Why Grid Trading Bots are the Best Option to Perform Trades in 2023?
Automated trading has become an increasingly popular method of profiting from the crypto market volatility. The best crypto trading terminals like TrailingCrypto provides a range of powerful and cutting-edge trading bot strategies which perform different functions without any hassles. Among several trading strategies, grid trading strategies and futures grid bots are gaining huge popularity among traders. This bot automatically buys and sells futures contracts at predefined price levels.
Grid trading is a popular trading strategy which involves placing automated buy and sell orders to earn profits from market volatility. This trading automates trade execution by utilizing grid trading bots. Firstly, the grid bot places a buy order, and whenever a buy order is completed, the bot immediately places an order to sell at a higher grid level and vice versa. When trading with a grid bot, a sell order is placed for every buy order.
The best crypto traders consider Tradingview automated trading platform and TrailingCrypto to perform automated trading. These are the cloud-based trading platform supporting multiple features, unique research analysis and trading capabilities. These platforms let traders build trading bots and perform trades profitably. Grid trading is a time-tested strategy which has become quite popular among traders to manage risks in the highly volatile trading market. These platforms support this strategy and grid trading bots are making the lives of traders easier by executing buy and sell orders automatically.
Do you want to start trading using grid bots? Get ready to choose the right crypto trading platform and the bot to buy and sell crypto on your behalf.
How to set up a grid trading bot?
To set up a grid bot, you have to specify an access point, trading pair, take profit percentage, volume of first and extra orders, etc. Grid trading is a popular trading strategy that involves placing orders above and below a set price using the price grid of orders. Here the price grid consists of orders at incrementally increasing and decreasing prices.
For example, a trader may set buy orders at every $1000 below the current market price of any stock, say ABC, and sell orders at every $1000 above ABC’s current price. The grid trading bot automatically buys when the price falls to the predetermined level and again if the price of the asset drops by another $1000. The reverse occurs when the price of ABC starts to climb.
Grid trading bots rely on this trading strategy which works amazingly in the sideways market. The more frequent there are fluctuations in prices in the market, the more profitable will the trading strategy be. While using this trading strategy, the crypto traders set lower and upper limits on the grid where they execute buy and sell orders. If the price of an asset drops below the lower limit, a buy order will be executed, and vice versa.
In each grid, the trader has to set the price of the asset manually for setting upper and lower limits. Binance trading bots also work on this trading strategy and whenever deployed properly, they will help you earn optimal gains. The best trading platform provides Tradingview alerts to traders to help them with order execution.
Setting up grid trading bot
To get started, simply follow the below steps:
· Open the trading platform app or website, say TrailingCrypto and select the trade option
· Navigate to the bot section
· Create a bot by selecting the option Grid trading bot
· Choose cryptocurrency pair and configure the required and relevant parameters
· Once completed, the bot will be created successfully
How grid bot works?
Let’s understand about grid trading bot with another example, consider the BTC/USDT trading pair with an upper price of 100,000 USDT and a lower price of 10,000 USDT. Once, you have set the Grid Trading Bot successfully at the best crypto trading platform, it will initiate trades by buying an asset at a specified percentage at the current market price and placing sell orders above it. At the same time, the Grid Trading Bot will allocate a portion of USDT to place buy orders below the current price. Here, the bot will execute “buy low and sell high” trades continuously within the designated price range, resulting in the buildup of frequent grid profits.
If the market price rises above 100,000 USDT or drops below 10,000 USDT, the Grid Trading strategy will be suspended temporarily. Once the price returns within the specified price range, the Grid Trading strategy will resume its operations.
Future of grid trading bots in crypto market
In the current scenario of grid bot trading in the cryptocurrency market, spot and futures grid trading bots are popular and considered by crypto traders for automated trading. While these bots offer huge advantages like reduced human error and great potential to earn profits from market volatility, there are even some downsides to consider, like the need for monitoring and the risk of losses.
The future of grid trading bots in the crypto sphere is expected to be improved by emerging market trends and technologies like AI and machine learning. By leveraging such technological advancements, the traders will get advantage from the improved bot parameters enabling greater profitability as per market conditions.
TrailingCrypto grid trading bots offer all essential features making them a top choice for the crypto trader who wants to earn. This includes advanced settings, multiple trading pairs, customized settings, high liquidity, and more. The traders can choose grid bots from a variety of options like futures grid, spot grid, infinity grid, etc.
Conclusion
So, what this concludes? This concludes the huge benefits of grid trading strategy and how it works along with its benefits and relevant strategies. Considering grid trading from TrailingCrypto is profitable in the ranging environments. But, keep one thing in mind that before investing your hard-earned money in these bots or strategies; make sure to research the market well. Never invest more than you could afford to lose.
This trading strategy works great whenever you customize the strategy as per the current market trends and keeps yourself updated on market volatility. Make sure to consider Tradingview automated trading feature as this platform integrates market information and keeps you updated.
