Navigating the Risks of Algorithmic Trading: How UpBots.com and SuperBots Finance Are Pioneering Next-Generation Solutions

As a seasoned investor with over two decades of experience in the financial markets, I must say that the approach taken by this platform strikes a commendable balance between user safety and intellectual property rights. The transparency and helpfulness exhibited towards their community are truly refreshing, making it an ideal destination for those considering algorithmic trading.


The rise of algorithmic trading has transformed the financial landscape, yet it comes with significant risks that can deter potential investors. Concerns about technological glitches, data inaccuracies, and regulatory compliance create a climate of distrust. These risks can lead to substantial financial losses due to the speed at which most algorithmic trading takes place. The infamous example of Knight Capital, which lost $440 million in a 45-minute period due to a faulty algorithm. This makes it crucial for traders to understand better the implications of relying on automated systems. 

At UpBots.com, our goal is to alleviate concerns by offering a safe and reliable platform focused on centralized exchange (CEX) trading algorithms. We provide sophisticated trading bots specifically designed to reduce risks, directly tackling the apprehension associated with algorithmic trading. One of UpBots’ key features is the use of APIs without withdrawal permissions, safeguarding user assets. Our dedication to security, coupled with educational materials, equips users to trade with assurance.

The latest developments showcase a new offering from UpBots called SuperBots, which integrates their advanced trading system into the Decentralized Finance (DeFi) sector. This empowers users to design and automate their trading strategies in a unique, decentralized exchange (DEX) setting while retaining complete ownership of their assets. By promoting openness and safety, UpBots is redefining the automated trading discourse, bridging industry hurdles with its advanced solutions for the future.

Welcome to our conversation with CEO of UpBots Marco Lavanna

1. Why do you have two different platforms and how are they different?

Sure thing! In simpler terms, UpBots and SuperBots are comparable services aimed at helping retail investors access top-tier algorithmic trading strategies. These platforms bring together experienced traders/quants with individual investors, mirroring the current trend in traditional stock markets where algorithms play a significant role. We believe that cryptocurrencies will follow this pattern, and we want to make sure that retail investors have an opportunity to participate in this growing landscape. After all, one of the core principles of crypto is to democratize finance and give everyone equal access to financial opportunities.

The difference between UpBots and SuperBots is fundamentally whether you as a user want to trade on centralised exchanges like Binance, Huboi, OKX, Coinbase Pro, etc, OR if you would rather trade in a non custodial way on DEX like PancakeSwap, 1inch etc. 

As a crypto investor, I’ve come to appreciate the unique offerings of both UpBots and SuperBots. While UpBots provides me with convenient features like portfolio tracking and social copy trading, SuperBots has been designed in a way that resonates strongly with yield farmers like myself, thanks to its vault system.

2. What specific measures do you have in place to prevent technological glitches and ensure the accuracy of data used by your trading bots?

On both our systems, we employ audited smart contracts whenever necessary, along with state-of-the-art technology that has received substantial investments totaling millions of dollars during the past six years for its advancement. Regarding technical issues, our updates undergo rigorous testing by our beta testers and community, ensuring they are ready for use. Our trading engine is now seasoned and has been demonstrated to be reliable.

Moreover, all algorithms running on our platforms are designed for low-frequency trading, using extended timeframes. These algorithms also specialize in trading a single crypto asset against USDC. In the event that a position isn’t opened or is delayed slightly, it means the potential profit may be reduced slightly.

However this raises a good point that people may not realise – we don’t own/build algos ourselves. We’re not an algo company, we’re a FINTECH/software company. 

We’ve created a space where external algorithm developers can significantly benefit by assisting individual investors/traders. This setup offers a mutually beneficial situation: if our users aren’t earning profits, neither is our platform, nor the Master Trader who developed the algorithm. This ensures that there’s financial motivation for everyone involved at every level of our platform. When algorithms are submitted to us, they undergo thorough testing and safety checks before being made available on our Algorithm marketplace.

3. How do you address the potential risks of regulatory compliance issues that may arise from automated trading?

In our organization, Monetum serves as our umbrella company and boasts a team dedicated to legal, regulatory, and compliance matters. The majority of the companies under our group fall under regulatory oversight. We regard regulations as essential, though often challenging, requirements, and strive to adhere strictly to the guidelines they set forth.

4. Can you provide concrete evidence of the profitability and risk-adjusted returns of your algorithmic trading strategies, particularly with SuperBots?

Absolutely! SuperBots operates entirely on the blockchain, ensuring complete transparency. Every transaction, including deposits, buys, and sells executed by algorithms within its vault, is visible to everyone. We offer an intuitive user interface to facilitate this process for each vault as well as the platform. However, if anyone wishes to verify its legitimacy, they can easily do so by examining the transactions on BSCScan.

5. How do you ensure that your trading bots are not susceptible to manipulation or exploitation by bad actors in the decentralized finance space?

