Crypto trading market is full of profitable trading opportunities. However, sometimes you may miss great chances to earn from the volatile markets just because you were away from the system or unable to watch the market for any reason. So, which trading strategy can let you perform better?
Well, grid trading strategy is an effective strategy which can let you earn massive income by increasing your profits and limiting losses. And, Binance trading bots are the best option for your trading success via following the grid trading strategy. Grid trading bots make the life of traders easier as you don’t need to create any grid manually. Just configure the bot once, and it will automate the trading process. However, choosing the right grid trading bot is important as well as challenging at the same time. Before moving further, let’s understand the grid trading strategy once:
This is a quantitative trading strategy which involves placing buy and sell orders within a predetermined price range by constructing an automatic grid. This automation helps crypto traders to earn profits even from the smaller price fluctuations in both bearish and bullish markets.
Grid trading bots work on the simple strategy of buying low and selling high. In the grid trading strategy, whenever the price drops to a certain limit, a buy order is executed whereas trading bot will sell an asset whenever the price of the asset rises above the upper limit. This way, the traders can take advantage of the price fluctuations in the crypto trading market.
Let’s understand this with an example:
The price of an asset say, ABC, ranges between $30,000 and $20,000. The seasoned grid trader, Mr. Pale, would set a lower limit slightly below $20,000 and an upper limit slightly above $30,000. When the price dips to the lower limit, the grid bot automatically buys ABC. After a while, when the price of the asset reaches the upper limit (slightly above $30,000), the grid bot unloads the position, generating Mr. Pale earn a decent profit.
Grid trading works well in a competitive market with regular price variations and this further ensures profitability each time the sell price exceeds the buying price during price movements in the market. It works automatically by executing lower purchase orders which further leads to higher sell orders while eliminating the need for market forecasting. To enhance the grid trading earnings, it’s quite important for the traders to consider some factors.
The grid trading bots work on the same strategy and the best crypto trading platforms like Growlonix help traders to play trades smartly via these bots. Grid trading works well on the Binance exchange and Binance trading bot follows this strategy. Before moving further, let’s understand how these bots work:
Best crypto grid trading bots
Grid trading bots help traders to automate the grid trading strategies on major exchanges like Binance. This trading method helps you earn profits from the ups and downs of the asset’s market price. These bots automate the buying and selling of contracts within the defined price range. Once an order is executed, the grid trading bots automatically place a market order at a lower grid.
Grid trading bots are the trading algorithms that attempt to earn profits from price changes in the predefined grid area. The trader is required to set some parameters or limits for the bot to function within the defined range and execute orders accordingly. Growlonix offers the best grid trading bots to traders for Binance and other major exchanges. Binance grid trading bots helps traders to earn profit from the market’s price volatility.
Benefits of using grid trading bots
One of the major benefits of using grid bots is that it allows you to trade systematically. After defining the parameters, the bot will execute the strategy without giving him any second thought. This kind of trading strategy is especially beneficial for the beginners. Let’s have a look at some of the major benefits of considering grid bots:
- A trustworthy trading strategy
Well, grid trading strategy has been around for a longer time and it is a well-defined trading, and quite profitable approach. Experienced and successful traders are following this approach for decades on different marketplaces. Grid bots work on this strategy.
Grid strategy is quite straightforward and easy to understand as there are no sophisticated calculations or any kind of market indicators. Setting up this strategy for newbies in the crypto trading market will be quite easier.
- Enhance risk management
Choosing grid trading bots allows traders to control their risk/reward level more actively than any other kind of trading method. This bot lets traders generate a consistent profit with almost little risk.
- Automates trading
Grid trading is automated and all of its actions are predefined. Using grid trading strategy with a crypto trading bot is considerably easier and efficient than trying to use this strategy manually.
This kind of trading applies the most fundamental trading concept of buying low, selling high, and then earning the difference. Grids can either be set for the short-term to capture profits from minor changes, or for the long-term by selecting a large range, and leaving it for months to gain profit from every larger trend shift.
Grid trading bots are the best options for those looking to take their initial steps towards automation as it lets them trade 24×7.
Important things to consider before running a bot
Grid trading can be incredibly profitable, but it’s important for traders to remember that every range may break eventually. As a trader, you should be prepared for any such situation. Have a plan for when this kind of breakout happens. Make sure to use proper risk management techniques to protect your investments.
Rather than depending on the bot only, one should monitor the market in some way to adapt to the changing environments. Additionally, trading fees is another important factor to consider while running this bot.
The most important grid trading parameters which you need to operate are:
- Stop loss
- Take profit
- Number of grids
- Upper limit
- Lower limit
Crypto grid trading bot Binance will help traders earn profits from the market price volatility. Long Binance grid trading bot will give you better results in an uptrending market while the short grid will perform well in the downtrending market.
As the largest crypto exchange, Binance offers the grid trading feature. This is a unique feature where a certain number of buying and selling orders are placed at the preset intervals below or above the set price. With any Binance grid trading bot at Growlonix, you will get better results and benefit from market conditions without any manual error.
How to start Binance grid bot?
- Firstly, if you don’t have an account on Binance, sign up for this.
- After that, you can easily access the Binance grid bot
- To run the strategy, login to Binance account and click on trade > strategy trading
- Select the pair
- Set parameters
Binance grid bot works well on the Futures market. Growlonix offers the best Binance grid trading bot for traders to trade smartly and profitably on the exchange. Bot trading viaGrowlonix supports different trading methods like grid trading, spot trading, and futures and offers the potential to customize trading strategies. The platform also allows its traders to even copy signals or strategies from expert traders and place trades. To place trades, you simply select a suitable bot and start trading.
Best crypto grid bots 2023
Binance is one of the best exchanges where traders can use grid bots easily. Growlonix is the best crypto trading terminal that offers the best Binance grid bots. But except it, many other platforms are also offering bots working on grid strategy which you may consider:
This is an automated crypto trading platform with built-in trading bots. It offers grid trading bot which will let you buy low and sell high. All you need to do is to set up the bot and forget everything as the bot will take care of everything on your behalf. The leveraged grid bot here will multiply your profits and maximize your profitability.
This is another leading trading platform offering grid bots for Bitcoin and other major cryptocurrencies. You can set Bitsgap grid bots to set grid orders. The platform supports Binance trading bot for futures trading and lets traders earn profits from both rising and falling market trends.
This is an all-in-one trading platform providing traders’ access to copy trading, grid bots, back testing, and other major features. The platform supports Binance grid trading bot to make use of this strategy to earn good profits.
Grid trading is a time-tested strategy which has become quite popular among traders to manage risks in the highly volatile trading market. Grid trading bots are making the life of traders easier by executing buy and sell orders automatically.
Smart traders make use of grid trading bots which works on grid strategy. This strategy works best when there are minimal price changes and a sideways market. Growlonix is one of the best crypto trading platforms offering Binance grid trading bots via making use of APIs. The platform offers the best Binance bots with AI advantage.