How do I automate grid trading strategies on spot grid crypto trading bot?
Our crypto trading bot is a powerful, straightforward-to-use automated trading tool with seven different strategy modes. Spot grid mode enables you to set a manual price range or use a back-tested AI strategy according to which the trading bot will execute automated buys and sells. The bot automatically buys low and sells high, generating profits without requiring active management. The grid trading bot is particularly handy for high-volatility assets in bullish markets.
What are trading bots?
Trading bots, or automated trading systems, are computer programs designed to execute trades on your behalf. They operate based on pre-programmed algorithms and strategies, allowing you to automate your trading activities. Through cutting-edge technology, these bots can analyze market data, detect trends, and execute trades with precision and speed, without constant manual supervision.
One of the key advantages of trading bots is their ability to eliminate human limitations. Fear of missing out decision making, fatigue, and the potential for human error are all minimized by trading bots. The tool can tirelessly monitor multiple markets, process vast amounts of data, and execute trades instantaneously, making sure you never miss a potential growth opportunity.
How do spot grid trading bots work?
Spot grid mode splits your starting capital between the two assets of your chosen trading pair. It then creates a grid of price points between the upper and lower bounds, and divides your starting funds equally between the number of grids used. Each time the price reaches the upper grid line, the bot automatically sells a portion of the asset. The bot automatically buys the traded asset when the price reaches the lower grid line. The trader profits from the difference between the buys and sells executed as the price swings.
Example: A user has $10,000 and wants to profit from BTC price volatility as it trades at $60,000. In manual spot grid mode, he sets a lower price of $50,000, an upper price of $70,000 and 20 grids. This places buy or sell orders at every $1,000 interval. The bot divides his starting position — $10,000 — equally between the number of grid lines. In this case, each grid line is allocated $500 (10,000/20).Since the price when he opens his trade is exactly in the middle of his stated range ($60,000), half of his 10,000 USDT is immediately exchanged for BTC. Under this setup, the bot establishes $500 BTC sell orders at $61,000, $62,000, etc., up to $70,000, and $500 BTC buy orders at $59,000, $58,000, etc., down to $50,000. Each time the market price hits a buy or sell order, the bot rebalances the grid with the starting point at the new price. If the BTC price moves to $61,000 the next day, the bot sells $500 worth of BTC for USDT. The grid rebalances with BTC sell orders above $61,000 and buy orders below. If the price moves down to $60,000 again, it fills a buy trade and nets the user just under $8.20 in profit — while also returning the BTC position to roughly its starting size. If the user had simply held his position, the price action described above would result in a $0 profit.
How can I automate trades using the spot grid trading bot?
To access the spot grid crypto trading bot, navigate to the home page and select Trade
From the options available, select Trading bots to access the bot marketplace
Within the Trading Bot Marketplace, select Grid bots
Select Spot grid to access the settings and configuration for spot grid trading
Find Spot Grid option at Grid bots > Trading bots
How do I use the spot grid’s AI strategy?
You can easily utilize our back-tested AI strategy in the Spot Grid trading bot. This feature automates the selection of grid parameters based on historical price data, simplifying the setup process and optimizing your trading experience.
Within the Spot Grid trading bot, locate the option labeled AI strategy and select it
Select the desired strategy duration from the available options: Short-term, Mid-term, or Long-term. This selection will determine the time frame for which the AI strategy will generate the grid parameters. After selecting the strategy duration, select Copy to apply the AI-generated parameters to your Spot Grid configuration
Copy any AI-generated parameters that you prefer under the AI strategy option
Input your desired trading amount and select Confirm
Adjust your investment amount accordingly and confirm to proceed
How do I manually set the spot grid parameters?
Our crypto trading bot also allows you to manually determine the spot grid parameters. This can be riskier than using the AI strategy — particularly for novice traders. However, it allows for greater user control and potentially higher profitability. Learn how to set it as below:
Enter the upper and lower price bounds for your desired trading range. Then, enter the number of grids you'd like to fill the range. This will determine the size of the buy and sell orders the bot creates. Next, enter the total amount you want to open a position with and select the relevant cryptocurrency.
Note: there's also an option to set how the grid is spaced. Arithmetic will position each grid line at fixed price intervals (e.g., every 20 USDT). Meanwhile, Geometric sets the grids using a fixed percentage from the current price, resulting in widening grids further out from the starting price.When you've determined the spot grid parameters, select Create
Determine the details that you prefer manually
On the next screen, you have the option to add a price at which to take profit from your trade or stop loss. These are useful if the asset price increases or decreases beyond the range you set, and they essentially exit your position either in profit or to limit further losses
Enter your SL/TP levels, check the trade details and select Confirm to deploy the spot grid trading bot
You can check your open positions in the Bots tab on the main trading dashboard. Selecting Bot will show additional information about trade, including the open orders and trade history. Selecting Stop will exit your spot grid positions
Check the details of your trade and select Stop to exit it
How do I take my spot grid to the next level with trailing settings?
What's trailing settings?
Trailing settings is an advanced feature that takes the power of our spot grid trading bot to new heights. With trailing settings, you can automatically extend the grid upwards or downwards, ensuring your trades stay in sync with market movements. It's designed to maximize your profit potential in both rising and falling markets, not just in sideways markets.
When do I use trailing settings?
Trailing settings is particularly beneficial in volatile markets where prices can rapidly move up or down. It enables you to capture opportunities and adapt your trading strategy to changing market conditions. Whether you're navigating a bullish run or a bearish trend, trailing settings empower you to make the most of every price swing.
Example: imagine a scenario where the market experiences a strong upward movement. With trailing settings, you can enable trailing up to set your initial grid range and let the bot automatically extend the grid upwards as the price rises. This allows you to continuously profit from upward momentum, capturing gains at each grid level and maximizing your growth potential.
On the flip side, in a market downturn, enabling trailing down will extend the grid downwards, allowing you to take advantage of falling prices. By automatically adjusting your grid range, you can strategically enter buy positions at lower levels and sell positions at optimal points, maximizing profitability even in bearish conditions.
Trailing settings empowers you to adapt to market dynamics, capitalize on price movements, and unlock greater profit potential. It's a game-changer for traders looking to stay ahead in any market situation.
How do I use trailing settings in the spot grid trading bot?
Start by creating a spot grid in the trading bot section. Scroll down to the advanced settings section, where you'll find the trailing up and trailing down options. Select Not set to access the popup window.
Set the trailing details under the Advanced setting
Enable Trailing Settings to activate trailing up and trailing down by simply check the respective boxes. Then, input a price limit that suits your trading strategy. Once you're done, select Confirm to save the settings.
Within the Spot Grid trading bot
Create and confirm the order: After configuring the trailing settings, select Create to generate the spot grid order. Review the order details, ensuring the trailing settings are correctly set. Once you're satisfied, select Confirm to finalize and execute the order.
Confirm your order to carry out complete implementation
