Trading bot FAQ
What's a trading bot?
Trading bots are automated software programs that execute trades on your behalf based on specific parameters and rules that are configured by you.
There are several types of trading bots offered on our platform - all come with risks that you should carefully consider before trading:
Spot grid bot: divides a price range into levels, buying low and selling high within this range.
Dollar-cost averaging (DCA) bot: buys more crypto if the price falls, doubling down on each order and aiming to sell at a profit when the price rises.
TWAP bot: splits a large order into smaller trades executed at regular intervals to help reduce market impact and achieve an average price over time.
Iceberg bot: displays only a small portion of a large order at a time, helping to reduce market impact and manage trading visibility.
Trading bots place orders directly on our supported order books, just like manual trades made on the platform. The bot uses the parameters you've set to decide when and how to place buy and sell orders based on real-time market conditions.
Please note that it's your responsibility to ensure all bot settings are configured correctly, as incorrect inputs may result in unexpected outcomes. Trading bots don't guarantee profits and carry inherent risks, including but not limited to the potential for losses due to market volatility and unforeseen market changes.
What trading products support each bot?
| Product | Trading Bot | |||
|---|---|---|---|---|
| DCA | GRID | TWAP | Iceberg | |
| Spot | Y | Y | Y | Y |
| Futures (available to verified wholesale customers only) | - | - | Y | Y |
What are the risks?
Trading bots aren't designed to provide investment advice: your use of trading bots doesn't grant us control over your account's trading activities, nor should they be seen as an offer to buy, sell, or hold digital assets. You acknowledge that using one or more Trading Bots may incur fees charged by us for the underlying trades.
Risk of loss: using Trading Bots may result in the total loss of the digital assets or fiat funds that you allocate to them. You should carefully evaluate whether trading or holding digital assets is appropriate for your financial situation. We recommend consulting a legal, tax, or investment professional regarding your specific circumstances.
Price slippage risk: during periods of high market volatility or low liquidity, price slippage may occur, causing trades to be executed at a price significantly different from the order price. For example, a buy order set at $30,000 during a rapid market drop may execute at $29,800, potentially impacting your trading strategy.
Reduction in available margin: for wholesale customers who have access to derivatives trading on our platform, funds allocated to the Spot grid trading bot will be segregated from your trading account, reducing your available margin. This could result in forced liquidation of your open positions if there's insufficient margin. Ensure that you monitor the risk levels of your other open positions closely, as this could affect your ability to maintain them.
Terms of use: your use of Trading Bots is governed by our Terms of Service and/or other agreements you have entered into with us. We make no representations or warranties and assume no liability beyond what's outlined in those agreements.
Are there any fees involved?
All of our trading bots are free to create and use. Standard trading fees apply only when your bot executes a trade—these fees are automatically deducted at the time of each transaction. If the bot makes frequent trades, like in low liquidity or highly volatile markets, these fees can add up over time and may affect your overall returns.
Keep this in mind, especially if your bot is set up for frequent trades, as it could impact your overall returns.
Learn more about fees here.
When does a trading bot stop?
A trading bot will stop operating under the following circumstances:
Based on your parameter settings: the bot will stop trading when it reaches specific conditions or thresholds you have configured:
Spot grid bot: if the price falls below the lower limit of the price range, the bot will stop placing new orders.
DCA bot: if the number of safety orders reaches the maximum limit, the bot won't place further orders.
You can also configure stop-loss limits and profit targets which will automatically stop the bot once those orders are executed.
Unpredictable circumstances: the bot may stop operating due to unforeseen circumstances that trigger our Risk Management Stop (RMS) protocols, such as the delisting or suspension of underlying cryptocurrency.
Manual stop: you can manually stop the bot at any time by selecting the Stop option on the platform.
It's your responsibility to check on your trading bots regularly to see if any of them have stopped due to the above.
Spot grid trading bot-specific FAQ
What's a spot-grid trading bot?
