Tuesday, August 9, 2022
Home Crypto News Market Classic vs. SBot - Which GRID Bot Suits Your Trading Style?

Classic vs. SBot – Which GRID Bot Suits Your Trading Style?

- Advertisement -
Follow-Us-On-Google-News

The Grid trading strategy is a technique to make profits on market movement by positioning buy and sell orders at different levels, above and below a set price. You can create your grid to profit from trends or ranges and even automate it. Bitsgap SBot and Classical bot are the two most well-known trading bots with their own set of advantages.


 

What makes Grid bots popular?

The Grid system has become quite popular among traders as it is possible to visualize the results. The best thing about this approach is that it can offer investment opportunities even in volatile market conditions. There’s no need to worry about the market direction. Once the trader knows that the market is going to make its next move, the strategy will take care of the rest. This is especially applicable to cryptocurrency trading, where volatility is common.

Once the user sets up a grid, he/she can automate it to place buy and sell orders without having to open and close positions manually. It may take some trial and error before the trader can develop a profitable approach. Some providers leverage Artificial Intelligence to improve their strategy and bring more profits with the bot.

Users must have an understanding of market fractals, fundamentals, dynamics, and broker’s commission to increase trading profitability. The grid trading bot needs to be set up accordingly to cut losses and increase profit potential.

Configuring a Grid trading bot

The Bitsgap trading bot is a great ally in a fluctuating market. But before you let the system run on auto-pilot, below are some necessary settings to consider:

  • Grid number: It signifies the maximum number of buy and sell orders that you can assign to a grid. For example, if you input 20, you will have 10 buy and 10 sell orders!
  • Take-profit: The maximum value at which your grid will sell all positions and book the profit.
  • Stop-loss: The lowest price point where you automatically exit the trade. Once the stop-loss triggers, your positions will be sold at a loss.
  • Lower-limit: It is the bottom price limit of the grid, which is often a bit higher than the stop loss. The bot won’t place any buy orders below this limit.
  • Upper-limit: It is the top price limit of the grid that is directly proportional to your profit potential. The bot won’t place any sell orders above this limit.

When dealing with volatile digital assets, make sure to choose a cryptocurrency with sufficient trading volume to make the process easier.

Using the Classic Bot strategy

When you expect the market to be bullish in a given period, it is the best time to use the Classic bot strategy. It has statistically proven to be more profitable when the prices are going higher. The bot dynamically adjusts the grid based on market movements.

Classic bot buys and sells the equal amount of base currency despite the price

The investment distribution logic involves buying and selling a fixed amount of base currency per order. It maximizes the return from each trade due to an increase in the volume with the rising value. When the market conditions are favorable, you ought to win big. The opposite happens when the market tanks!

Using the SBot Strategy

When the prices are trading sideways and the market direction is unclear, it is best to use the Sbot strategy to make money. This bot can trail up and down based on market fluctuations. The in-built feature simulates a trading algorithm using the past data of an asset to assess the volatility and profitability before risking any capital.

Sbot buys and sells a certain amount of base currency with the same amount of quote currency.

The investment distribution logic of SBot is a step ahead of the classic. It always buys and sells a fixed volume of the quote currency per order. For example, if your investment sum is $50, the bot will buy $50 worth of the asset when the price drops. Similarly, when the price rises, the bot sells $50 worth of the asset. This means you buy more at lower prices and sell lesser at higher prices, regardless of the market conditions. Here, the dollar-cost-averaging method comes into play!

Conclusion

The features of automated Sbot and Classic bots may seem attractive, but it is vital to manage your risks. The market can make explosive moves in either direction, and you must be prepared for any situation. Switching between these grid trading bots is the best strategy to make the most of your capital!

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

IMG 20180209 WA0001
Jakkkhttps://thecryptobasic.com/
Owner of TheCryptoBasic. Involved in cryptocurrencies for more than five years, Love to trade and write on cryptocurrencies. My primary aim is to provide genuine information to cryptocurrency readers because crypto is filled with frauds and scams. Accurate information is scarce to get. So We at TheCryptoBasic will be providing accurate information about cryptocurrencies topics that users can trust.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

How Decentralized Finance (DeFi) Can Bank The Unbanked

In the world of blockchain, the vast majority of decentralized finance news focuses on how this industry can further innovate financial technology, improving existing...

Why Are Most P2Es So Boring?

P2E (play-to-earn) games have been around for quite a while now. Numerous platforms have entered the market, each trying something different and at least...

Keninah Takes Donation Blockchain To a New Level Alongside Cardano

The coin market has seen significant growth since the introduction of the first crypto asset – Bitcoin. The changes in structure, however, use cases,...

Mike Novogratz Says Ethereum Could Reach $2,200 Before The Merge

  Mike Novogratz predicts Ethereum might hit $2,200 or more before its Merge release. window.coinzilla_display = window.coinzilla_display ||...

FTX Partners Reddit to Enable Redditors to Utilize Their Community Points for On-Chain Transactions 

  Redditors can use community points for on-chain transactions via FTX Pay.  window.coinzilla_display = window.coinzilla_display || ; ...

Iran Makes First Crypto-Based Import Order Worth $10 Million

  The Iranian government makes its first payment in cryptocurrency for imports totaling $10 million. window.coinzilla_display = window.coinzilla_display...

PIXXTASY Project – Don’t Use. Just Own It.

PIXXTASY is the brainchild of Zoltán Egri, a man who overcame a two-year drug addiction and has since become a serious anti-drug advocate. His...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.