Hello to all cryptocurrency traders. Today I am preparing a video for you about Grid bots in 3COMMAS. This type of bot released in mid-2019 and is a new product. Many traders have already moved from normal bots (DCA and Gordon) to use Grid bots and are happy with their choice. I suggest you find out their features and benefits. Getting started!
Grid bots review
Grid bots are located in a separate section of 3сommas, it is here. Go to this section and you can find the settings for create the robot. The first line “Account” is offered to choose your account on the crypto exchange. It can be BINANCE or BitMEX. In the second line “Market”, select the market for the main crypto to which we want to trade – BTC, ETH, BNB, etc. And last line “Pair” to choose a pair for trading.
We can find two modes for creating the Grid bot – “AI strategy” (automatic) and “Manual strategy” (manual). AI mode creates a grid bot automatically, depending on the situation in the cryptocurrency market. You only need to select any pair to trade, distribute funds, and click on the “Create” button so that the Grid bot starts working.
In the “Manual strategy” you have to configure everything yourself. There is an upper limit price and lower limit price. The upper limit price is the maximum price reached in the last 7 days, increased by 3%. Lower limit price – the lowest price achieved in the last 7 days, reduced by 3%. Here also we can find information about “Profit per grid”.
In general, the upper and lower prices are the limits of the range in which the grid bot trades. Let’s say the current price of Bitcoin is about 7000 dollars, and you want to trade in the range of 800 dollars both up and down. This is $ 7,800 as the upper limit price and $ 6,200 as the lower limit price.
Grid bots advantages
The grid bot should divide the provided range into several levels. The grid quantity setting dictates how many splits the bot will do. The AI strategy determines this automatically. And if the price moves out of the grid range? Grid bots do not automatically change their price range, even if it is an AI bot.
When the price goes out of the grid range, the bot endlessly waits until the price comes back. You can switch to the “AI strategy” mode at any time. Grid bot starts trading with allocated funds immediately after its creation. Because the robot simultaneously opens buy and sell orders, both crypto coins from a pair are required for trading.
For example, you trade BTC to USDT, then there must be both BTC and USDT on the account. This robot is trying to catch every price movement in the specified range. The robot splits the range into several levels and places buy or sell orders at each level, which allows you to buy at each fall and sell each growth.
Keep in mind that grid bots of 3COMMAS do not risk trading the closest level to the current price. For example, here is level 5, so the bot removes it. The robot turns all levels below the current rate into buy orders, and all levels above into sell orders. When a sell order is executed, the bot opens a new buy order 1 level lower.
Grid bots – how to use?
Let’s say the price reaches $ 7200 and fills your order, then the bot places a new purchase order at level # 5. Level # 6 is now inactive since it is closer to the current price. The robot will wait for the price to drop. Whenever a bot buys more coins, it opens a new sell order one level higher.
The price reaches $ 7000 and fills your order, and the Grid bot open a new sell order at level # 6. Level # 5 is the closest to the current price and is now inactive. This continues until you stop the bot. See an animated example here, I can just show you a good example.
The upper limit price is the price of the highest level. The lower limit price is the price of the lowest level. The number of grids is the number of levels you want to trade. If you set ten grids, the bot will make 7 additional levels between the upper and lower limits. The bot ignores the closest level to the current level, and the upper and lower limits themselves become levels.
The quantity in the grid is the size of one order. The bot will buy and sell in sizes according to this setting. If you are wondering why a grid bot with 20 grids and 0.05 BTC per grid requires 0.95 BTC instead of 1 BTC, this is the ignored level closest to the current price. The robot always has one less active order than the number in the grid.
To summarize. In this video, we had a review of the 3COMMAS Grid bots. You have known what it is and how to use it. I compared it to regular DCA bots and talked about their advantages and disadvantages. Depending on your strategy, you can use DCA and Grid bots at the same time, or choice at one type of bot. That’s all, see you my new videos!