They are also used by traders who try to shorten or long the market. Pionex’s Infinity Grid Bots are the premium version of Grid Trading Bot. They allow you to “buy low and sell high.” The total number of assets remains the same while the price is increasing.

They do have a few additional products, which I have not tested, and I suggest not trying anything apart from manual bot trading on BitUniverse. Once I have more details, I will write a separate article for the same. I’m happy to announce the launch of CoinSutra VIP, which is a paid community. You can join is to learn how to earn passive income with grid bot trading strategy, and weekly calls on which coins you should be trading to make income from grid bot. The system will calculate your Initial Margin value based on the number of grids, leverage, and the strategy’s price range. If you ever wondered how to capitalize on grid bots and whether you should try it out, 2022 might be a good year as most markets, including crypto, are sideways.

GRID

The highest sell price of the interval is set by historical data or refers to the upper edge of the Bollinger band, which is a difficult-to-reach price high. Markets are dynamic, so running a fixed-parameter bot for a long time isn’t profitable. They are a great tool to capitalize on ranging environments, but a trader must be prepared for that environment to end.

• The script has a small error , it does not take into account the size of the commission.
• OKX’s Moon Grid bot automatically buys cryptocurrencies into uptrends and sells into downtrends.
• Grid trading performs the best in volatile and sideways markets when prices fluctuate in a given range.
• The bot is a no-code rule platform that allows traders to automate their trades without programming.
• 3Commas also offers AI-based grid trading, where you let their AI decide the upper and lower limit for the grid.

We now have to decide on eight automatic buy and sell limit orders because we chose a grid number of eight. Because the price here will fluctuate between 60,000 USDT and 62,000 USDT, we can adjust our grid accordingly. The grid of orders against the trend is closed by hedging them. The grid trend multiplier can hedge all positions, or the last two, or the lowest, and the highest. There is also a Smart Hedging option available, when the robot chooses the most optimal method from the ones described above.

It also works with all popular cryptocurrency exchanges, and their free tutorials and guides will help you to master the art of Grid trading. I recommend you to start with a small amount, and use less leverage when testing this. Give it some time to get accustomed to all the settings, and then increase your capital. Now, on this page, there are settings that you need to configure to start setting up your trading bot on Binance.

What is a Grid Trading Bot — 6 Best Crypto Grid Bots 2023

I strongly recommend to immediately practice the new knowledge. You can try everything I have described today in the convenient LiteFinance trading terminal, which I used when writing this article. The base price level is an important factor that impacts the effectiveness of the grid strategy. They are the arithmetic mean between the last two extreme points, or the current level of the last closed candle. Positions are closed with a minimum profit set in the settings. In addition, positions with the highest risk can be closed using accumulated profit, taking into account broker commissions and swap costs.

This is where the grid trading strategy may be helpful as a quantitative crypto trading method. Grid trading helps in buying and selling cryptocurrencies in a range set by the trader. This essentially creates an area or a grid where the grid trading bot will work and calculate profitable buy-sell orders. Grid trading takes place in both spot and futures crypto trading. Spot grid trading bots generate profits only on capital deployed since they use spot wallet funds and insufficient funds will automatically stop the trade. This makes spot trading relatively safer since the trade is solely with one’s own money.

Not only does this help https://forexbitcoin.info/ investors to overcome market volatility, but it also provides a steady source of profits. A hedge grid trading strategy places both long- and short-sell orders inside the same grid. This enables the strategy to potentially profit no matter whether the price rises or falls.

Example of Grid Trading in the EURUSD

The effectiveness of this trading system largely depends on the correct choice of the interval between pending positions, stop losses and take profits. A correct price grid allows you to profit from even the most insignificant market movement, and with an increase in the amplitude of fluctuations, you can increase your profit. For those new to grid trading bots, it is recommended to utilize the Pionex AI strategy for setting up the parameters. As an illustration, consider the BTC/USDT trading pair with an upper price of 150,000 USDT and a lower price of 15,000 USDT. Once the Grid Trading Bot is successfully set up, it will initiate trades by purchasing a specified percentage of the asset at the current market price and placing sell orders above it. At the same time, the Grid Trading Bot will allocate a portion of USDT to place buy orders below the current price.

