What is a grid trading bot?

Grid trading bots are trading algorithms or codes that attempt to make profits from price changes within the predefined grid area. The trader sets up the parameters or limits for the grid trading bot to function within the predefined range and execute orders as per forethought rules. Thus, grid trading bot orders automate crypto trading.

How to create a trading bot?

Create your grid bot by specifying the parameters like the currency pair you want to trade on, the size of your grid, and other settings such as stop-loss orders. Once all these components are in place, your trading bot is ready to go. All that’s left for you to do is monitor its performance and adjust it if necessary.

How does grid trading work?

Grid trading automates the buying and selling of cryptocurrencies by following rules set by the trader. It allows you to select an area where the trading bot will execute buy and sell orders. When the price drops to the lower limit of the area, a buy order is executed, whereas the trading bot will sell when the price rises above the upper limit.

How much money can a grid bot buy bitcoin?

In the below example, the price of Bitcoin ranges between $30,000 and $20,000. The seasoned grid trader, Pete, 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 Bitcoin.