How to Choose a Trading Bot Under Different Market Conditions

Volatile Market: Spot Grid, Futures Grid, Margin Grid and Martingale

The crypto market experiences a volatile market approximately 70% of the time. To take advantage of this, the Grid Trading Bot can assist you regularly by frequently executing an arbitrage strategy within a set price range while strictly adhering to the Grid Trading method. The bot will steadily accumulate grid profit, avoiding the temptation to sell all positions in response to regular market fluctuations. 

 

Most traders focus on correctly predicting a trend and betting on that prediction by trading accordingly (for example, If this EMA crosses that, while the X-Indicator is showing this, the price will likely go up). Sadly, more often than not, the market just has no clear trend, or the trend goes in the wrong direction. 

 

However, with a Grid Trading strategy, you don’t need to wait for the perfect opportunity to “predict” the next move. If the trend goes downwards, you buy cheap and then cheaper. If the trend goes upwards, you sell high and then higher. If it doesn’t go anywhere, you keep buying low and selling high, making profit from all the small fluctuations it does until it changes into a trend.

 

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Spot Grid

Use this strategy when you believe the price will fluctuate upward. The strategy will first execute the buy order, then execute the sell order when the price goes up, and repeatedly buy low and sell high to earn profits from the price difference.

 

Futures Grid

Futures Grid - Long: Use this strategy when you believe the price will fluctuate upward. First, enter the market with a long position, close the long position when it is high, and continue to open a long position when it is low.

 

Futures Grid - Short: Use this strategy when you believe the price will fluctuate and fall. Enter the market with a short order first, close the short position on dips, and continue to open short positions on highs.

 

Margin Grid

Use when you hold tokens and you believe that the price will fluctuate upward or downward. If you choose to go long, the strategy will first buy tokens, sell after the price rises, and repeatedly arbitrage. If you choose to go short, the strategy will first sell tokens and then buy them back after the price drops to complete the arbitrage.

 

Martingale

Martingale Bot is a strategy that buys in bulk when the market falls and sells it all at once when it rallies for arbitrage. It is also suitable for profiting in volatile markets. It is designed to help investors recover from losses by increasing the size of their trades after each loss. This strategy is based on the idea that a winning trade will eventually occur and will be large enough to cover the previous losses.

 

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It is more difficult to operate than Grid Bots because it needs to consider more parameters and is more complex. It is recommended that novices use the Grid Bot first and then try Martingale Bot after getting familiar with the bot.

 

Long-term Hodler: DCA, Smart Rebalance, and Infinity Grid

 

Traders using these bots usually ignore short-term price movement and focus more on long-term trends. These bots can help investors avoid the temptation to buy or sell based on short-term market fluctuations, and instead focus on their long-term investment goals. 

 

DCA

DCA is a strategy that makes regular and fixed-amount investments without considering the timing of entry. This method of buying in batches at time intervals can resist the risk caused by one-time buying and overcome the weakness of human nature of chasing the rise and killing the fall.

 

It is suitable for investors who are optimistic about the target assets in the long term and do not care about the repeated rise and fall of the market in the short term. After the first purchase, future purchases will be made according to the set time interval and amount, diversifying risks and smoothing investment costs.

 

For example, if you want to buy BTC, which is promising in the long term, because the market conditions will not always be good or bad, you can use DCA strategy and set up an automatic purchase every 24 hours. You can also choose to buy every hour or buy every week or month.

 

Smart Rebalance

You can put a variety of assets that you are optimistic about in the long term into the Smart Rebalance bot. It will automatically adjust positions according to the rise and fall of the exchange rate between tokens to maximize comprehensive income.

 

For example, you have BTC and ETH in your Smart Rebalance bot. When the price of BTC rises, the bot will automatically sell a certain amount of BTC and buy some ETH. The position value ratio of BTC to ETH in the portfolio does not change, but through buying and selling, the amount of ETH increases.

 

The advantage of this strategy is that you can use the exchange rate fluctuations between different tokens to earn and hoard coins, and earn profits from the fluctuations. In this way, during the holding process, the number of tokens in the asset portfolio will continue to increase, and the corresponding returns will be greater when the market improves.

 

Infinity Grid

In Spot Grid trading, when the price exceeds the upper limit of the grid, all positions will be sold. At this time, if the market suddenly rises sharply, you may miss out on the subsequent market trends. As an advanced version of the Spot Grid, the Infinity Grid perfectly solves the situation where the price breaks through the upper limit of the grid, causing users to miss out on future profits.

 

The operating logic of Infinity Grid is to make profits by continuing to sell high and buy low, and ensure that the value of the tokens held by users remains unchanged during the rising market.

 

Using the Infinity Grid strategy, no matter how many times you sell, you still have the initial value of the asset, and as the market rises, the assets sold are your floating income. Therefore, Infinity Grid is suitable for the slow bull market that fluctuates upward.

 

Profit in Rebounds or Pullbacks: DualFutures AI

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DualFutures AI Bot can sensitively capture market trend reversal signals and choose long or short directions for trading in futures. When the upward trend peaks and a pullback signal appears, the bot will open short orders to earn short profits; on the contrary, when the downward trend bottoms out and a rebound signal appears, the bot will open long orders to earn long profits. Regardless of whether the market trend is a rebound or a pullback, it will seize trading opportunities to obtain two-way profits from long and short. 

 

DualFutures AI is a quantitative strategy for Futures trading. It can help traders who want to earn high risk rewards through Futures trading, but do not know how to trade futures themselves. You only need to invest funds and start the bot, and it can automatically open and close positions according to specific trading signals.

 

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