Holderlab: Automated Crypto Portfolio Management

Holderlab is a newcomer in the world of crypto automation that aims to revolutionise cryptocurrency portfolio management.

How?

By providing an advanced and intuitive platform to create an automated portfolio of crypto assets.

Introducing tools previously unseen in the crypto space like correlation analysis and portfolio optimization (according to Markowitz model) Holderlab provides a great backtesting tool and automated portfolio rebalancing thanks to an intelligent trading bot.

During the tests that lead to this Holderlab review, we have been impressed by its quality and technological advancement.

If you are not a trader and looking for an intelligent solution to create and automatically manage the most efficient portfolio of crypto assets, pay close attention, because Holderlab might very well be the perfect solution.

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Holderlab Design

The platform is, without a shadow of a doubt, one of the most beautiful and modern in the crypto automation space.

With its vibrant colors and simple interface, you will not have a hard time navigating it, wether you are a beginners or a more advanced user.

The side menu on the left, a common theme on cloud-based platforms is intuitive and invites you to create your first portfolio.

Holderlab Design

Supported Exchanges on Holderlab

In order to use Holderlab, you will need to connect one (or several) exchange’s account(s) to the platform.

As usual, this is done via API keys which ensures that your funds are safe.

Holderlab will only be able to see what you have available, and access to trades in order to rebalance your portfolio. It will not be able to withdraw funds.

The process is easy and should not take more than a couple of minutes.

Something quite surprising for such a young platform is the amount of exchanges available.

Ten of the most used and trusted crypto exchanges are supported.

Holderlab Exchanges
  • Binance

  • Bitfinex

  • Bittrex

  • Kucoin

  • Poloniex

  • BiBox

  • Huobi

  • HitBTC

  • OKEX

  • Kraken

Holderlab Portfolio Tracking

Portfolio Tracker Overview

Holderlab offers one of the most simple and complete portfolio tracker.

This feature (as well as the Correlation matrix) is available through their Free plan and we strongly encourage you to give it a shot.

The interface is clean and allows you to track the funds on several exchanges which simplifies the tracking of your entire crypto equity.

The dashboard gives a quick overview of:

  • Your entire balance evolution
    • All time performance
    • 1 day
    • 1 Month
    • 1 year
  • Current return
  • Max drawdown
  • All time return of the market index
Holderlab Portfolio Dashboard

The asset allocation of the portfolio is indeed displayed.

You will see the following informations: 

  • Individual weight of each crypto asset (in percentage)
  • P/L of the asset
  • The amount of people copying this portfolio allocation (when the portfolio is in the “Ready-Made” marketplace)
  • The rebalancing period
Shrimpy Portfolio tracking

Portfolio / Index Optimization

Optimization Overview

This is an area where Holderlab excels and it is one of the most important step when building a portfolio or an index.

When aggregating assets, you will need to find the perfect combination. But how do you know which weight you should give to each crypto in your portfolio?

Well, this is where the optimization step comes into play and hopefully, people have thought about it before you do.

This is an area of finance called: Modern Portfolio Theory (MPT).

The Efficient Frontier & Modern Portfolio Theory on Holderlab

This theory, pioneered by Harry Markowitz, an American economist, states that it is possible to build a portfolio to maximize expected returns on a given level of risk.

Each investor will have his own tolerance to risk and should, therefore, have a portfolio reflecting their risk tolerance / aversion while still maximizing their returns.

We will spare you the formulas of Modern Portfolio Theory since this is not the core of our review, besides, Holderlab handles it for you.

What you have to know is that Hodlerlab will launch thousands of simulations of your portfolio. Each with a different weight allocation for your assets and then give you a straightforward answer on the different possibilities.

You will then have to select the most efficient, according to the level of risk you are comfortable with.

How to Optimize your Portfolio on Hodlerlab?

In order to optimize your portfolio, a few steps are required.

  • Select a date range for the simulation.
  • Build or load an existing portfolio.
  • Select the amount of simulations that will be run in order to find the efficient frontier.
    • You can select 5000 simulations on any given plan.
    • You will need a Holder Pro Subscription to test 50 000 portfolios allocations.
  • Let Holderlab do its magic!
  • Analyse the results
Holderlab Portfolio Optimization

Portfolio Performance Indicators

The simulation should not take long before you can have the results.

