The Ultimate Guide For Grid Trading Bot 2021 | 8 Grid Bot (that Actually Work)

Grid Trading Bot is one of the famous tool that help traders to place buy and sell orders automatically 24 hours a day. Here’s the complete list for you to learn which platform to use if you’re considering start a grid bot.

What is a Grid Trading Bot?

Grid Trading Bot is the trading bot that helps you to perform the Grid Trading Strategy. It helps you to place series of buy and sell orders within the price range. Whenever a sell order gets fully executed, the bot will place another buy order immediately at a lower grid level and vice versa.

Grid Trading Bot places series of orders
Grid Trading Bot places series of orders

What is Grid Trading?

Grid Trading is a trading strategy which, in contrast to most other strategies, works best in a ranging sideways market with no clear direction. It profits from the ups and downs of the price fluctuations in a market and is best used while there is no clear up or downtrend for a longer period. The more frequent and the bigger the price fluctuations are, the more profitable the strategy will be.

Bitcoin Grid Trading Bot

Simply put, a grid strategy works by scheduling or setting up buy and sell orders in a predefined price range, creating a grid-like formation; This is where the strategy gets its name from.

Grid Trading Bot Review – Best 8 Grid Trading Bot you should know.

There are several exchanges and 3rd party providers that support Grid Trading Bot for crypto traders. Here are the top 8 grid trading bot currently available on the market.

  • Pionex (Free)
  • BitUniverse (Free)
  • Binance (Free)
  • KuCoin (Free)
  • Huobi (Free)
  • 3Commas (Paid)
  • TradeSanta (Paid)
  • Bitsgap (Paid)

Pionex

Pionex is the leading exchange that provides 12 built-in trading bots on the platform itself. Grid trading bot is the most famous trading bot on the platform. Pionex is one of the biggest Binance brokers and aggregates the liquidity from Huobi Global simultaneously, which makes Pionex the best platform for crypto trading bot traders.

  • Fee: 0.05% trading fee for maker and taker. No subscription fee is needed for the trading bot.
  • Feature: 6 different grid bot.
  • Pionex official site: https://www.pionex.com

BitUniverse

BitUniverse is the very first company to bring grid trading bot into the crypto world. The team partnered with most of the major exchanges to integrate their grid trading bot with exchanges’ API keys. It provides a mobile-friendly interface for crypto traders that can easily tweak the App’s parameters.

  • Fee: No subscription fee is needed for the trading bot.
  • Feature: A regular grid trading bot that support 20+ exchanges’ API key.
  • BitUniverse official site: https://www.bituniverse.org
BitUniverse grid trading bot

Binance

Binance is the leading cryptocurrency exchange that supports 300+ altcoins for crypto traders. Retail investors can use their credit cards to purchase Bitcoin on the Binance exchange. Binance provides grid trading bot on their futures market only, which is more suitable for those who prefer perpetual futures trading. Not recommend for crypto newbies cause you might get your funds liquidated. The principle behind Binance’s grid trading bot is quite different from the mainstream grid trading bot. It won’t hold any position for you at the beginning when you create the bot, but shorting or longing on each grid level if the price reaches the buy and sell orders.

  • Fee: 0.1% trading fee for maker and taker. No subscription fee is needed for the trading bot.
  • Feature: Grid trading bot on the perpetual futures market.
  • Binance official site: https://www.binance.com/en

KuCoin

KuCoin was a famous exchange back in 2017. It provides a wide variety of altcoins, but the liquidity is not that good as most major exchanges. KuCoin provides a grid trading bot right within the platform. One of the best use cases is to use the grid trading bot on KuCoin for those illiquid trading pairs, but not recommend for big capital cause the depth might crew you up.

  • Fee: 0.1% trading fee for maker and taker. No subscription fee is needed for the trading bot.
  • Feature: Grid trading bot on the spot market.
  • KuCoin official site: https://www.kucoin.com

Huobi Global

Huobi is the most famous cryptocurrency exchange in China. Chinese investors can use fiat to purchase cryptocurrency on Huobi with its C2C marketspace.

  • Fee: 0.2% trading fee for maker and taker. No subscription fee is needed for the trading bot.
  • Feature: Grid trading bot on the spot market.
  • Huobi official site: https://www.huobi.com/

3Commas

3Commas is a third party crypto trading bot service in which you can connect your API keys into it and perform grid trading strategy. One of the best features in 3Commas is that it offers paper trading which is idle for those who want to test grid bot before actually putting in the real money. 3Commas also supports most of the major exchanges but you need to pay a subscription fee for using 3Commas.

