What is a Grid Trading Bot — 6 Best Crypto Grid Bots 2023
What is Grid Trading Bot?
Grid Trading Bot is a trading bot that assists you in carrying out the Grid Trading Strategy.
It enables you to place a series of purchase and sell orders within a given price range. When a sell order is fully executed, the bot instantly places another purchase order at a lower grid level, and vice versa.
What is Grid Trading?
Grid trading is a trading method that comprises placing a series of buy and sell orders at predefined intervals around a fixed price. It develops a commerce grid in this manner.
Grid trading works best in a competitive market with regular price variations. It assures profitability each time the selling price surpasses the purchase price during a lateral price movement by automatically executing low purchase orders that lead to high sell orders, eliminating the need for market forecasting.
A variety of factors must be considered to enhance grid trading earnings. What if I told you that there is a method for you to profit from this volatility? What if you could automate your trades and sit back and watch your earnings roll in on a regular basis?
For example, a pair with frequent and large ups and downs but a rather constant average price over the long term is almost certainly a strong choice for Grid Trading. With that stated, let us go through the essentials.
Disclaimer : Throughout this article I have used referral links. Most of these services gives you additional discounts if you use referral links.
5 Benefits Of Using a Grid Trading Bot
1. Trustworthy Crypto Trading Strategy
Grid Trading has been around for a long time and is a well-established, well-tested, and profitable trading approach. Several successful traders have employed it for decades on various marketplaces. The crypto business, in particular, has shown to be one of the most trustworthy venues for Grid Trading methods due to its extreme volatility.
2. Usability
The strategy is straightforward to understand and use because it contains no sophisticated calculations, measurements, or market indicators. Setting up for entities with no past expertise in the crypto trading markets will be simple.
3. Adaptability
Grid Trading applies the most fundamental trading concept (buy low, sell high, earn the difference). Therefore, it can be applied to nearly any market and effectively generate a profit, independent of trend or market behavior.
You may actively determine the frequency and period of the strategy by selecting the price range and the number of grids.
Grids can be set up for the short term, getting hundreds of trades every hour to capture micro profit from all of the day’s minor changes, or for the long term, by selecting a large range and leaving it to run for months to gain profit from every larger trend shift.
4. Enhance Risk Management
The freedom to pick your grid strategy allows you to control the risk/reward level more actively than in most other types of trading. You may use a GRID Bot to generate a consistent modest profit with almost little risk (for example, by picking a stablecoin pair like BUSD/USDT), or you may take higher chances for potentially massive rewards (e.g., with a low market cap coin that has high fluctuations)
5. Automated trading
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.
It’s one of the greatest methods for traders looking to take their initial steps towards automation since it can operate on practically any market, in any condition, 24/7, and can be set for almost any timeframe.
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Key things you should know before running a grid bot
Fees are a vital consideration since they constantly have an influence on your trading results. Exchanges with minimal costs, that offer periodic zero-cost events, or give fee refunds that you may obtain as a market-maker, have a significant influence on your grid trading.
Find the best pairs and market circumstances you can and learn how to read the market, look through charts, and acquire a feeling of what you need to search for.
Look for charts with a sideways or modest uptick, but make sure you don’t observe any indications of a long-term downturn.
Look for a pair that has already seen frequent and significant price swings, but that also does not appear to be about to exit your price range anytime soon.
6 Best Crypto Grid Trading Bots
1. KuCoin
Kucoin is a Chinese cryptocurrency exchange that was founded in August 2017. It offers an excellent list of trading pairings. It has been trading in 432 markets over the previous 24 hours, with a total trading volume of $25 million. It also provides a sophisticated API that enables users to create a secure and automated trading strategy.
Fees : 0.1% trading fee for maker and taker.
Price : No subscription fee is needed for the trading bot.
2. Bitsgap
Bitsgap is one of the top bitcoin trading bots that allows you to easily manage your crypto holdings. This tool can evaluate over 10,000 cryptocurrency pairs and choose the coin with the most potential. It allows you to build your bot strategy with only a few mouse clicks.
Price : Pricing plans start at $19/month for the Starter license it caps out for $110/month. Start you free trial here.
3. 3Commas
3Commas is one of the greatest crypto trading bots, allowing you to boost earnings while decreasing losses and dangers. This platform allows you to benefit with little effort. It allows you to build a strategy based on more than 20 trading indicators.
Price : Pricing plans start at $14.5/month for the Starter license and caps out at $49.5/month for the Pro license. Start your free trial here.
4. Pionex
Pionex is the world’s first exchange, offering 12 free trading bots. Users may automate their trade 24 hours a day, seven days a week without having to check the markets. It is one of the largest Binance brokers, aggregating liquidity from Binance and Huobi Global.
Fees : 0.05% trading fee for maker and taker.
Price : No subscription fee is needed for the trading bot.
