Crypto Grid Trading Automated Strategies 101

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crypto grid trading

Automate Your Strategy and Take it to a Whole New Level with Crypto Grid Trading

If you are a trader, then you may have heard the term ‘Crypto Grid Trading,’ or you may be interested in the idea of a ‘grid trading strategy’ for crypto.

It’s safe to say crypto grid trading is one of the most popular trading strategies used in automated cryptocurrency trading — as it consistently provides an easy understanding of the technical core dealings of the crypto market.

The dealings range from buy/sell orders, implementing price actions and entry/exit points.

Crypto trading can seem like an impenetrable sphere full of jargon and complex maths. But the reality is that anyone can get started easily with an automated crypto trading bot.

When you’re just starting, it’s best to use a ready-made strategy, as they will have included a risk management method to help you maximize your profits.

Automated trading strategies can offer a simple, effective, and easy-to-use entry point into the world of crypto trading, allowing you to understand the process better and grow your knowledge of the market.

There are crypto trading bots everywhere, but let me ask you something: What is a crypto grid bot? Why is it useful? How do you make money with it?

Keep reading, and you’ll discover tips to earn crypto with grid trading and the best-automated strategy to profit (stepGrid) now available in the latest Gunbot ONE limited edition.

What is Crypto Grid Trading

Crypto grid trading is a trading strategy that takes advantage of the cryptocurrency price movement by placing strategic positions (above and below the current market price), thereby “locking” profits as the market fluctuates.

This strategy offers traders the confidence to make straightforward and specific trading decisions.

The crypto market is volatile and requires enough confidence to make effective decisions instantly. By waiting a little longer, it may cost you a great deal of profit.

Crypto grid trading prevents you from the pitfalls associated with making slow trade moves, and at the same time, will enhance your trading skills. Therefore, factors like speed and precision are what automated grid trading brings.

Most importantly, since crypto grid trading is automated, it removes FOMO, greed, and all forms of human emotions attached to manual trading.

However, as much as automated grid trading offers a lot of potential profits to investors if you don’t know how it works or some technical tips, it will leave you frustrated.

This piece will give you detailed tips on playing the cards in your favor to increase your odds of substantial profit with your crypto grid trading bot.

Go for a Reliable Crypto Trading Bot

reliable trading bot

It’s essential to know that using the grid bot strategy is entirely automated. Due to the meteoric rise and fall of market prices, it is impossible to execute this manually.

And since this process is automatic, you don’t require the technical knowledge to predict market patterns. What you need is a crypto grid trading bot.

There are hundreds of trading software to choose from out there. However, you need specific features in a bot to execute your grid trading system effectively. It is pretty hard to see which one is the best day trading software package without giving the bot a try.

While an automated bot’s reputation—the past performance of the robots over a reasonable time is a must, the option of modifying some features of the bot to suit your taste is preferred.

All bots are not built the same, and if you’re not going for a highly secure cloud trading bot, you do not want to get a platform that doesn’t function on all the operating systems.

Going for a platform that supports all major operating systems allows you to access your trades from Linux, Mac, or Windows, depending on the device you are using.

With your strategies and settings installed on your local machine, compatible with all systems — this will prove very flexible.

Your bot should be able to support numerous trading pairs, several crypto exchanges, and coins. Therefore, finding a crypto trader bot that can accommodate all the different coins offered by major crypto exchanges can be more helpful.

A full-stacked crypto bot will work great for a spontaneous kind of trader. Other vital features that could be helpful are advanced settings, price trailing, and real-time and historical backtesting.

Gunbot seamlessly embodies these features by trying out a few bots, making it the most suitable bot for crypto grid trading. Gunbot has a track record of being reliable as it is one of the leading crypto bots in the market today.

Gunbot is a high-tech algorithmic trading platform that includes a near-infinite number of unique trading styles. These styles are based on a constantly changing series of customizable parameters and settings.

Its diversity means that it can fit any trader, ranging from beginners to experts.

You can always earn significant profits with Gunbot. Just make sure you’ve mastered the basics and its advanced working principles. There are helpful learning resources in Gunbot School to guide you on learning the settings and tailor them to your taste.

Its pricing is affordable, and the software-based platform offers you a lifetime license with free subsequent updates.

Crypto Grid Trading on Ranging Sideways Market

The critical point for trading a sideways market is finding a crypto market trapped in a sideways trading range or an up-trending or down-trending channel on the chart.

When observing from the chart, you must distinguish some clear support and resistance levels that are boundaries of the up-trend or down-trend.

Knowing how to trade in sideways markets is an effective trade strategy to benefit from crypto grid trading because the markets don’t always trend in a given direction.

Among several ways to earn a constant profit, trading sideways gives you access to trade diversification—where using established grid trading strategies can help lower overall risk in trading the market.

Since the crypto market doesn’t move in a lucid trend— there is often an abundance of viable trade setups in the trading ranges that result in price swings between two identified price levels – support and resistance – to trade.

Usually, these two price levels are formed due to two substantial price levels. Establishing these positions sounds simple, but the crypto market comes with many surprises. The price might break out of the support or resistance boundary anytime.

Therefore, skills to respond quickly and set your bot correctly are always critical to earning from this strategy.

For example, say Binance coin (BNB) is trading between $562 and $568. Every time it hits $562, it goes up. Every time it hits $568, it goes down. It is trending sideways.

How do you take advantage of this? The bot starts by buying the $556 ask for $.5, and selling the $565 bid for $2. This gives us a $1.5 instant profit. Now the bot has the choice to sell BNB at $565 if it goes to $545 or lower. Because this crypto asset keeps bouncing off $562, the risk is shallow.

