[Tutorial] How to Setup Your Grid Trading Bot & Capitalize on Market Volatility?
“As the Grid Bot can think and act like a human and help traders profit even while they are asleep, they no longer have to worry about missing the market, ” said Du Jun, Co-Founder of Huobi.
Markets trend about 30% of the time, leaving the remaining 70% for range-bound market conditions. A challenge then arises around how a range-bound strategy can be implemented during the times when a market is not trending.
Last week, Huobi Global unveiled a trading bot function on its mobile app that will enable investors to capitalize on price volatility in the cryptocurrency market. The trading bot allows users to place buy and sell orders at certain regular intervals above and below the price of a particular asset, so constant profit can be achieved.
“Buy high and sell low” is a common profit-making practice for new traders. The new grid trading bot enables traders to set a strategy and control their positions. Once parameters have been set, the system will automatically execute “buy low” and “sell high” within a set price range. Users will therefore be able to obtain profits even if not actively monitoring market prices. Moreover, trading stable-coin pairs, such as USDC/USDT and USDC/HUSD, will allow investors to capitalize on even minute fluctuations.
Assuming the current price of BTC stands at 40,000 USDT. Huobi user Sarah enables the trading bot function and sets a range of 30,000 USDT — 50,000 USDT. She then sets the number of grids to 4 and the width of each grid at 5,000 USDT. If the price falls below 40,000 USDT, the grid bot will automatically buy until the price breaks 30,000 USDT; conversely, if the price rises above 40,000 USDT, the grid bot will automatically sell until the price breaks 50,000 USDT.
By automatically executing “buy low” and “sell high” functions, it guarantees the selling price will always be higher than the buying price each time a trade is executed. This function helps investors profit from sideways trends while mitigating risks in a volatile market.
🔹Managing Your Grid Bot Efficiently
Step 1: Access the grid trading bot
The bot can be accessed in three ways:
1: Log in to Huobi App and click ‘Trading Bot’ on the homepage.
2: Log in to Huobi App, click “Trade” at the bottom navigation bar, then click “Trading Bot” on the upper right.
3: Log in to Huobi App, click “Trade” at the bottom navigation bar and then click “Copy” to enter the grid bot page.
🔹Step 2: Start your strategy
Once you enter the Trading Bot page, you will see the top 20 strategies based on a 7-day APY, total P/L, or P/L. You can simply click the [Free copy] button to follow a strategy. If the token pairs you are interested in are not listed, you can use the “Search” function to find one or click the “Filter” icon to filter the trading pairs you are targeting.
There are two modes for following others’ strategies. What are they and how do we use them? Let’s take a closer look.
Novices are suggested to use Copy Mode because it carries out back-tests based on the recent data and calculates the grid parameters, including upper price limit, lower price limit, and numbers of grids for the highest yield. Under this mode, the only thing you need to do is to ensure that the amount you entered should be no less than the minimum amount required. Once the amount is decided, click “Run” to set your strategy .
For veterans, a Customize mode might be the better choice. You can decide the parameters based on your judgment and analysis on market trends to gain maximum profit
🔹Step 3: Create Your Strategy
The trading bot also supports individuals to customize their own strategies. In the [Create My Strategy] page, you can select “Spot Grid” or “Futures Grid”, and click [Customize] to create your own strategy. (The grid trading bot is currently only available for spot trading. Support for futures trading will be added soon. )
There are two modes under this function: AI and Customize mode. AI mode is recommended for beginners who have little experience on grid trading, even crypto trading. Seasoned users can use Customize mode to meet their specific needs.
Under AI mode, a back-test will be executed based on the recent data to calculate the grid parameters (upper price limit, lower limit, and numbers of grids) for the highest yield. You will only need to fill the investment amount and ensure it exceeds the minimum amount required.
🔹Customize Your Mode
Under the customize mode, you can adjust the parameters based on your personal judgment.
🔹Step 4: Review Orders
[My Orders] lists all the copied and created strategies for a quick view. You can either click [Running] to see the running strategies or [Closed] to see the ones that have been closed. The basic information of each order such as investment amount, total P/L is also shown below, which is convenient and friendly for you to enhance your experience on creating strategies and make proper adjustments.
🔹Part 5: View Profit /Loss
Entering [My Fund] page, you will see an overview of all your copied and created strategies, including the total amount you have invested in grid trading and the P/L you obtained during the period you selected. Additional functions such as detail analysis will be supported soon.
Huobi Global has officially rolled out a grid trading campaign from 12:00 on May 16 (UTC), users can complete tasks or join grid trading competition to share a 50,000 USDT prize pool.
💰 $50,000 Grid Trading Campaign, click here.
➡️Download the grid trading bot on the Huobi App, click here.
Why Choose Huobi Grid Trading Bot?
🔹1000+ trading pairs are supported by Huobi Grid Bot Trading
🔹Automatically enables when a token is listed on the exchange
🔹 1 USDT is only needed to start trading on grid trading