5. Huobi Global
Huobi is one of the major cryptocurrency exchanges situated in Asia and serving Asian customers, having been in business since 2013. Huobi Worldwide, its global crypto exchange giving an attractive platform to trade cryptocurrency — with extensive support for numerous altcoins and a big range of stablecoins, alongside its own innovation — HUSD, a USD-backed stablecoin — has just undergone some branding changes.
Fees : 0.20% for both takers and makers.
Price : No subscription fee is needed for the trading bot.
6. Cornix
Cornix is a robust automated crypto trading platform that has generated a lot of attention in the cryptocurrency sector. They happen to be one of the largest signal provider marketplaces in the industry.
From their wide range of tools including autotrading, multiple bots such as DCA, Grid and TradingView, to their signal services and interactive and full service trading terminal, Cornix provides the best for their customers.
It currently operates via API connection to nearly ten of the largest and most reputable cryptocurrency exchanges.
Cornix’s streamlined platform with a powerful and innovative UI, attracts traders from all backgrounds and experiences and their customer centric support turns them into life-long loyal customers.
7. Altrady
Altrady’s unique automated crypto trading tools have thousands of traders using it every day to maximize returns by automating their trades. The company offers several types of bots, including GRID and SIGNAL Bots that provide experienced traders with an easy way for them to take advantage in fast-paced markets without having any knowledge or skill set on hand.
Altrady GRID Bot with Trailing Up and Down
The Altrady GRID Bot is the perfect tool for traders who want to take advantage of both up and down market trends. With it, you can specify an upper price limit as well as lower one so your trades will always be safe even if there’s a huge move in either direction! You also have Take Profit and Stop loss available which makes trading easier than ever before.
Altrady Signal Bot with TradingView Webhook or Crypto Base Scanner Signal
Signal bots are a great way to get in on the action with minimal effort. Simply configure your entry and exit settings, then let this bot do all of the work for you!
In order to use the Signal bot with custom signals, you will have to configure a signal bot with webhook
Altrady offers the complete toolset for every style of crypto trading:
- Trade on multiple exchanges and exchange accounts
- More than one account on a single exchange
- Real time break-even calculation
- Offline price and order alerts
- Visual trade feedback on the chart
- Unique integrated market scanners
- Trade automation with take profit and stop loss
- Signal bots with tradingview webhook or Crypto Base Scanner signals
- Grid bots with trailing up and down
- Portfolio management with subaccounts
- Trading analytics
Worth mentioning that they are continuously improving their set of features, and on their short roadmap Q3-Q4 of 2022, they will add:
- New mobile app
- Portfolio with external wallet support
- Dex integration
- Paper trading
Pricing- Altrady pricing offers three subscription levels, Basic, Essential & Premium. You can also choose crypto trading subscription for 14 days free of charge.
What Could Go Wrong With Grid Trading Bot?
Scenario 1 : If prices go above your range, the grid bot would’ve sold all the position & you won’t be able to benefit from the rising price. In this case, it would’ve been better to just buy & hold.
Scenario 2 : If prices go below your range, It’ll use all the funds to buy the coin & will generate losses as the prices go below your range. In this case, even the best grid bot in the world wouldn’t make profits easily.
Best Stratergy For Grid Trading Bot?
According to KuCoin’s article,
Actually, the profits from Grid Trading consists of two parts: grid profits and floating returns. The grid profits will always be positive as it is the returns from Buy Low and Sell High. This part is also our main source of income when executing Grid Trading. Floating returns might be both positive and negative as it is decided by the price changes of the token chosen. If you believe that the token price will gradually go up in the long turn, the floating return will also be positive. This also teaches us that choosing a token whose price may recently go down for grid trading is not that smart.
As all grid traders are focusing more on the grid profits, here are some ways to increase this part of earnings:
A reasonable starting price: You’d better enter the market at a relatively low price as the decline of token price will result in floating losses.
A reasonable price range: If the price range is too vast, your funds won’t be effectively utilized, while when it’s too small, even small price fluctuations can drive the bot to leave the range.
A reasonable number of grid: When the grid is too tight, the profits in a single grid will be quite low, barely covering the trading fee in the worst case; but when set too wide, the funds cannot be fully utilized.
So all in all, a smart grid trader will set up a reasonable grid that maximizes fund utilization based on historical volatility, their own funds, and trading costs.
Conclusion
Grid trading is unaffected by human emotions and is entirely determined by code. Grid trading will create orders at progressively increasing and dropping prices to profit from market volatility by understanding market dynamics. Individual investors will profit from the market’s price disparity as a result.
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Also read, Cryptocurrency Trading Bots: An Extensive Guide
Disclaimer — This blog contains product affiliate links. We may receive a commission if you make a purchase after clicking on one of these links. There might be paid endorsements in this article.
Also Read
- Pionex Review
- Bitsgap Review
- Kucoin Review
- 3Commas Review
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- Crypto Telegram Signals | Crypto Trading Bot