You will be given the following informations: 

  • 3 different portfolios, each with its own asset allocation.
    • Crypto assets and their weight
    • Return on the period selected
    • Volatility (amount of risk)
    • Sharpe Ratio (return of the investment compared to risk)

As you can see, you will get 3 different portfolios, each with its own asset allocation, according to its volatility and risk profile.

If you are a conservative investor, you might want to choose a portfolio with the minimum amount of volatility, the one on the left.

If you are really aggressive, the portfolio allocation on the far right might be your preferred choice. Higher risk, higher reward potential.

Holderlab will give you an optimal allocation. Located in the center, it is the best of both world.

A portfolio with a good return and a healthy level of risk. this will be the portfolio with the highest Sharpe Ratio.

For those that might be unfamiliar with the Sharpe Ratio, it is a portfolio or fund’s risk-adjusted returns.

Holderlab Portfolio Optimization - Results
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Correlation Matrix

Hodlerlab introduces another interesting and exclusive feature, the correlation matrix.

Building a diversified portfolio is important. But how do you know if yours is?

Simply go to the correlation matrix tab and check if two or more of the assets you plan on including in your fund are correlated.

If one asset goes up when another goes up, and they go down in price together, they are highly correlated.

If their price move in opposite directions, they are highly uncorrelated and it allows you to have a hedge.

How to use the correlation matrix?

A few steps are needed:

  • Select a date range (3Months / 6 Months / 1 year / 2 Years)
  • Select all the crypto assets you wish to compare
  • Launch the analysis

Holderlab will give you the correlation of each of your assets.

In the example below, you can see that on the selected period, Ethereum and Bitcoin were highly correlated. Which means having only the two of them in a portfolio would not have constituted a diversified portfolio.

Crypto Correlation Matrix

Now in this example, you can see that Tezos and XRP are not correlated. They tend to move in opposite directions.

This feature is great and we think other crypto index and portfolio management bots, like Shrimpy will soon catch up.

For now though, Holderlab is alone.

Holderlab Crypto Correlation Matrix 2

Amazing Backtesting

Backtesting is an important aspect of any portfolio creation.

You have to know how it would have performed in the past and try to find the most relevant combination of assets.

The process is flawless on Holderlab and the analysis is made easy thanks to the amount of informations at your disposal.

Holderlab Backtest

How to create a Backtest on Holderlab?

Step 1: Create a Portfolio or Load an Existing Portfolio

To backtest your portfolio, you will have to either load one of your existing portfolio.

Step 2: Select the Date Range

Then select the date range for the backtest.

This is an important step and you might want to try to backtest the same portfolio on different time frames.

Step 3: Choose Rebalancing Options

You will have to select the rebalancing options of your portfolio next.

You can choose a periodic rebalancing, from every day to once per year, or select a threshold rebalancing. The latter will rebalance your portfolio once the set percentage of deviation has been reach on one crypto asset. You will thus have to enter a percentage.

Step 4: Select your Crypto Assets

this is the time where you select the crypto assets you would like to have in your portfolio.

You can select up to 272 different crypto assets at the moment of this review.

Step 5: Set the Weight Allocation

An important step is to define the weight that will be allocated to each of the crypto asset in your portfolio.

This will largely affect the risk of your portfolio so you might want to try different weight allocations.

The total weight of your portfolio must be equal to 100%.

Step 6: Launch your backtest

And voila!

Congratulations, you can launch your backtest and see the results!

Holderlab How to create a backtest

Backtesting Results

Unlike other competitors that pretty much only give you the overall performance results, Holderlab gives you great insights into your backtest.

Portfolio Performance

The first chart you will have access to is your Portfolio performance.

You will see the capitalisation of your entire portfolio but also each crypto asset’s performance.

You can display the evolution in USD as well as in Bitcoin.

There is a great zooming feature that allows you to dig deeper into certain periods. Particularly useful when you chose a long backtesting range.

Holderlab Backtest portfolio Performance chart

Deviation of Allocated assets

The next chart will give you more insights into the deviation of each asset allocated in your crypto portfolio.

It is a great visualisation tool that we wish were more widely used.

Holderlab Backtest Deviation of Assets

Portfolio Return

At the bottom of your backtests results, you will have access to a summary of your portfolio’s performance and more details.

You will see:

  • Portfolio Final Return (in % and $)
  • Your Profit / Loss (in % and $)
  • Standard Deviation
  • Profit Peak (in % and $)
  • Max Drawdown (in % and $)

Portfolio Detailed Return

This section will give you a detailed view of the performance of each asset in your portfolio.

