How does the Grid Bot work?
In our “3Commas useful guides” post, we have actually already thought about the essentials of the Grid Bot operation. We strongly advise that you take a look at it before reading this post!
Let us briefly recall the essentials: in order to introduce a GRID bot, it suffices to define the upper and lower price limitations for the Bot to run in and the variety of cost line levels in between them. The method develops a series of horizontal buy and sell levels, and the Bot accumulates earnings as the cost relocations, “bouncing” within the grid.
What are the benefits of our GRID bot? Bots on the crypto market mostly operate by means of signals to begin and finish a trade, however a GRID bot is different
. A GRID bot does its best to earn on every rate motion through purchasing lower and offering greater. When the cost goes down– the Bot builds up the selected asset; when the cost goes up– the Bot offers. It operates 24/7 till the price exceeds the grid. All it needs is to specify the lower and upper cost of the grid and the width of each level, where the Bot will purchase and sell the coins.
Let’s proceed to our Grid Bot settings.
To do so, go to the GRID bot page or www.tradingview.com (whatever is easier for you) and begin seeing the charts of various coins. The objective of manual analysis and Grid Bot production through “Manual method” is to discover and pick such trading pairs, where the price is near the assistance level, which is the most vital element for success in trading with a GRID bot.
The assistance level is the minimum price level for a particular time period. As a guideline, when reaching this level, the rate reverses and goes up.
It is best to look for coins on the 4-hour timeframe and beyond. The most ideal coin will be the one that has actually decreased in cost to some strong assistance level and is continuously warded off. That is, you can see that the purchasers are redeeming the “bottom” whenever. Ideally, of course, we must search for a coin with greater volatility; we will have a better opportunity of making revenues while the price moves up or down our grid.
High volatility leads to greater dangers but also opens up more chances for earning while trading.
Having checked out the different coins and applied the standard technical analysis skills, we chose to concentrate on the ZRX/USDT pair.
Here are the primary reasons:
- The rate rebounded from the bottom of a strong assistance level, from which it can go up once again gradually or get in a range, i.e., it will go up or down and then out of this channel. That’s exactly what we need. The goal is for the cost to move within our channel and after that increase. After that, we can securely close our Bot and relocate to the next coin;
- There is a strong Bullish divergence on the RSI indication.
Bullish divergence is the lower lows for the price chart and the higher lows for the sign, in this case, RSI.
- ZRX does not lead in regards to market capitalization, but together with LEND it has a lot more holders than other Defi tokens, which is an essential sign in trading.
So, we have 300 USDT, and we wish to grid the ZRX/USDT set. The GRID bot itself is a fairly large bot, which means that the more levels we established, the more spare balance we will require. Let us begin establishing our Bot. Go to the 4-hour timeframe (better summary of levels) and change the chart so that the cost goes from the bottom of our strong assistance level to the top of the channel where the rate can move for a long time inside our grid. We set the grid so that the lower and upper grids struck the lower rate and the upper rate of the channel. This way, the price movement in the grid will strike each level as typically as possible. If the 4-hour timeframe is not convenient, you can select a 15-minute timeframe for precision (it matters if the grid is not as huge and its width is less than 1%).
Next, set the following parameters in the Grid Bot settings:– Pair: ZRX/BTC Upper limit cost: 0.4250 Lower limitation cost: 0.3065
Number of grid lines: 30
Quantity in one Grid: 33 ZRX (minimum quantity for each trade, simply over $10)
Investment quantity: 272 USD
— Bot launch cost: 0.3174
Grid Width: 0.96% ~ 1.31%
Overall grid period: 38%
When Grid Bot settings are total, click “Produce”. Then click “OK”when receiving the “Bot effectively produced” message. After that our Grid Bot is prepared to work, however it is notintroduced yet. Check all the Bot’s settings in the “My Grid Bots”section listed below the chart (if needed, you can click”Modify” and fix the settings); when you are satisfied with the setup– begin! To introduce the Bot, click “Allow.”
Next, the Bot will ask us again if we are sure of our actions; if so, we confirm by clicking the” Confirm “button. And last, but not least: For Grid Bot to work, we need to buy the needed quantity of ZRX
; you can do it by hand utilizing the Smart Trade terminal or just click the “Market purchase”button. After that, our GRID Bot will begin to work, i.e., it will position limitation orders on the exchange, and at each cost movement and execution of each limit order, it will recreate any filled orders again and once again and bring earnings with each price movement within our grid.
If we click a set in the GRID Bot settings (in our case, it is ZRX/USDT), a chart revealing the grid itself and the performed orders will be opened. From time to time, when we open the chart, we will get an image with some Bot analytics. Likewise, in the “My Grid Bots” area, beside your Bot data, you will see the recognized revenues on the right. If essential, you can stop the Bot, wait 30-60 seconds (so that the Bot can cancel all limit orders on the exchange), make modifications to the grid, conserve and run it once again.
Also, if we click the header of our GRID bot, it will open a page with our open position and all limitation orders that are positioned, the limitation orders lock the funds the bot requires to operate. Also, on this page, you can export all of the information connected to your Bot.
What’s the best time to exit the GRID bot? The ideal time to stop the Bot and close it is when the price goes all the method from the bottom to the leading and out of the grid. If the cost went listed below the bottom of the grid, there essentially are 2 options: to wait for the price to return into the grid or stop the Bot. This would imply that your wallet will hold unsold (in our case ZRX) coins. You can attempt to offer and make money from the coins stuck in your wallet utilizing the Smart Trade manual terminal and the Smart Offer tool. If we have available balance in our wallet, you can utilize “Averaging” and wind up benefiting. Therefore, we will get a profit both from the Grid Bot, and from the Smart Offer deal.
Let’s check our GRID Bot’s development the next day.
As we can see from the chart, the ZRX price has actually gone up, and the Bot is working and making a profit. Previously, we mentioned that in order to make a substantial revenue on each rate motion, you need to go into a larger amount than we utilized for example functions. However, our Bot is carrying out well and reveals positive results.
How do you track the Bot’s performance?
At the bottom of the chart, we see the “B,” “S,” or “BS” marks.
“B” ways that the Bot purchased here;
“S” means that the Bot sold here;
“BS” methods that the Bot purchased and sold here.
In the deal summary, we see all the income that the Bot managed to bring. If you click on”Program all deals,” you will see a complete photo of how your Grid Bot carried out.
Well, here we are! Now, having comprehended the work of the Grid Bot following the examples, you can quickly set it up, begin trading, and making profits!
And if you have not tried our platform before, now is the best time to do it!
Register with 3Commas and get 3 days of free access to all features, in addition to a 50% discount when you buy an annual membership!
Disclaimer: The contents of this short article are not meant to be financial recommendations and ought to not be dealt with as such. 3commas and its authors do not take any obligation for your profits or losses after you read this short article. The article has actually been presented to provide readers with basic info. There is only personal experience explained herein. The user should do their own independent research study to make educated choices regarding their crypto investments.
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