A spot grid bot is a trading bot that you can customise and deploy to automatically place buy and sell orders at set intervals and within a specified price range. The aim of the spot grid bot is to systematically buy at lower prices and sell at higher prices within a specified price range. As with all bots, there's no guarantee that this aim will be achieved. The bot will only operate according to the parameters you set.
The term 'grid' refers to the intervals between trading levels where these orders are placed.
How does a spot grid bot work?
A spot grid bot is designed to buy crypto at low prices and sell it at higher prices within a specified price range, aiming to generate incremental profits. When it's activated, it spends a portion of your allocated trading funds to buy crypto based on your set trading range and the current market price. The bot then places buy orders below the current price and sell orders above it at set intervals, known as grids, which together form your entire trading range.
When the crypto price reaches a buy or sell level, the trade is automatically executed. After this, the bot then places new buy orders below the current price and sells orders above it once again. This setup allows the bot to continuously buy low and sell high.
Grid trading doesn't guarantee profits and has limitations, amongst others: in a strongly trending market, buy or sell orders may remain unfilled, or in a downtrend, filled buy orders may lead to losses. The grid bot may lack flexibility should market conditions suddenly change, and have higher than expected trading costs due to the number of orders being executed, particularly in volatile markets.
How do I create a spot grid bot and set the parameters?
Note: the spot grid bot is only available for spot trading.
You can create a spot grid bot by setting the following key parameters:
Lower price: the lowest price level at which the bot will operate. The bot will stop placing orders if the market price falls below this level.
Upper price: the highest price level at which the bot will operate. The bot will stop placing orders if the market price exceeds this level.
Grid quantity: this refers to the number of price levels (grids) that your selected price range is divided into. The bot will place buy and sell orders at each level. You can choose between arithmetic (evenly spaced grids) or geometric (proportionally spaced grids) distribution. Having more grids means the bot will execute smaller trades more frequently. Fewer grids result in larger trades but less frequent execution. For example, if the price range is 100-400, and you set the grid quantity to 3 with arithmetic mode, it would create three grids: 100-200, 200-300, and 300-400.
Grid mode:
Arithmetic: maintains a consistent difference between each grid level (for example, 1, 2, 3, 4).
Geometric: maintains a consistent ratio between each grid level (for example, 1, 2, 4, 8).
Investment amount: this is the total amount of the selected currency the bot will use to place buy and sell orders across the grids. The maximum amount is usually the available balance in your trading account for the selected currency.
Other optional parameters:
Trailing up/down: this option allows the bot to automatically adjust the grid as the price moves, improving flexibility and maximizing capital utilization by adapting to market fluctuations.
Take profit (TP) price: an optional price target. If the price reaches this level, the bot will stop trading and sell all base assets at the market price.
Stop loss (SL) price: another optional setting aiming to limit losses. If the price drops to this level, the bot will stop trading and sell all base assets at the market price.
How do I manage my spot grid bots?
From the trading bot dashboard, you can monitor and manage your spot grid bot:
Modify parameters: adjust the bot's price range and grid quantity even after it’s active, allowing flexibility in response to market changes.
Withdraw profits: transfer grid profits earned by the bot directly to your trading account.
Stop your bot: when you stop the bot, all pending orders are cancelled. You can choose to either sell crypto at the market price or keep it. In both cases, funds or crypto are transferred to your trading account.
View details: check the Bot Details page for real-time performance insights and statistics. On this page, you can view the amount of filled orders, which represent the total number of completed orders, and the amount of matched trades, which represent the total number of completed buy and sell pairs executed by the spot grid bot within your configured price range.
Replicate Setup: Recreate a bot with the same parameters.
Learn more about spot grid trading bot and how you can utilize it here.
Dollar-cost averaging (DCA) trading bot-specific FAQ
What's a dollar-cost averaging (DCA) bot?
A DCA bot is a trading bot that allows you to purchase crypto at multiple price levels and aims to sell it for a profit if your target is reached. This bot aims to help you achieve a better average buying price by automatically placing additional buy orders when the price falls. If your profit target is reached, the bot automatically sells your crypto holdings. As with all bots, there's no guarantee that this aim will be achieved. The bot will only operate according to the parameters you set.
