rebalancing diverse portfolios. Moreover, it boosted product awareness and increased revenue through a new paid backtesting feature.
In conclusion, the accurate exchange data significantly enhanced the backtesting tool’s impact. It also improved Shrimpy’s reach in the institutional crypto market. Thanks to easy integration, they implemented the service in days instead of weeks or months. For a startup, saving time is crucial. Ultimately, CoinAPI provided a way to implement a robust solution quickly and efficiently.
