Grid Trading Definition

For this reason, traders typically limit their grid to a certain number of orders, such as five. If the price runs through all the buy orders they exit the trade with a profit. This could be done all at once or via a sell grid starting a target level. The idea behind with-the-trend grid trading is that if the price moves in a sustained direction the position gets bigger to capitalize on it. As the price moves up, more buy orders are triggered resulting in a bigger position. The position gets bigger and more profitable the further the price runs in that direction.

The bot is a no-code rule platform that allows traders to automate their trades without programming. The no-code rules only revolve around if-else-then rules that are easily accessible by anyone regardless of your level of expertise. This sample trade is optimized for the price volatility of Bitcoin for one single day. Traders have to adjust their trading bots daily according to the involved crypto’s performance. Bitcoin seems highly volatile in this chart, with the price fluctuating frequently between 60,200 USDT and 61,400 USDT during the last 12 hours. A grid trader could set a grid with a lower limit of 60,000 USDT and an upper limit of 62,000 USDT to take advantage of this short-term volatility.

• As the upper price is set at 60,000 BUSD, the grid strategy will begin by placing a buy order at 56,000 BUSD.
• Users can set many, or just a few, price levels in the grid, depending on their personal preferences and circumstances.
• When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
• The position gets bigger and more profitable the further the price runs in that direction.

For example, if you create a BTC grid order with no trigger price, a certain percentage of BNB will be immediately bought at the market price for opening the how to use fibonacci. If you set a trigger price, the system will wait for the market price to hit the trigger before buying BNB at the set price. Then, set the grid parameters, including the upper and lower price, grid number, and the coin to invest. You may also set up a trigger price, a stop-loss price, and a take-profit price under [Advanced ]. You can create a grid trading strategy by setting up your own parameters, or select one of the preset parameters from to start.

A trading bot isn’t a golden pill you take, but a reliable tool to increase your trading capacity and maximize yields if used correctly. Whether the bot will work or not depends on one simple criteria — it’s code. If the technical and analytical teams work well, the bot can bring tangible results. Unlike many less reliable automated trading software providers, the 3Commas teams put significant effort to develop, test and improve the logic set behind bots. As a result, each 3Commas user can be sure that trading bots developed by 3Commas work well. Manual Mode is designed to set the grid parameters, including upper/ lower limit, grid number, and invested digital assets, manually.

Can I make money with Grid Trading Bot?

If a trader follows the latest news and re-configures their grid daily, this strategy can be quite profitable. Sideways price action is why grid trading is popular in foreign exchange markets. In forex currency trading, the prices tend to go sideways for years. For instance, the US dollar’s value has remained at 85% of the Euro’s value for over a decade. For example, if the price of Bitcoin is $60,000, a trader could set a lower limit of $59,000 and an upper limit of $61,000. The area between these two limits is their “grid.” Once the price drops to $59,000, a buy order is executed, and when it rises to $61,000, a sell order is executed.

For new traders, this web-based platform provides various trading strategies and templates to pick from. This strategy implies your trading bot will automatically buy and sell crypto on the spot market. The bot uses a predefined logic set to place orders in specified intervals and price ranges. A grid bot is a powerful trading bot with artificial intelligence , which has begun to be in active demand among traders who use the https://traderoom.info/ strategy.

Our GRID bot requires very little attention from you as it is able to move the order grid following the price in both directions so that the bot can stay active no matter what. The number of orders you have in the strategy has reached the maximum number you can place for that trading pair. The trading pair of your strategy is delisted or will be delisted soon.

Start your crypto journey

If you’re an advanced trader with coding experience in Python, you can use their code editor to create your advanced strategy. Huobi is another reliable exchange following the common trade — to create internal bots that can help you to automate your trading activities free of charge. Even though the bot might have the less-risky strategies, it still yields higher risks due to the leverage option. Users can set up the bot to trade automatically 24/7 while making use of the algorithmic and social trading simultaneously. However, the pricing options are quite expensive compared to the market’s average.

Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your javascript image manipulation jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation. An exit point is the price at which a trader closes their long or short position to realize a profit or loss.

Do I need to program my own grid trading bot?

The bot will use two currencies of the pair (e.g. BTC / USDT) for placing limit orders for buying and selling and will make a profit in one currency. There are various crypto grid trading platforms – all with unique features. Today, we look at the four popular ones, highlighting the key differences among them.

The price structure of this strategy will be placed at 60,000 BUSD, 56,000 BUSD, 52,000 BUSD, 48,000 BUSD, 44,000 BUSD, and 40,000 BUSD according to the parameters you set. If you have both BTC and BNB in your Spot Wallet, you can also choose to invest in BTC+BNB to avoid the additional expense (e.g. transaction fees) incurred when buying BNB. For example, if you chose to invest by BTC, the strategy will only use BTC from your Spot Wallet. If you choose to invest by BTC+BNB, the strategy will use both BTC and BNB from your Spot Wallet. Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions.

Ultimately, the strategy is most profitable if the price runs in a sustained direction. The price oscillating back and forth typically doesn’t produce good results. Ultimately the trader must determine when to end the grid, exit the trades, and realize the profits. Otherwise, the price could reverse and those profits will disappear. While losses are controlled by the sell orders, also equally spaced, by the time those orders are reached the position could have gone from profitable to losing money. The technique is best executed in a sideways market without massive price fluctuations.

Start trading forex with the grid trading strategy today

Let’s analyze key market players to understand which grid bot might be a good fit for your day-to-day trading activities. Read on to grasp the core automated trading topic and learn more about the best algorithm trading software providers available. This trade could open four buy orders and four sell orders for this grid, as we set the grid number to eight. However, the price might not dip below our buy orders, and we could end up with only two open orders on the trade. We now have to decide on eight automatic buy and sell limit orders because we chose a grid number of eight. Because the price here will fluctuate between 60,000 USDT and 62,000 USDT, we can adjust our grid accordingly.

Are Grid Trading Bots Good?

Today, we discuss grid trading bots and how you can use them to your advantage. However, if you increase your upper limit to 700 BUSD, this strategy’s grid price points would be 700, 580, 460, 340, 220, 100 BUSD. The second-highest grid price will now be higher than the current market price , you will then be able to place a dual crypto investment strategy. When a buy order is filled, a sell order will be placed on the grid above it. As the upper price is set at 60,000 BUSD, the grid strategy will begin by placing a buy order at 56,000 BUSD.

Your grid creation might fail if there is insufficient balance in your Spot Wallet. Please note that the frozen assets from other open orders cannot be used to place new orders. You can cancel your open orders to utilize your available assets, or adjust the number of grids to reduce the investment amount required to open orders. The system will calculate the minimum investment amount required based on the grid number and coin you selected. Autotrading is a trading plan based on buy and sell orders that are automatically placed based on an underlying system or program. You should keep your general trading account separately from the bot and prepare your exchange account accordingly to avoid mishaps.

Why Use Grid Trading Bots?

Hundreds of different trading strategies can be executed in grid trading based on the number of grids, time charts, and crypto trends. Grid trading is a trading strategy that takes advantage of crypto price movement by placing strategic limit buy and sell orders. Grid traders set lower and upper limits in a grid where they execute buy and sell orders.

GRID trading bot

The platform offers you a wide range of trading bots to pick from, including a Grid bot. While creating a bot, you can select the strategy, exchange, trading pair, investment, and of course set key parameters like and . In each grid trade, a trader must select one lower limit and one upper limit manually. These orders are automatically executed by the trading botat certain price intervals. Inside the grid, they have at least one buy order and one sell order, but they can set as many additional orders as they want.