How does a dollar-cost averaging (DCA) bot work?
Note: the DCA bot is only available for spot trading.
A DCA bot begins by placing a buy order at a specific price. If the price falls, based on your settings, the bot executes another buy order, and this cycle continues until you hit your maximum number of orders, take profit level, or stop loss level.
Cycles: If the price reaches your take profit level, the bot sells your crypto holdings and then starts another cycle starting from the first buy order. However, if the price hits your stop loss level, the bot halts all activity and won't start a new cycle.
Please note that DCA bots don't guarantee profits and may result in losses, especially in declining markets where the stop loss level could trigger. Additionally, the incremental buying approach may limit gains in rising markets.
How do I create a dollar-cost averaging (DCA) bot and set the parameters?
You can create a DCA bot by setting the following key parameters:
Price steps: defines the percentage difference at which safety orders will be executed. For example, if set to 1%, the bot will place safety orders at 1% price drops.
Take profit (TP) target per cycle: specify the percentage profit the bot should aim for in each cycle. When the bot achieves this target price, it ends the current cycle, completes the order, and starts a new cycle as specified.
Initial order amount: the starting investment amount for each cycle, placed by the bot to initiate the DCA strategy.
Safety order amount: the amount used for each safety order within a cycle. These incremental orders are placed at your configured price steps to lower the average entry price.
Max safety orders: determine the maximum number of safety orders the bot can place per cycle. The actual number depends on available funds.
Other optional parameters:
Amount multiplier: set a multiplier to increase the size of each subsequent safety order as the price moves against the initial order. For example, a multiplier of 1.5 will make each safety order 50% larger than the previous one.
Price steps multiplier: adjusts the price gap between each safety order. This setting incrementally increases or decreases the gap between safety orders as the price changes. For example, with a 1% initial price step and a multiplier of 2, the safety orders will be placed at 1%, 3%, 7%, and so on (doubling the gap after each order).
Stop loss (SL): another optional setting to limit losses. If the price drops to this level, the bot will stop trading and sell all base assets at the market price.
How do I manage my dollar-cost averaging (DCA) bots?
From the trading bot dashboard, you can monitor and manage your DCA Bot:
Stop your bot: When you stop the bot, all pending orders are cancelled. You can choose to either sell any available crypto at the market price or keep it. In both cases, funds or crypto are transferred to your trading account.
View details: check the bot details page to monitor performance, including active cycles and profit/loss metrics.
Replicate setup: recreate a bot with the same parameters.
Looking to understand the DCA bot, particularly the Martingale strategy? Find out more here.
Iceberg trading bot-specific FAQ
What's an Iceberg bot?
An Iceberg bot is a tool designed to execute large buy or sell orders by breaking them into smaller, visible portions. This approach aims to minimise market impact and manage trading visibility.An iceberg bot allows you to:
Slice large orders into multiple small orders.
Place orders on the market according to a preferred mode (Quick execution, Price-speed balance, or Passive queuing).
Automatically adjust orders based on market depth.
When a smaller order is completely filled or the market depth changes, the bot recalibrates and places new orders based on the latest market conditions.
How do I create an Iceberg bot and set the parameters?
The Iceberg bot is currently only available via our web interface. To create an Iceberg bot, configure the following key parameters:
Basic settings:
Amount per order: The crypto amount for each split order.
Number of visible orders: The number of orders placed at once in the order book that is visible to the market. The bot will maintain that number of visible orders until all the total amount is used up.
Order amount: The total amount to trade before the bot stops.
Advanced settings:
Preference:
Quick execution: To aim for quick execution, it’ll adopt a more aggressive approach when placing the first order. The first buy order will be placed at the best ask price, the second order at a price between the best bid and the best ask, the third order at the best bid, and so on.