Initially, I’d like to clarify that we cannot manipulate the algorithmic bots. They are designed with a specific set of rules, using technical indicators, which our safety team examines thoroughly to ensure user funds remain secure. After this initial setup, an algorithm developer can only modify the logic or rule-set of their algo. This modification undergoes another round of rigorous testing by our safety team before it can be implemented.

Absolutely, financial markets can be influenced by “whales” or large-scale investors, and all participants must deal with these impacts. However, using algorithms (algo) in the crypto market can offer some advantages. For instance, when the broader market is being manipulated by whale activities, algorithms are often faster at detecting and responding to this manipulation because they continuously monitor numerous indicators, sometimes even thousands.

6. What happens if there is a system failure or outage on your platform during critical market events?

Despite our robust cloud structure designed to minimize chances, it’s important to note that technical systems can still encounter failures, however unlikely. For our services like SuperBots and UpBots, we’ve identified potential points of failure and implemented redundancy measures wherever feasible to ensure minimal disruptions.

7. How transparent are you about the underlying algorithms and decision-making processes used by your trading bots?

Instead of creating our own algorithms, we primarily offer a framework or base structure, known as a bot chassis, for developers to integrate their own custom algorithms.

Our proprietary algorithm coding, incorporating machine learning and logic, is confidential information we don’t disclose publicly. It’s a part of the Non-Disclosure Agreement (NDA) that our algorithm development partners agree to when they join us. Maintaining this confidentiality is crucial for us to evaluate the quality of the algorithms and ensure the safety of our users.

Regarding brand-new algorithms, we provide backtest results to users for evaluating their potential performance. To ensure accuracy and authenticity, our safety team generates these backtests during the final phase of our safety checks. This approach seems to strike a good balance in prioritizing user safety while protecting our intellectual property rights.

In our organization, we strive for maximum transparency and aim to be as helpful as we can within our Telegram community. This makes it an ideal place for individuals interested in algorithmic trading to explore. To connect with us, simply click on this link: https://t.me/upbots.

8. What happens if a user experiences losses due to the performance of an algo bot on your platform?

A trader’s aim should never be to win every trade, as nobody has the power to foresee the future. Instead, the objective is to have more profitable trades than losing ones, which helps in building up capital. Therefore, our users should expect some losses when investing their capital into a SuperBots Vault or renting an algo from our UpBots Algo Marketplace. To mitigate this risk, we advise our users to take a longer-term view of 12 to 36 months for such investments.

As a researcher, I’m committed to fostering a profitable and fair ecosystem for all involved parties. To do this effectively, I’ve implemented a performance-based fee structure. In essence, we only collect fees when our algorithm is generating profits, utilizing what’s known as a high watermark system. This approach ensures that both the users and the ecosystem benefit from the success of the algorithm, with the users consistently winning more than they lose.

As a crypto investor, I understand that when there are no performance fees, the algorithm developer doesn’t earn any profits either. This means that if our investments aren’t successful, no one else’s are either. In essence, if we’re not winning, then neither is anyone else in this game.

This is BY FAR the fairest algo trading system in the market place. We don’t charge any fees up front like all of our competitors so anyone can try for themselves with very limited risk. 

9. Can you provide independent, third-party audits or certifications that validate the security and reliability of both UpBots and SuperBots?

Yes. All of our Smart Contracts have been audited multiple times and have active bug bounty campaigns running all the time. 

10. What specific steps are you taking to educate and empower users to make informed decisions about algorithmic trading?

That’s a great question actually because we don’t think about it that way. Our goal is to create a platform that empowers our users without them needing an education in trading, which would be required to fully understand how algo trading works.  

Our aim, along with my personal conviction, is to create outstanding software that provides users with crucial data such as past performance and risk levels in specific algorithms. By having this information readily available, they can invest their funds where it has the potential to flourish. To illustrate this concept, consider investing in a stock exchange: you don’t need an exhaustive understanding of the S&P500 to put your money into a Vanguard fund.

If an algorithm that has been consistently delivering strong performance falls short of our set benchmarks, our safety team is equipped to liquidate ongoing trades related to this algorithm and temporarily disable it.

With our SuperVault service for SuperBots, we shield users from potential risks in several ways. For one, users can monitor all transactions on the blockchain, but additionally, they can have peace of mind knowing that their risk is minimized since their capital is distributed across the top five most effective algorithmic vaults. This allocation is reviewed and readjusted every month by a smart contract.

11. If your platform experiences a major security breach or loss of user funds, what is your plan for recovery and compensation?

In UpBots, users don’t store their funds with us. Instead, they keep their assets in their own exchange accounts for trading purposes. The API access we provide doesn’t allow for withdrawals. On SuperBots, the capital is securely locked in smart contracts that have undergone numerous audits. The sole scenario where a user might lose funds is if their wallet gets hacked, which is an inherent risk in decentralized finance (DeFi), and something beyond our control.

Essentially, using UpBots and SuperBots is an incredibly secure approach for expanding your wealth. It’s clear that we’ve put substantial effort into developing tools tailored to aid users, specifically inexperienced retail investors who are statistically likely to lose about 90% of their initial crypto investments within the first 90 days.

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2024-09-03 21:11