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How to Earn Profits from Grid Trading Bots?

With the price of cryptocurrencies changing dramatically in just a few minutes and markets open 24 hours 7days a week, it is becoming more difficult for crypto traders to keep up with. People who are new to the market cannot be able to react swiftly enough to the fluctuating market to make profits. In addition, delays in transactions can create a worse situation. It is impossible for traders to keep an eye on cryptocurrency exchanges and markets all hours of the day to get more efficient outcomes. Recommended site?

Crypto trading bots offer us the opportunity to automate crypto trading. They use algorithms that trade and execute transactions.

We will discuss grid trading as well as trading strategies and the benefits for users.

What is a grid-based trading strategy?

This is one of the most well-known crypto trading strategies that involve placing orders above and below a set price by using the price grid of the orders. This strategy involves placing the orders that are gradually increasing or decreasing in prices.

In contrast to other strategies which typically depend on technical indicators to generate any type of buy/sell signals this strategy employs the market’s price movements to purchase low and then sell high. This could be done by placing multiple orders on the sell side. When the price fluctuates up or down in the grid, orders are replaced automatically with appropriate buy or sell order.

If a buy-order is completed, a sale order will be added to the gridline above, and in the event that a sale order is successful, a buy order is also placed. The difference between these lines is the profit earned on every purchase or sale.

Usually, trading bots work on this strategy in the ranging market, which has no specific direction. Grid trading bots do not reverse gains made previously but rather take advantage of market volatility in order to lock-in gains and profit from opportunities. Bittrex Trading Bot uses grid strategy.

What is grid trading and how it works

Grid traders create lower and upper limits on the grid, where they can make sell and buy transactions. The buy order is fulfilled if the price falls below the lower limit. The question now is what happens? Here’s an example that can help you comprehend: Let’s say that the value of XYZ the cryptocurrency asset, is $10,000. In this case, the trader would determine a lower limit as low as $59,000 and a higher limit of $10,000. The space between these two price limit is known as the grid. When the price falls to $9,500, the buy order will be executed. Likewise, when it is above $10,500, a sell order will be executed. Here the traders can set multiple sell or buy orders at different points in the grid.

The trader has to manually decide on the upper and low limits on each grid. Then, the orders are executed by the trading robots within the pre-determined price intervals.

The larger is the difference between the upper and lower price limits of the grid, the more possible profits.

Choose how many grids want to use in the price range that you decide to use. By splitting the price grid in smaller ones trading, traders are able to make profitable trades. The more frequently you trade the greater number of grids are there. This kind of trading can be performed at intervals such in 1 minute, five minutes, 15 mins and 30 minutes. It can also be done for 1 hour.


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