Streamline trading routine and take advantage of every trading opportunity 24/7 without constantly monitoring the market. Trading bots are always the best choices to make every trading less stressful, take emotions out of trading decisions, and increase PnL regardless of the market conditions. In this post, we’re going to dive deep into the Binance trading bot and what’s the difference between the Pionex trading bot.
- 1 Different Types of Binance Trading Bot
- 2 How to use bot to trade crypto on Binance?
- 3 How profitable is Binance trading bot?
- 4 Pionex trading bot VS Binance trading bot
- 5 Binance API Trading Bots (Subscription Plan)
- 6 FAQ – More questions for the trading bot?
Different Types of Binance Trading Bot
Currently, Binance provides Spot Grid Trading Bot, Futures Grid Trading Bot and TWAP Bot on the futures market. Grid bot helps traders to make profits from the up and down of the price. It’s one of the famous bots in the volatile market.
Binance Spot Grid Bot
Binance Spot Grid Bot is a trading bot that automates the buying and selling on Spot trading. It is designed to place orders in the market at preset intervals within a configured price range. Binance Spot Grid Trading performs the best in volatile markets when prices fluctuate within a specific range.
Binance Futures Grid Bot
Whereas Binance Futures Grid Bot allows users to apply Grid Trading Strategies to Futures Contracts on Binance Futures, allowing them to increase their position sizes using leverage and maximize their potential profit.
TWAP (Time-Weighted Average Price)
TWAP (Time-Weighted Average Price) is an algorithmic trade execution strategy that aims to achieve an average execution price close to the time-weighted average price of the user-specified period. A TWAP strategy is often used to minimise a large order’s impact on the market by dispersing the large order into smaller quantities and executing them at regular intervals over time.
There are several types of trading bots out there that work with Binance and we are going to highlight some of these.
How to use bot to trade crypto on Binance?
To maximize profit using Grid Trading Strategy on Binance, we need to follow these 7 simple steps for the bot to place orders and execute the strategy.
- Login into your account
- Click Trade and then Strategy Trading
- Select the Strategy Type you’d like to trade
- Select a given trading pair
- Choose between time intervals options
- Enter the amount to invest
- Click Create to place your order
How profitable is Binance trading bot?
Binance is an exchange first and foremost, because of that, they don’t really focus much on the automatic trading side of the game. The principle for the Spot Grid Bot and TWAP bot on Binance and Pionex are the same. It follows the same trading strategy/execution: placing buy and sell orders within the price range and catching every tiny fluctuation while the price is volatile.
Although the fundamental strategy is the same, there’re still some differences between both platforms, Binance Grid Bot is available in the perpetual futures market.
Binance has 3 modes of grid trading strategy, Long, Short, and Neutral. For Long and Short mode, you will open an initial position (Long or Short) while simultaneously placing buy-limit and sell-limit orders at predetermined intervals to capitalize on market volatility and ranging conditions.
Long mode of Binance trading bot
In the long mode, if the price increases, it will decrease the size position with sell orders on each grid level. If the price decreases, it will add more positions with buy orders.
Short mode of Binance trading bot
Meanwhile, in short mode, it is the reverse of long mode since it will have a short initial position. For Neutral mode, you don’t have any initial position. It will place limit sell orders above the starting price and limit buy orders below the starting price.
There is not always a guaranteed return on your investment. This leverage feature would amplify your profit, and also, it would amplify your loss if the price goes opposite.
Pionex trading bot VS Binance trading bot
To outperform the trading results, Pionex using the newly developed quantitative trading strategy backtesting system on AI2.0 based on 30D, three major features have been comprehensively improved: more accurate backtest results, higher grid revenue, and smarter grid intervals.
You may execute your strategy against Pionex AI 2.0 to compare the trading results.
Comparison of the Trading bot features
Binance Grid Trading Bots offer their service in both Spot and Perpetual Futures market. The futures market contains higher risk compared to the spot market since it incentivizes users to use leverage. While it might give better results from leveraging the initial margin, it also has a higher risk because it will have liquidation risk if the price goes spiking the other way round.