Sideways markets are always harder to trade than trending markets. Trying to hit every swing can be difficult. Instead of predicting the movements, you can make money in a sideways market.

Just look for a feasible sideway market that has all the soothing price levels — set up your bot and deploy your tailored strategy on it.

A grid bot helps you control your risk, earns you steady profits, and can stop you from experiencing severe account loss.

Larger Price Range

As much as a crypto grid trading bot is effective in trading sideways markets, setting up a wide price range for your bot is essential.

There are cases where the current prices you are reading go out of the price range unexpectedly; when this happens, the bot will stop trading, resulting in lost opportunities to make profits.

When setting up an extensive price range, you’re automatically extending the time of your bot to earn more profits — by limiting the likelihood of the prices leaving the field.

Gunbot allows you to modify price levels to a more extensive range before placing the grid order. For example, to maximize your profit, if the current ETH-USDT price is $4000, you can predict the price will decrease when it gets above $4500.

In this scenario, to keep your bot running for decent profits, you can set the price to $4500. Giving your bot significant price levels will earn you profit and make a perfect low-risk long-term strategy.

Crypto Grid Trading Diversification

crypto diversification

Diversification is the basic rule of trading crypto. You don’t want to invest your capital only on BTC or any crypto asset that directly follows its trend.

Diversification is a concept based on the tried-and-true method of using diversification of securities, or in this approach – automated grid trading, to reduce the chances of zero account.

Being too weighted in a given trading pair or investment approach can leave you vulnerable to extreme consequences of a reversal of profit if the market should turn against you.

Using diversification with your grid trading strategy can help you avoid a loss in one or more trading pairs while the rest of your open trades remain strong and bring a steady income.

Implementing diversification in your grid trading strategy, you can rest assured your transactions will perform differently according to the market’s dynamics at the time.

Gunbot supports almost unlimited trading exchanges, and you can trade more than one trading pair simultaneously. This feature allows you to diversify your portfolio and make steady money.

For example, by trading multiple crypto pairs simultaneously, you can increase your odds, as long as the pairs are significantly different. For instance, suppose that you use trade BNB-USDT in which the average monthly return is around 12%.

By trading other altcoins simultaneously, all of which have different price trajectories, you expect other returns on each of them.

Therefore, if you trade multiple crypto assets for a specific time, you can use Gunbot— Crypto Grid Trading strategy to reap some significant benefit from the volatility between them.

Plan Profit per Grid

The settings you employ for your crypto grid strategy typically determine how profitable it will turn out.

Planning your profit per grid makes you accountable and significantly influences the risk/reward level. Your bot divides your price range into a series of buy and sells grids.

The bot will execute trades as the crypto pair rises within your extended range. As long as the price levels stay between your settings, the bot continues to make you profits.

However, how do you know which of your bot is making enough profit for you? Now, which profit is good enough.

The idea of having a firmly held rule of making 2% can be deceptive. No one has control over the market, so the idea is faux.

However, for a successful grid bot, always aim for at least 0.3% profit per grid. Even if it takes a bit longer to get started, the bot will work and will earn you money as long as you are patient.

Also, you must understand profit per grid settings. A small grid price size recovers a little. You will make little profits while making a ton of trades — however, it might have stopped trading if it has fallen out of your grid’s price levels if you’re not making profits in a long time. That’s a major setback of a small price range grid.

Manage Your Risk

Since crypto grid bot trading is automated, the speed and frequency of the transaction mean that it can be straightforward to lose control of your trade. In place of this, you have to find some way to manage your risks to avoid losing too much money.

Without a risk management strategy, you are more likely to lose money.

Grid traders also have to choose a crypto exchange wisely to avoid paying large commissions for the hundreds of trades they make. Kucoin offers an ideal platform for grid trading, with low trading fees when you use their token to pay for the trading fees.

You must determine how much you want to risk per grid. You can allocate a certain percentage of your account size. Let’s say your trading capital is $5000, then the maximum loss you’ll tolerate on trade could be around $50.

To ensure that your losses do not exceed this level, you should set up your bot to a significant stop-loss order — which will automatically close your position when the price falls below the specified level.

If you’re using Gunbot, you can take advantage of the stepGrid strategy and use DCA (dollar-cost average) as a risk management strategy. Read more about it here.

gunbot stepGrid strategy

Conclusion

The most significant advantage of grid trading is that it requires insignificant forecasting of the market direction. You don’t have to spend time on technical analysis — it is easily automated.

Like most crypto trading strategies, grid bot trading needs to be traded in the appropriate market conditions. You can make steady profits by selling the correct currency pairs, applying well-planned grid sizes, and reasonable risk and money management.

The bot requires you to risk small amounts of your capital to generate a reasonable return. It is not suitable for impatient crypto traders.

With Gunbot’s advanced features like backtesting and trailing, you can be confident that you’re in safe hands.

Whether you’re interested in cryptocurrency trading or not, there’s no denying the benefits of having a bot at your disposal — and a lot of people are making serious money from it right now.

However, if you’re intimidated by the enormous technicalities of the subject, then fear not! Gunbot ONE comes with a top-notch trading strategy that can automatically extract profit from a crypto grid. Please give it a go and experience how to make your money work for you while you sleep.

But that’s not all. You can try the new Gunbot ONE edition now for only $99. And guess what? It comes with a winning crypto grid trading strategy: stepGrid. Yes, you can buy, download and start using your Guntbot stepGrid method in no time!

Once you click the” start trading” button, your Gunbot ONE Limited Edition will instantly start trading in your selected exchange with your crypto pair.

Get your hands on the new Gunbot One now so that you can profit.

gunbot one special offer