Only in 10 days that I earned +10.52% profit by using Grid Trading Bot of BitUniverse.
I choose AION/BTC which is a pair of coins I’ve recently studied and found that it is quite suitable with transaction principle of Grid Bot.
Early of 2019, from 03 Feb to 12 Feb, Grid Bot has performed 138 transactions with profit 9.77% in BTC.
After checking back assets in the portfolio, its total profit reached 10.52% (from $290.80 to $321.38).
For me, this is a great achievement when trading in an almost full-time Sideway market. Moreover, I did not take much time because I had complete support from Bot.
Within the scope of the article, I will share my experiences when using Grid Bot.
Don’t forget to read carefully and bookmark this article as setting Bot transaction with stable profit is not easy!
However, when you already know how to do, it will bring great effect and save you a great deal of time.
- Make money with Grid Trading Bot in Coin Sideway market
- “Gid transaction” principle of Grid Trading Bot
- 5 experiences in trading coin with Grid Trading
Make money with Grid Trading Bot in Coin Sideway market
I see Grid Trading Bot as an alternative solution in the moment of Coin Sideway market
Since Dec 2018, Bitcoin price has not changed much. Bitcoin Sideway price was in the range of $3,150 to $4,200.
During the middle of 2019 when Bitcoin fluctuated strongly, Grid Trading was not the optimal trading method. However, Grid still proved very effective in the short term. Especially effective for Altcoin which varied in a large margin in the short term. It is possible to make a big profit 3-4 times higher than the period we witnessed less variation of Bitcoin at the beginning of the year.
Instead of choosing to become HODLer, I decided to explore the alternative with the bot Grid Trading for Sideway market.
Grid Trading Bot will allow you to make a big profit from sideway as well as quickly trade volatile coins.
For those who do not know: ONE is a token of Harmony, which was listed on platform after IEO on Binance. The time when it is just listed on the platform is a sensitive one as it varies dramatically.
“Gid transaction” principle of Grid Trading Bot
Grid trading Bot is the name of a function in the app BitUniverse.
It allows you to place multiple orders at the same time on the market and you can use bots to trade automatically without having to observe the market often.
Grid Trading Bot allows you to place trading orders continuously above and below the price. From Grid which indicates the trading method of this Bot.
Grid Trading Bot is very suitable for Sideway market because of the feature of fluctuation in small price margin of this market type.
The thicker the grid you set, the more likely you are to make a profit because of the higher matching ability.
Trên hình, các đường màu xanh dương là các mức giá mà mình đặt lệnh Grid Trading Bot đã đặt lệnh mua bán. Còn đường màu vàng là đường đi giả định của giá thị trường.
On the picture, the blue lines show the prices that I ordered Grid Trading Bot to place trade orders. The yellow line is the assumed path of the market price.
- I set up for Grid Bot to start up and buy from price A.
- When the price goes up, Bot will sell the token respectively at price b1, b2, and b3.
- The price peaked at top level X.
- After that, Bot automatically buys back at the price of m3 and m2.
- Finally, the price returns to the original price = A.
Through 5 moves of the market, I sum up interest in 3 orders:
Using bots to trade in a grid model like this, you’ll earn a steady profit in the Sideway market.
The faster the Sideway is, the bigger the amplitude, the more orders are matched, the more profit you earn.
The secret to choosing coin pair to trade with Grid Bot
My first criteria is to find the Sideway pairs to trade. I myself divide options into 4 types as follows:
- Altcoin/Stablecoin (USDT/USDC, …): for this type of pair, I see only the top coins can sideway in long-term, the rest are quite risky.
- Altcoin/BTC – these are the pairs I observe very potential.
- Altcoin/ETH – a large fluctuation range, suitable for grid in the short term (< 1 week)
- Stablecoin/Stablecoin: Grid these pairs earn not high but steady profits and certainly no losses. Can long-term grid.
Each person has a different capital and time fund. Therefore, it is difficult to establish the same way for everyone.
Experience in the next section I share is only my personal opinion after using Grid Bot.
5 experiences in trading coin with Grid Trading
Grid Trading is an effective strategy. However, everything has its weaknesses.
You will not achieve the desired profit if you cannot master Grid Bot. The following are mistakes I made when trade with Grid Bot:
#1: Choose Sideway pair with too small amplitude
On 3rd Feb, I did grid the pair of NEO/USDT. Chart of NEO was quite narrow, going horizontally and big volume. However, its range was too small that made the price hardly reach the grid.
I ran bot Grid in four days (form 3rd to 6th Feb).
The result was only 15 Transactions were matched and the profit earned was only 0.23% (include transaction fees).
#2. No setting for Stop Loss
This time I selected the pair NPXS/ETH. The price range was quite large that in 7 days Grid Trading Bot matched 174 orders and earned 10.96% profit.
However, after that NPXS price plummeted, Grid Bot continued to buy more NPXS. Finally, the price has dropped to below the Low Price level.
And I had to stop Grid Bot and sell off at 0.00000488 ETH.
Final result: profit by 0.6%.
The pair NPXS/ETH is relatively risky because of its pump dump feature. Setting Stop Loss can help ensure the safety for yor investment account.
#3. Set too high Profit per grid
On Binance platform, you can only analyze the index “Amplitude” of the candle to evaluate price fluctuation.
Amplitude is the percentage (%) of the price difference between the lowest and highest price of 1 candle.
The figure above shows the percentage of 1.21% of the ETH/USDT hour candle.
If you set the desired interest of a grid of 1%, you can match average 1 Transaction per hour.
If you set profit per grid too high, the number of matching orders will not be high and so will the profit from Grid Bot.
#4. Transaction fee
Another point you need to note is the transaction fee. Each platform has a way to charge the transaction fee.
For Binance, if using BNB to pay transaction fees, the total cost of buying and selling is 0.15%, while for Huobi, it is 0.4%.
So you need to pay attention to this point to set up a reasonable Grid Bot.
I usually put the grid with per-grid profit from 0.5% to 2% to ensure the best profit.
#5. Number of grid
The more of grids you set, the more that you divide your capital. If the profit per grid is 1%, but you have 10 grids, then you will earn 0.1% on the total investment (not including transaction fees).
I set for the pair BNB/USDT 30 Grids, meaning I split my capital 30 times.
The profit per grid is 1% => The profit on the total amount of money I invest in this grid was (1%)/30 = 0.033%.
Inferring that if 100 orders were matched, I was able to earn only 3.3% profit. As can be seen from the picture, even though it matched 96 Transactions, Grid profit only achieved 2.55%.
Grid Trading Bot will become an extremely effective tool to create profit in this year’s Crypto market.
However, you need to pay attention to the experience I share in this article in order to make the profit maximized:
- Choose a Sideway trading pai rwith an amplitude big enough.
- Always set Stoploss.
- Set a suitable number of grid. Don’t set it too high leading to reducing your total profit. And don’t put it too low as it would be difficult to match order.
- Pay attention to the transaction fee of each platform to set proper Profit Per Grid.
- Volume. This is the minimum requirement of trade coin. You should choose trade pair with enough volume to match orders!
Trading coin with bot is really an interesting experience. The profit depends entirely on the chart you choose and your settings.
If you choose a suitable trade pair and set it correctly, tour job then is to let the bot run automatically and check your profits daily. When the net profit is large enough, even if you touch the stop loss, you still have a profit.
Here are my team’s achievements when using Grid Trading Bot.
I am trying to use a new Bot and its settings for other coin pairs. After use, I will share you the experiences for your reference. Remember to keep track of my next articles on EzDigital.net for more information! Keep in touch!