Aside from that, the principle of the Grid Bot Strategy in Binance is still the same as Pionex Grid Bot. It buys low and sells higher while also performing very well in a ranging market.
|AI Strategy||7D, 30D, and 180D||7D, 30D, and 180D|
|Grid type||Geometric & Arithmetic||Geometric & Arithmetic|
|Max. Grid #||150||250. Up to 1000 grids for BTC|
|Max. active bot||10 bots for one account.||30 per trading pair, and up to 3000 bots for one account.|
|Change price range||X||O|
|Pause the bot||X||O|
|Change stop loss price||O||O|
|Change take profit price||O||O|
|Customized bot name||X||X|
Binance API Trading Bots (Subscription Plan)
There are a lot of third party bots, be it a paid one or an open source bot that you can use to trade on the binance platform. Following is a handpicked list of Top Binance Trading Bots with their popular features.
|Tools Name||Works with Binance?||Types of Bots||Free Trial|
|Pionex||Yes||Grid Trading Bot, Arbitrage Bot, Martingale Bot, Spot-Futures Arbitrage Bot, Rebalancing Bot, DCA, etc.||Lifetime Free with unlimited bot usage.|
|3Commas||Yes||DCA, Grid Bot, Options Bot, Futures Bot||Lifetime Free Basic Plan with limited Bot usage.|
|Cryptohopper||Yes||Mirror trading, Market-Maker, Arbitrage, AI, Arbitrage Bot, Grid Trading Bot||Lifetime Free Basic Plan with limited Bot usage.|
|Bitsgap||Yes||Arbitrage, Grid Bot, Unlimited Smart Orders, Futures Bots, Trailing Up & Down for Bots, Take Profit for Bots||7 Days|
Pionex – Best Built In Trading Platform (FREE)
If you are still not sure where to begin with a trading bot, I would suggest Pionex. Pionex is an actual exchange that has 16 crypto trading bots built into the user interface. You have access to these bots as soon as you sign up and they are free to use. The only thing you would need to do is fund your account and then you can get started.
- Exchanges: Pionex
- Fees: 0.05% trading fee for maker and taker. No subscription fee is needed for the trading bot.
- Programming Language – No programming required.
3Commas – Best for Advanced Traders
If you are an advanced Trader then 3Commas might be a great trading bot for you. It has a very advanced strategy when trading, however it is very user-friendly. This makes it a great choice for individuals who are working for themselves and trading while trying to learn the market and adapt to different strategies that are happening in real time.
- Exchanges: Binance, FTX, BitMEX, Beribit, Bittrex, Binance DEX, Binance US, Bitfinex, Bitstamp, CEX.IO, Coinbase Pro, EXMO, Gate.io, HitBTC, Huobi, Kraken, KuCoin, OKEx
- Fees: Free to $100/month
- Programming Language: No prior language is needed.
Cryptohopper – Best All Around
Cryptohopper has a lot of bang for its buck. It works with 100+ coins and on 13 different exchanges. It is one of the more popular trading Bots with hundreds of thousands of users. This trading bot has something for everyone. Noob traders will find that this trading bot offers a vast amount of resources in order to help educate the traitor. The trading bot is cloud-based which means you can run it while you are offline. It has a great toolbox for beginners and the user interface is amazing!
- Exchanges: HitBTC, Okex, Bitpanda, Bitvavo, Biance, Binance US, Coinbase Pro, Bittrex, Poloniex, Bitfinex, Huobi, KuCoin, Kraken, Crypto.com
- Pricing: Free to about $100/month
- Programming Language: No prior programming knowledge needed.
Bitsgap – Overall Best Bot
Bitsgap provides users with the grid trading bot, which works by allowing users to set a range with which they think their crypto asset would fluctuate between. i.e (lower limit and upper limit). The bot then distributes the allocated investment evenly. The system then sells when prices move to the upper limit and sets a buy order lower which gets triggered once prices drop. This happens over and over as long as prices stay within the set range.
- Exchanges: Binance, Coinbase Pro, Okex, FTX, Bitstamp etc
- Pricing: Free to about $110/month
- Programming Language: No prior programming knowledge needed.
FAQ – More questions for the trading bot?
What is unrealized profit?
What is a Grid?
Grid trading is a type of quantitative trading strategy. Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. In this way, it constructs a trading grid. Through quantitative trading, it helps you trade rationally and avoid FOMO where possible.
How to earn money with Binance Trading Bot?
They are profitable depending on the type of trading strategies employed and market conditions. Profitable bots are designed with the most effective strategies and rules that help best predict crypto price movements. If a bot can make the best and most relevant price predictions as quickly as possible to capitalise on market movements, it will generate a profit regardless of market conditions. But they may also make losses.
What is a backtest?
Backtesting is a process of running a simulation on the trading strategy based on historical prices. so traders can have the confidence to employ and tweak successful strategies.
What is Pionex AI 2.0?
AI strategy will automatically generate the optimal grid bot parameters according to the strategy algorithm. based on 30 day backtesting. Three significant features have been comprehensively improved: more accurate backtest results, higher grid profit, and more intelligent grid range.
How to Access Pionex AI 2.0?
Open the Pionex APP, click the “Trade” button at the bottom of the page, select the type of token you want to trade, click the “Create a Bot” button at the lower right corner of the page and then the “Grid Trading Robot”, lastly, click the “Create”.
Start Trading Bot for Free
Visit Pionex and start your trading bot journey today. It’s all free and easy to get started.