Checklist

How to evaluate a crypto trading bot: a 10-point checklist

Before you connect money to any crypto trading bot, check how it handles evidence, keys, risk limits and exits. A practical checklist, applied to CryptoIQ too.

Published

CryptoIQ Sentinel Journal — AI trading systems and decision receipts

Start with the claims, not the features

Comparison pages that rank “the best crypto trading bot” usually score features and fees. The more useful question is what the vendor lets you verify. A bot you can inspect is worth more than a bot with a longer feature list. The checklist below works for any product, including ours; each point ends with how CryptoIQ Sentinel answers it so you can hold us to it.

The checklist

  1. Is performance verifiable? Look for a record tied to individual trades, with the mode (live, paper, replay) and period stated. Be wary of a single percentage with no source. CryptoIQ publishes no win-rate or profit figure in marketing copy and points to its proof page and per-trade receipts instead.
  2. Are simulated and live results kept apart? A paper or backtested number presented next to live ones is a red flag. In Sentinel, Watch, Paper, Replay, Shadow and Live are distinct modes and labelled as such.
  3. What permissions does it ask for on your exchange? It should need trading permission only. Never enable withdrawal rights for a bot. CryptoIQ states that its keys are trading-scoped and that the engine never has withdrawal rights; funds stay at the venue.
  4. Who can authorize an order? Find out whether a model output alone can place a trade. In Sentinel, a model response cannot; execution needs a signed decision contract, safety gates and backend readiness.
  5. Is there a hard stop? Look for a kill switch, loss limits and required protection on each order. Sentinel has a kill switch in the cockpit and per-tier live caps for leverage, risk percentage and notional size.
  6. Is there a paper stage? You should be able to watch the system behave before it touches money. Sentinel offers public Watch mode and a $10,000 simulated Paper balance with no cash value.
  7. Do the fees add up? Add the subscription, exchange fees, spreads and any profit share. CryptoIQ plans are Starter $19/mo, Pro $39/mo and Expert $199/mo, with no execution fee from us; the broker’s own fees apply.
  8. Can you leave cleanly? Check cancellation and refund terms. CryptoIQ offers a 14-day full refund on a first payment; annual plans are not refunded pro-rata after 14 days.
  9. Does it say what it cannot do? Honest products list limits. Sentinel’s live execution is limited to venues that pass backend validation, and some venues are observe-only.
  10. Can you check the company? Look at the domain age, the people behind it, and independent mentions. The CFTC advisory recommends researching the background of a company and getting a second opinion before trusting a platform.

Red flags that should end the evaluation

  • Guaranteed or “risk-free” returns, or a fixed monthly percentage.
  • Pressure to deposit quickly, or rewards for recruiting other people.
  • A request for withdrawal permission or your exchange password.
  • Screenshots of profit with no account, period or mode attached.
  • No named company, no terms, no way to contact anyone.

More on these in are crypto trading bots legit?

A fair test you can run yourself

Before any live money, run the bot in a paper or watch mode for long enough to see it in several market conditions, not one good week. Write down in advance what you would count as failure, such as a maximum drawdown you would not accept. Then read its refusals as carefully as its trades: a system that never explains why it stayed out is hard to trust. See also why max drawdown matters and position sizing.

None of this predicts how a bot will perform. It only reduces the ways you can be surprised.

Frequently asked questions

How do I choose a crypto trading bot?

Choose on verifiability rather than promises: a per-trade performance record with the mode and period stated, trading-only API permissions, a hard stop such as a kill switch, a paper stage before live money, transparent fees, and clear refund terms. Avoid any bot that guarantees returns.

What API permissions should a trading bot have?

Only the permission to read balances and place or cancel orders. A trading bot should never need withdrawal permission. If a bot asks for withdrawal rights, treat it as a red flag.

How much does CryptoIQ cost?

CryptoIQ has a Free tier with public Watch mode and a simulated Paper balance, then Starter at $19 per month, Pro at $39 per month and Expert at $199 per month. We charge no execution fees; the broker’s own fees apply.

Is there a best crypto trading bot?

There is no single best bot for everyone, and be cautious of lists that rank bots without disclosing how. The right choice depends on your venue, risk tolerance and how much you can verify about the product.

Keep reading

Risk and about this note

Educational material, not investment, legal or tax advice. Trading crypto assets involves substantial risk of loss, and leverage can multiply losses. Nothing here predicts or promises any return, fill or outcome, and no CryptoIQ performance figure is stated. Past results do not guarantee future performance.

Published by CryptoIQ. Prepared with AI assistance. No independent specialist review is claimed. Linked sources explain concepts and do not endorse CryptoIQ.