  • Fee: $99 monthly subscription fee.
  • Feature: Support paper trading for newbies. 
  • 3Commas official site: https://3commas.io/

TradeSanta

Bitsgap

Can you make money with Grid Trading Bot?

Can you make money by investing in Bitcoin? Do you see my point here? When it comes to investing, the results largely depend on your trading skill and how much risk you can take. Grid trading bot helps you to buy low and sell high. Nothing more. It’s one of the best tools if you have a trading plan in your mind. You don’t need to stick with the chart all day long but let the bot helps you to execute the trades. If you still have questions, here’s a great post on Reddit: Has anyone made any real money using grid trading bot?

What are the risks of using a Grid Trading Bot?

Grid Trading is still not a failsafe way to trade assets. All trading strategies have risks, and even though Grid Trading is one of the lower risk strategies, here’s the risk you need to keep in mind while using a GRID Bot.

  1. If the price goes down and never comes back up, which (especially on small market cap coins) is the case more often than you would think. In such a case, even the best grid bot in the world wouldn’t make profits.
  2. If you started a Grid Bot on BTC/USDT in 2017 back when BTC/USDT was at 18k, you would have earned profits with Grid Trading for the whole time, but overall you would still be at a loss.
  3. Suppose you are not managing your buy and sell transactions effectively in a fluctuating market or don’t have essential order types such as stop-limit orders setup for market triggers. In that case, you could lose a large amount of money. It wouldn’t be the bot’s fault since it’s only acting on the settings you chose at the start. But it could still make a large chunk of your trading funds disappear if something doesn’t work out as it was planned. Currently, only Pionex’s GRID Bot provides trigger price, stop loss, and take profit features, which are helpful to prevent that..
  4. It is essential to use the strategy with vigilance and care. Never put more money into it than you could afford to lose. Begin with low funds when you start trading with this or any other new instrument. Initiate with a low amount, then gradually increase it once you grow more confident in using the bot and what settings to choose. 

You can effectively learn more from experience and make informed decisions when using the grid trading method for certain assets and situations.

Do Trading Bots really work?

It works in a volatile market and an uptrend market. It won’t work if the price just keeps going lower and lower.

Do I need to program my own grid trading bot?

You can program your own specific grid trading bot from various open-source grid trading bots on Github. You can search for it on Google if you prefer coding your own crypto bot. It allows you to develop the specific feature in your case and fit your trading favor. But you should be aware of the cost for cloud and server and the risks for the code. Nowadays, several great companies provide grid trading bots that you don’t need to know how to code. All you need is to decide the parameter and which trading pair to use the bot with.

Why should you use a Grid Trading Bot? – 9 benefits of using a Grid Trading Bot

According to author’s 3 years of experience using a grid trading bot in the crypto market, there are nine core benefits for retail users to use a Grid Trading Bot with their investment into the crypto market.

Reliable Strategy in the Crypto Market

Grid Trading has been around for quite some time now, and it is a proven, time-tested, and profitable trading strategy. Tons of examples of successful traders actively using it over decades on all possible kinds of markets can be found. Due to its high fluctuations, especially the crypto market, it became one of the most reliable spaces for Grid Trading strategies.

Simplicity for all crypto traders

Because the strategy does not require any algorithms, indicators, or complicated market signals, everyone can easily understand and use it to make a profit. People with no experience in the crypto trading markets will have an easy time setting it all up.

Versatility

Because the strategy is based solely on the most basic idea of trading (buy low, sell high → earn the difference) and nothing else, it can be used in virtually any market and successfully make profits, regardless of the trend or market behavior. By choosing the price range and the number of grids, you actively define the strategy’s frequency and period.

  • It can be set up for the short term, making hundreds of trades per hour to catch micro profits from all small fluctuations of a day. 
  • You can also set it up for the long term by choosing a huge range, which will allow it to run for months to earn profit from every greater trend change. 
  • Providing Liquidity

Grid Trading is a strategy that retail investors can use for market-making just perfectly. It helps provide liquidity, and by doing that, it will create a ton of trading volume for the trader if it’s configured for that purpose. But (even though most Grid Traders don’t think about it) it can also be incredibly useful on illiquid markets with thin order books. Those markets tend to have huge spikes (like 5% up, then 7% down, etc.) very frequently and in short timeframes. You can easily “eat” all of these spikes by providing liquidity with a Grid Bot and turn them into a nice profit for yourself. Not only that, but it’s also beneficial for the exchange you are trading on and is useful for anyone who would like to trade on that illiquid pair since it enables them to do that for a fair price.

