Trading bots can automate your trades, but they also have limitations. One of the most common mistakes traders makes using an AI trading bot without understanding its rules and boundaries. Grid trading is a popular method among day traders. The bot places buy/sell orders within a specified upper and lower limit. Furthermore, if the asset’s price jumps below the specified limits, it does not execute any more buy orders.
Defining Grit Trading
Grid trading is a type of trading with a price range on every level. The price range varies according to the level of the price. This kind of trading is also known as Price Grid Trading.
Grid trading is a common strategy used by forex traders that allow the trader to buy and sell orders at predetermined price intervals. The range of price intervals is divided into multiple levels forming a grid.
A grid can be defined as an area in which investors can simultaneously place buy and sell orders without being executed against each other by the brokerage firm. A grid allows you to buy and sell orders at predetermined price intervals, avoiding trade with another order within the grid. The grid also helps you to avoid unwanted costs and risks.
Top Trading Bots For Crypto
Pionex
Pionex is a trading software company that has developed a Grid Trading Bot for EVE Online. The Pionex AI Advisor suggests a set of parameters calculated from backtesting the last seven days, including price range and profit per grid. The recommended price range and profit per grid are available for preview.
Users can set their parameters, such as upper limit price, lower limit price, number of grids, amount per grid, and stop-loss price. They also include two types of Grid Trading Bots – “Use AI Strategy” and “Set Myself.”
Bitsgap
Bitsgap is a Binance grid trading bot that offers many features. They allow you to set the spacing of your grids, meaning you can adjust your trading costs even further than 0.1%.
They also allow you to customize most aspects of your trading bot. You can choose to set a stop-loss, take profit, and trail up (which moves the stop-loss up when the price rises).
The system utilizes an auto-trading engine that opens orders to keep your desired portfolio balance constant regardless of market conditions.
Bitsgap has created a Binance grid trading bot that allows you to easily set your own rules for automated trading on the crypto exchange. The Bitsgap Binance grid trading bot provides a wide range of customizable settings, including:
Establishing how many coins you’d like to trade within each grid (the default is 100), how much spacing you’d like between each grid (the default is 1%), and even what percentage of your funds you’d like to allocate toward each grid (the default is 10%).
Quadency
Quadency offers pure grid trading bots that can be used to automate grid trading strategies on 1, 2, or 3 exchange pairs. The bot is a stand-alone application that can independently carry out the grid trading strategy based on predefined trading rules.
This means that users no longer need to spend their time monitoring the charts 24/7 and worrying about manually closing trades or missing good price movements. Instead, they can just set up their trading strategy and let the bot do its work.
The company’s flagship product is Grid Bot for Poloniex, which allows users to trade all three major types of grids: triangle, rectangle, and straight. The product also supports various grid sizes that can easily be customized based on the user’s investment capital and risk tolerance.
3Commas
3Commas is an easy-to-use trading bot platform developed by a team of professional traders and programmers. The 3Commas bot has two modes: manual and AI modes.
The manual mode allows you to customize your bot with access to unlimited grids and direct control over the grid settings. In this mode, users can set limits for both the upper and lower limits, select the desired quantity for each grid, and select an investment amount for each grid. Once everything is in place, you can position your grid where you want it to be and start receiving returns on your trades.
The AI mode offers pre-set grid configurations based on historical price data that generate an estimated profit per grid. All you have to do is connect your exchange and provide funds to the bot. The bot then starts running and executing trades on your behalf.
KuCoin Grid Bot
KuCoin has announced the launch of a new cryptocurrency trading bot, which is available for users via the exchange’s mobile app.
KuCoin’s crypto trading bots are only accessible via the exchange’s mobile app. The platform has four types of Grid bots: Scan, Signal, Auto, and Manual. With these bots, traders can execute trades without worrying about missing out on potential gains.
The new crypto trading bot made its debut in October 2018. KCS coin are used to pay for using the crypto trading bot. If you want to use any of KuCoin’s crypto trading bots, you need to deposit at least 10 KCS to KuCoin and enable the relevant API access permissions.