Step 1: Choose a Trading Bot according to your trading style and market conditions.
Before we discuss trading bot strategies, we must first figure out whether you are a short-term or a long-term trader. Different trading styles determine the use of different trading bot strategies.
Observe and determine the main trend through market rules, economic fundamentals, and technical indicators, and choose the timing of entering and exiting the market. Long-term traders are more suitable for using Trading Bots such as Smart Rebalance Bot, DCA Bot, and Infinite Grid Bot.
Traders using these strategies usually ignore short-term price movements and focus more on long-term trends. To make this type of trade, traders usually observe the daily, weekly, and monthly timeframes.
Smart Rebalance Bot can automatically manage your crypto assets and automatically adjust positions according to a certain ratio so that the amount of coins you hold will accumulate more and more.
DCA Bot can help you buy assets on a regular basis and reduce your holding costs by buying in batches.
Infinite Grid Bot can earn USDT through grid arbitrage while keeping the amount of coins you hold unchanged.
They are all suitable for long-term trading, ranging from several months to several years. They are also suitable for entering the bear market or the early stages of the bull market and earning high returns across the bear-bull cycle.
The holding cycle is between long-term and short-term trading, generally ranging from a few days to weeks. It is often necessary to gauge the main trend based on fundamentals and technical indicators, choose the timing to enter the market, and leave the market when there is a relay adjustment or reversal in the market. Trading Bots such as DualFutures AI Bot, Spot Grid Bot, Futures Grid Bot, and Martingale Bot are all suitable for medium-term trading.
DualFutures AI Bot will automatically capture trading signals based on technical indicators to open and close positions, which is suitable for profit from rebounds or pullbacks after small and medium cycle trend reversals. Generally, this strategy enters the market when it is in a sideways arrangement, and leaves the market before a big rise or a big fall.
Spot Grid Bot, Futures Grid Bot, and the Martingale Bot are suitable for entering the market after the volatility market starts. If you run Spot Grid Bot or Futures Grid Bot in long, enter the market at the bottom of the short-to-medium cycle. If you run Futures Grid Bot in short, enter the market at the top, while Martingale Bot avoids entering at the top. It is necessary to flexibly adjust the strategy parameters according to the changes in the market fluctuation range.
Capturing trading opportunities based on technical indicators and trading signals means that there are more trading opportunities. However, the cost of trading fees is relatively high, and the max profit is not as good as that of long-term trading. Short-term traders can use Futures Grid Bot to capture small-level reversal signals within the day to open long or short, and take profit before the trend reverses. When starting a Futures Grid Bot, you need to set take-profit and stop-loss to avoid the risk of large losses and liquidation caused by a sharp rise or fall in the market.
Step 2: Select the parameters.
If you are new to using a Trading Bot, we have two tips to help you get started easily. One is AI parameters, which will provide the bot parameters based on the historical data of the coin.
Another way is to choose the AI Plus mode. As of now, this mode only supports Spot Grid Bot. It does not require you to set any parameters, however, the AI program automatically sets the parameters and trades according to the established strategy logic.
If you are an advanced trader, then you can use the custom mode, using your own cognition and judgement of the market, and set the parameters by yourself.
Step 3: Select the trading pair.
Grid strategy, including Spot Grid, Futures Grid, Infinite Grid, etc., prefers mainstream coins such as BTC and ETH, or hot coins with a larger trading volume and high volatility. Only with a large enough trading volume can there be sufficient trading depth that would make the grid bot's orders be executed quickly. During a volatile market, the high volatility can make the Grid Bot trade frequently, obtain more arbitrage opportunities, and thus earn more profit.
The DualFutures AI Bot prefers trading pairs with high volatility and large trading volume. It will have more trading opportunities when a rebound or pullback occurs. Either mainstream coins or MEME coins can be used.
Trading bots suitable for long-term investment, including Infinite Grid, DCA, Smart Rebalance, etc., are preferred for mainstream coins or value coins with market recognition. In terms of opening a position in a bear market or bottom, and holding it until the next round of a bull market arrives, the increase of mainstream coins and value coins is bound to be the largest.
As a beginner, when faced with a variety of trading bots available at your disposal, how should you choose the bot that suits you? First, choose a suitable trading bot based on your trading style and your prediction of the market. For long-term trading, choose Smart Rebalance, DCA, and Infinite Grid; for short-term trading, choose DualFutures AI Bot, Spot Grid, Futures Grid, and Martingale Bot. Then choose the timing of entry and exit according to the market conditions. Secondly, after selecting the bot you want to run, you can use the AI parameters to quickly set up your bot or use the AI Plus mode to let the bot run automatically according to the technical indicators. Finally, choose the right trading pair to create your trading bot that could result in high returns.