Enhance Your Risk Management

The settings you choose for your grid strategy make a big difference on its success and allow you to influence the risk/reward level even more actively. You can choose if you want to use a GRID Bot to earn steady small profit with close to zero risks (for example: by selecting a stablecoin pair like BUSD/USDT), or if you prefer to take bigger risks for potentially huge returns (e.g., with a low market cap coin that has high fluctuations). It’s great if you want to trade with only the big and reliable assets like BTC. At the same time, you also want to get more significant results in shorter periods, which would otherwise only be possible with trading small market cap coins.

One of the best strategies in a ranging sideways market

Most trading strategies you will find focus around correctly predicting a trend and betting on that prediction by trading accordingly (for example: If this EMA crosses that, while X-Indicator is showing this, then the price will likely go up). Sadly, more often than not, the market has no clear trend, or the trend goes in the wrong direction needed for the strategy, so traders using that strategy have to wait it out and stay flat most of the time. Another thing to keep in mind is that because their trades are just bets on predictions, it’s also very possible that they lose their bet and take a loss. 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 buy and sell and buy and sell, making profits from all the small fluctuations it does until it changes into a trend. So, while other strategies will miss out on most opportunities and maybe even make losses if their prediction is wrong, Grid Trading will make use and profit from any price movement, regardless of the direction (as long as the price doesn’t leave your range downwards without ever reversing back up).

Never ALL-IN: Dollar-Cost Averaging tactic

Grid Trading also is a great way to ensure that you are not missing out on opportunities to buy cheap or to sell high. If you configure a broad range and set it up for the long term, you are guaranteed to have an excellent average price in both cases.

Diversification

Many traders recommend that you spread your funds and invest in multiple assets instead of placing all your bets on one card. So if you are long-term holding two assets, which are exchangeable with each other, you can use Grid Trading to earn some extra profit from fluctuations in between them while doing so.

Automation

Due to its obvious logic and because all of its actions are pre-determined and unrelated to market behavior, Grid Trading is very susceptible to automation. Not only that, but it’s also much easier and even way more efficient to utilize Grid Trading with a Trading Bot instead of trying to follow the strategy with manual trades. Since it can run on virtually any market, in any situation, 24/7 and because it can be configured for basically all periods, it’s one of the very best strategies for traders planning to take their first steps into automation.

How’s the performance of Grid Bot in different markets?

Grid trading bot helps you to buy low and sell high within the pre-determined price range. It works the best while the price doesn’t have a specific direction, consolidation within a price range. If the price starts dumping, you might have some unrealized loss cause it keeps buying when the price dip. But as long as the price bounces back, it’ll eventually turn positive and sell your coins at a higher price which you buy from the dip. The critical takeaway for newbies, don’t use the grid trading bot with the coins you don’t know. If it keeps falling and doesn’t bounce back, then you’ll have a loss in this case.

How much can I earn with a Grid Trading Bot?

There’s no guaranteed profit for using a grid trading bot. It’s not a magic no-brainer strategy, and that’s rule number one you should keep in mind for every crypto trading bots out there. Every trading bot has its principle, advantages, and disadvantages. Having this question in your mind, just like asking, does invest in Bitcoin guarantee any profit? One of the best practices using a grid trading bot is to help retail investors not to be shaken out from the highly volatile market. If you always feel anxious when the price surges or dumps, try to read this blog post, revealing how to fight against market manipulators with grid trading bot.

Can I start the bot with $100?

The minimum investment of the grid trading bot depends on the minimum order size of the exchange. Let’s say if you’re trading BTC/USDT with $10 minimum order size for each order, then around $1000 is needed for a grid trading bot with 100 grids. It might be too high for some traders who want to give it a try without risking too many funds. One of the best pairs to start with would be mBTC/USDT on the Pionex exchange. mBTC stands for milliBitcoin, which means 1000 mBTC equal to 1 BTC. You’re able to use less than $100 for your grid trading bot on Bitcoin with the following parameters. mBTC settings:

  • Upper limit: $100
  • Lower limit: $10
  • # of Grids: 150
  • Minimum required balance: $60

What’s the difference between Infinity Grid Bot and a regular Grid Bot?

For using a grid trading bot, you should set a price range for the bot. The bot will sell all your holdings (in the bot) to the quote currency if the price exceeds the upper limit of the range, making some of the traders feel bad in the bull market. The first solution is to set an ultra-wide range for the grid bot, and the second option is to use the infinity grid bot, which doesn’t have an upper limit but still performs a similar strategy to Grid trading. For a more detailed explanation between a regular grid bot and an infinity grid bot, please refer to this post.

4 Comments

  1. All your image links are currently broken, FYI

  2. Will you add more grid in the future? 999 grid may capture more profit in a wide range

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