The borrowable fund is the fund available in the pionex pool for traders. The daily interest is dynamic according to the available borrowable fund. If the number of users using leveraged grid bot increases, the interest rate will increase and vice versa. Use AI Strategy – The Pionex AI Advisor suggests a set of parameters calculated from backtesting the last seven days.

What Could Go Wrong With Grid Trading Bot?

A grid trader could set a grid with a lower limit of 60,000 USDT and an upper limit of 62,000 USDT to take advantage of this short-term volatility. Grid trading is a method that allows you to make a profit by placing hedging orders below and above the base price. It provides the greatest profit making opportunities during a sideways movement, when the price goes first up and then down in a cycle. In this case, pending orders are placed against the trend, so sell positions are located above the base price, and buy positions are below. Orders are placed with the trend when a directed upward or downward movement is expected. Frst of all, like other methods of grid trading, this strategy is not particularly effective during the formation of strong trends.

Grid Trading helps you to make profits by buying and selling orders at predefined price intervals. It allows you to take advantage of fluctuating market prices. It definitely lacks the feature of stop-loss, or auto grid resizing, which may make a lot of difference for many novices. Unlike others, 3Commas is not free, and cost about $49/month for grid bot trading. However, you get 3 days trial, which is good enough for you to test out the system. Either way, in my experience 3Commas, is a solid choice for a majority of intermediate and experienced traders.

What I like about BitUniverse , it offers many advanced features that no other similar tool offers. However, If you are new here, I highly recommend reading about the best crypto trading bots apps. Lastly, ensure that your grid trading parameters are compatible with the prevailing market conditions. Especially in range-bound markets, limits orders placed out of range are unlikely to get filled and, as such, causing missed opportunity. The grid trading parameters can be adjusted in real-time according to the prevailing market conditions.

It provides users with various trading tools for building their own distinct trading bots, unlike presets offered by other platforms. Trality also allows both new and experienced traders to backtest and live-trade with their built custom strategies. The Percentage Range Indicator is useful for assessing the volatility of pairs for percentage-based grid bots. The higher the percentage range for a given time period, the more trades a grid bot is likely to generate in that period.

• The Moon Grid trading bot profits from crypto’s famous price volatility by buying or selling crypto assets on a user’s behalf, without the need to actively manage a position.
• The forex market is the largest financial market in the world, with a daily trading volume of US$6.6 trillion, making it even larger than the stock market.
• Meaning it should profit equal to 1% but it only got 0.06% as grid profit.
• This ensures that you never miss an opportunity for arbitrage, as the bot operates even when you’re sleeping, eating, or working.

I noticed that the unrealized how to buy, sell & trade monero for beginners grows in the negative amount while my profit from arbitrage is positive, leading to the “total profit” remaining close to zero.Thanks. Pionex AI strategy employs state-of-the-art quantitative algorithms to establish a comprehensive system for providing recommendations on Grid Trading Bot parameter settings. Grid Trading is particularly open to automation because to its evident logic and the fact that all of its actions are predefined and unrelated to market behaviour. Not only that, but using Grid Trading with a Trading Bot is considerably easier and more efficient than trying to follow the strategy with manual trades.

You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle. When the grid is set to open, it is not possible to adjust the grid’s price interval with the market price. So if there is a difference between the grid interval set at the beginning and the current market price trend, you can only close the grid manually and set a new grid. In this setting, each grid has the exact single-grid yield, which is suitable for currencies with high volatility. Unlike arithmetic grids, geometric grids have the same percentage of the grid price. Geometric grids are suitable for ultra-wide grids with large price gaps or unlimited grids with no price range restrictions.