Are Spot Grid trading bots profitable?


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.

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.

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.

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.

Traders can set multiple buy and sell orders at different points in their grids. In futures grid trading, the bot will buy and sell positions, generating larger profits (or losses!). Futures grid trading is a version of grid trading where traders can use margin and trade bigger positions. With margin trading, traders can borrow funds to take on positions beyond their own capital. Because of these larger positions, traders can generate more profits.

Quadency — Best Trading Bot for Advanced Traders

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.

  • This leads to back testing of all strategies with predefined rules which help in identifying ideal price levels.
  • Full BioSuzanne is a content marketer, writer, and fact-checker.
  • This article is intended to be used and must be used for informational purposes only.
  • Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by to invest, buy, or sell any coins, tokens, or other crypto assets.

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.

What can go wrong with a grid trading bot?

Is ideal for automation due to the fact that all its actions are predetermined and are not related to market behavior. Is easy to understand and use because it does not require complex calculations, observations, or market data research. This method can be used even by inexperienced traders in the cryptocurrency market. Overall, the grid strategy may work well as it is utilizing the only guaranteed market direction — to the right.

grid trading

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 grid trading. 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.

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.


You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle. Forex trading in Australia with Blueberry Markets to enjoy the benefits of grid trading with other technical analysis tools and place successful long and short orders. A one-click strategy for making a profit in quote currency during a sideways move.

grid trading

The bot will place a fixed order grid and will keep printing USDT or another quote currency as long as the price fluctuates in a defined range. Spot grid trading is – as the name suggests – a version of grid trading where traders only take spot trades. Spot trading is a relatively safe way to trade, as you trade solely with your own money. This means you can only buy as much as you can afford, and nothing more. Once you enable the function, the strategy will automatically sell all base coins at market price when the grid is stopped.

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.

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 grid trading strategy.

Understanding Grid Trading

The geometric grid divides the price range from the Lower Price to the Upper Price into the number of grids by equal price ratio. 3.1 If you’re using , simply select the time period for the grid strategy and enter the investment amount. gann fan strategy is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices.

Risk Management in Grid Trading

This buy order price is higher than the current price , so in theory it will be immediately filled. After the 56,000 order is filled, a new sell order will be placed at 60,000 BUSD. When the buy order at 52,000 BUSD is filled, a sell order of 56,000 BUSD will iq option overview be placed accordingly and reaches the 48,000 BUSD grid. As the current price is 50,000 BUSD, the buy order at 48,000 cannot be filled, therefore no orders will be placed at 52,000 BUSD. Similarly, the buy orders at 44,000 and 40,000 BUSD will not be filled.

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.

Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by 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 jurisdiction. Any descriptions of 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.

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.

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 App is subject to jurisdictional limitations. may not offer certain products, features and/or services on the App in certain jurisdictions due to potential or actual regulatory restrictions.