How Grid Trading Strategy is better in the Long Run with HODL+ Strategy?

I am not a regular trader, but I love to do experiments with different crypto trading strategies. Usually, I trade on TrailingCrypto and make money using grid bots, rebalancing bots, etc. If you are using crypto bots in your trading strategy, then this article is meant for you and may be helpful! But, make sure to do your own research before experimenting.

Buying and selling crypto assets is fun for me. Usually, I never put much cash in crypto trading. I left my bots running for 2–3 months, they just kept trading, and I have earned good profits like 10–15% without doing anything. I am lucky to earn from most of my cryptos. But, there are times when I lose with trading on highly risky coins. Today, the whole crypto market is dominated by Binance. My recent attempt was using grid trading strategies on Binance via TrailingCrypto! This is a free feature offered by this exchange.

Crypto market is facing a huge downfall and this is the right time to invest in the crypto market as in the longer term you will surely earn profit. Still, this is my opinion and therefore, I suggest you to research well before experimenting. There is no moonbot-like feature on Binance, so I created HODL+ (Hold on for Dear Life) strategy to earn a little from my holdings to put my profit back to buy more crypto assets. In the HODL strategy, investors hold their assets for longer periods until they benefit from the long-term value appreciation.

Today, I am going to discuss about grid trading strategy and Binance grid trading bots. And, you will see that you will never lose your crypto assets with grid strategy, as it allows you to “buy low and sell high.” It will keep trading for you to earn as long as you are in range. Let’s understand about this strategy:

What is grid trading and why is it beneficial for crypto traders in 2023?

We all know that grid trading is not new, and most of traders use it for forex trading. Grid trading is all about earning profits from the market fluctuations. Binance grid trading bots work great in the perpetual futures market.

Binance offers 3 modes of grid trading strategy i.e. long, short, and neutral. Binance spot market grid bot strategy is the latest addition by Binance.

· Grid trading is a quantitative strategy which starts with setting a lower and upper limit with a preconfigured profit-taking range. Here, the grid trading bot automates the buying and selling process for profits.

· To start with Binance grid trading bots, make sure that you have an account on the Binance exchange. You can execute this strategy either on mobile or desktop. To start with, login to Binance account, click on trade, and then strategy trading. Select the pair, set parameters, and now the bot will start trading on your behalf.

· Grid trading is good for sideways market!

· Third-party trading bots have many advanced features and TrailingCrypto is one such platform which allows you to trade on multiple exchanges via making use of APIs.

Why I am happy with automated trade bot services?

· We are human beings who can make errors and can’t trade 24 hours a day. Isn’t it? So, automated trading is of great help.

· To use trading bots, you need to set some rules and strategies for it. And, if you are an expert, you can set them according to your research. But, if you are a beginner, go ahead with the preset strategies and automate them.

· Well, coding on your own could be risky and may introduce you to some bugs/errors. So, make sure to choose bots with some preset strategies from the best exchanges

· Additionally, choosing third-party trade bots help you to trade smartly as they are equipped with the best features

· Choosing automated trading feature and grid bots is good option for the lazy traders like me. There are system alerts when it is about to get out of range. Otherwise, you may set one for yourself at the last sell/buy range.

A quick guide on what you can learn from using grid trading bots on your favorite exchange

These are some factors that I have shortlisted after using grid bots and grid trading strategies while holding my assets. Let’s have a look at these:

· You must not use grid bot on that token pair which you wouldn’t have HODL. This strategy is not good for short-term trading. HODL works great on long-term strategies and may take more than 3–6 months. You can choose moonboot on some exchanges rather than using grid bot feature on Binance.

· This strategy doesn’t make you rich quickly. This is not a single strategy in the crypto sphere that you should be aware of. This strategy works great during the boring horizontal market. If you have used this strategy in the right way, then this could help you earn more than 20% profit within a year.

· If you are using Binance grid trading bots, make sure to buy some BNB so as to reduce the trading fees on the exchange. If you have signed up forBinance without any referrals, you are missing out on trading fees profits. But this feature is for the new accounts.

· Grid trading strategy works well for volatile pairs. Make sure to check the trade volume and range. You can spread your capital in small amounts. The bot will make multiple transactions to let you earn more on your holdings.

· Make sure to research well before using this strategy. Take a look at what other people are saying about this strategy. Study the copy trading parameters used by traders. Check out the charts and copy them to your manual settings. Do experiments and start with smaller amounts.

· Set the number of grids according to the grid profit range percentage. You can set up to 150 grids, but the profit range might be small here.

· Take a look at the automatic values recommended by the Binance grid trading bots. Decide if you want to run this strategy for long or short.

· Get good at starting and stopping the bot. You must make sure to track the bot’s performance. If you have messed up with the settings, don’t hang with it. Rather, stop the bot, reset the parameters, and start again.

· I am using HODL+ strategy here, which is all about when the price falls below your range; you are actually holding the full amount in crypto. But if it exceeds your range, you will be left with all stable coins. But if your start price is mid/low in the range, you will make some gains together with the grid profit.

· Another thing which I have learned from this strategy is that there is no auto-compounding feature. You can do that manually too. When you have accumulated enough grid profit, end the bot and start again with similar settings. And in case, you are using this for HODL+, make sure to use grid profit to buy more of the crypto which you are holding.

· I am using Binance grid trading bots via TrailingCrypto to earn profits. Using HODL while hoping to get more cryptos like BTC/ETH.

So, make sure to have your own strategy and pick the coins you want to collect, and then HODL!

Risks of using grid bots

Well, no strategy is perfect. Rather, you can set your own strategy after studying the market. Keeping your cryptos on a particular exchange for a longer time could be risky. Binance is one of the biggest exchanges, but nothing is permanent.

So, there is no guarantee/warranty of any kind! This article is all about my personal experience and not a financial advice. Read more about grid bots before investing anywhere.