Holderlab Backtest Portfolio Detail & Returns
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Holderlab Marketplace: Ready-Made Portfolios

Social Marketplace on Holderlab

Holderlab has a social marketplace, called “Ready-Made”.

It is a place where you can browse through already created crypto portfolios and choose to emulate them.

The platform being relatively new, the amount of available portfolios is rather poor at the moment.

We have no doubt that as the platform gets the recognition it deserves and more users join, the strategy marketplace will get increasingly interesting.

Holderlab Marketplace Ready-Made Indexes

Ready-Made Strategy Overview

Available portfolios will display some basic informations about them at a glance:

  • Name
  • Used Exchange
  • Short Description
  • Historical Performance (1 day; 1 month; 1 year)
Holderlab Marketplace Portfolio Card

Ready-Made Portfolio Details

To learn more about a portfolio, you will have to check its details.

You will feel at home here, as the Portfolio page on the Ready-Made marketplace displays exactly the same informations as your own Portfolio.

You can add the portfolio to a favourite list in order to retrieve it later if need be.

To copy the portfolio, simply press the “Copy Portfolio” button, pretty straightforward.

Is Holderlab Safe?

Holderlab is safe and provides a number of features in order to guarantee your account’s security.

Multi-Factor Authentification as well as an IP-Whitelist ensures that your account stays safe and no one can access it but you.

Holderlab Security

Holderlab Team

While this is not clearly mentioned on Holderlab’s website, we did a little investigation in order to know who was behind this great platform.

Holderlab’s founder is Valo Polianskiy and the company “HOLDERLAB OÜ” is registered in Tallinn, Estonia.

At the moment, it looks like the founder is working alone on the project, which makes it even more impressive.

Holderlab Pricing & Plans

Holderlab offers cheap subscriptions plans, aside from their free plan.

Holderlab Pricing

Free Holder Plan

The free plan from Holderlab will give you access to the following features:

  • Unlimited Exchanges Linking
  • Portfolio Creation
  • Portfolio Optimization
  • Crypto Assets Allocation
  • Comprehensive All in one Portfolio Dashboard

The Holder Plan

Holderlab is packed with innovative features and its pricing is as cheap as it gets.

Starting at $7.0 per month for a yearly subscription, and priced at $7.99 for a monthly payment, it is incredibly cheap.

The Holder plan includes:

  • Unlimited Exchanges Linking
  • Portfolio Creation
  • Portfolio Optimization
  • Crypto Assets Allocation
  • Automatic Portfolio Rebalancing (By Threshold; Periodic or both)
  • Portfolio backtesting
  • Save & Load Portfolio
  • Access to Ready-Made Portfolio (Social Marketplace)

Holderlab Free Trial

The platform gives access to its entire offering via a 7 days free trial.

The good thing? No credit-card required!

If you change your mind, you won’t have the hassle of having to cancel your subscription.

Holderlab Fees

Fees can eat your profits.

An important aspect of choosing a platform in order to automate your trading or portfolio investing, is to choose one without fees.

Luckily, Holderlab understands this and does not charge any fees. You will only have to pay your crypto exchange’s fees when a rebalancing occurs.

Payments Available for Holderlab

Fiat payments

If you are keen on subscribing to a paid plan, you will be able to use the following means of payment:

  • Debit / Credit cards:
    • VISA
    • MASTERCARD
  • Paypal

Crypto Payments

Holderlab allows you to use Coinpayments in order to pay for your monthly plan.

Holderlab Payments

Conclusion: is Holderlab any good?

This Holderlab review is coming to an end, and as always it is time for our conclusion.

The platform is a great surprise. During our review we were impressed by its flawless design and innovative features.

Building and optimizing a cryptocurrency portfolio with Holderlab is not only easy but extremely interesting and efficient.

Unlike some other platforms you don’t have to guess or run a thousand backtests in order to find the perfect asset allocation and weight.

The crypto correlation matrix, the portfolio optimization feature using Markowitz’s theory and the clarity of the results and informations provided are best in class.

With its portfolio building and rebalancing that is on par with the its closest competitor Shrimpy and you have a great recipe for success.

What’s even more impressive? The founder is working alone and its hard to wrap your head around that when you see the amount of value Holderlab provides.

With a free plan and the most expensive one priced at $14.99 per month, we could not advise you not to give it a shot you want to build an automated crypto index or portfolio.