Price-speed balance: To aim for a balanced execution between time and price, it’ll adopt a moderate approach when placing the first order. The first buy order will be placed at a price between the best bid and the best ask, the second order at the best bid, the third order at the second best bid, and so on.
Passive queuing: To aim for execution at more favorable prices, it’ll adopt a more conservative approach when placing the first order. The first buy order will be placed at the best bid price, the second order at the second best bid, the third order at the third best bid, and so on.
Limit price:
For buying: If the market price exceeds this value, the bot halts until the price returns below the limit.
For selling: If the market price drops below this value, the bot halts until the price rises above the limit.
Start condition:
Options include instant, price, and RSI triggers.
Example (BTC/USDT): a user wants to buy BTC while the price is below 90,000 USDT using the Iceberg Bot.
Setup:
Set the Amount per order: 0.1 BTC.
Set the Number of visible orders: 5.
Set the Order amount: 5 BTC.
In Advanced Settings, select Preference: Price-speed balance.
Set the Limit price: 90,000 USDT.
Set the Start condition: Instant.
Execution:
Five orders are placed in the order book:
The first limit buy order is placed at the current middle price (Ask 1 + Bid 1)/2.
The second limit buy order is placed at Bid 1 price, the third at Bid 2 price, and so on.
Each order amount is around 0.1 BTC, adjusted by a randomization factor.
If the price exceeds 90,000 USDT, the bot temporarily halts.
If an order is filled, a new order is placed based on the latest order book position.
When market depth changes, existing orders are canceled, and new ones are placed accordingly.
How do I manage my Iceberg bots?
From the trading bot dashboard, you can monitor and manage your Iceberg bot:
Stop your bot: you can manually stop the bot at any time. Upon stopping, all pending orders are canceled, and remaining funds are returned to your trading account.
Time-Weighted Average Price (TWAP) trading bot-specific FAQ
What's a Time-Weighted Average Price (TWAP) bot?
TWAP(Time-Weighted Average Price) is a trading strategy that involves breaking down a larger trade into smaller parts and executing these parts at regular intervals of time.
There are several key benefits to using the TWAP strategy, including:
Reducing market impact: TWAP helps to reduce the market impact of large trades by spreading the order out over a specified time period. This helps to reduce the volatility that can occur when a large trade is executed in a short amount of time, and helps to ensure that the average price of the instrument is more accurately reflected.
Improved price accuracy: by executing the trade over a specified period of time, the TWAP strategy helps to ensure that the average price of the instrument is more accurately reflected. This is because the price of the instrument is being measured over a longer period of time, rather than just at the moment the trade is executed.
Increased flexibility: The TWAP strategy allows traders and investors to specify the time period over which they would like to execute the trade. This provides a greater degree of control over the execution of the trade, and allows traders and investors to adapt their strategy to changing market conditions.
How do I create a TWAP bot and set the parameters?
To create a TWAP Bot, configure the following key parameters:
Price Range:
Order Mode:
Constant: Fixed value around the best bid price when buying or the best ask price when selling.
Percentage: Percentage-based variance around the best bid price when buying or the best ask price when selling.
Price Variance: Determines how aggressively the bot places orders. Higher variance increases the likelihood of immediate execution, but this may result in paying a higher price (for buys) or receiving a lower price (for sells).
Limit Price: The limit price sets when the bot starts. For example, when buying, if the price falls below your limit, the bot places small buy orders around the best bid price, using your chosen constant or percentage variance. Setting a limit price too far from the current market price might delay the bot's start. Setting a realistic limit price may help avoid delays.
Time Interval for Split Orders: Define the time gap between consecutive order placements (e.g., every 10 seconds).
Order Amount:
Amount per Order: The crypto amount for each split order.
Total Amount: The total amount to trade before the bot stops.
How do I manage my dollar-cost averaging TWAP bots?
From the trading bot dashboard, you can monitor and manage your TWAP bot:
Stop your bot: You can manually stop the bot at any time. Upon stopping, all pending orders are canceled, and remaining funds are returned to your trading account.