Did you know that the cryptocurrency market is highly volatile and subject to rapid fluctuations? However, there are times when the market moves in one direction for an extended period, presenting a unique opportunity for traders. This is known as a one way market, which occurs roughly 20% of the time in the crypto market. In this article, we will introduce a trading strategy that can help you navigate and profit from a one way market: the Infinity Grid Bot. With its advanced features and automation, Infinity Grid can help you avoid missed opportunities and take advantage of favorable market conditions. Join us as we explore the key benefits of Infinity Grid and learn how it can enhance your trading performance.
- 1 Making the Most of a One Way Market
- 2 Why You Can Profit With Infinity Grid in a One Way Market?
- 3 What Is Infinity Grid? How Does Infinity Grid Work?
- 4 How to Set Up an Infinity Grid?
- 5 Timing Tips for When to Use Infinity Grid
- 6 3 Benefits of Infinity Grid Bot
- 7 3 Drawbacks of Infinity Grid Bot
- 8 Conclusion
Making the Most of a One Way Market
Bitcoin’s historical data and market trend demonstrate that it frequently experiences sideways movement within a particular scalping range for extended periods. For instance, between December 2021 and May 2022, BTC underwent a sideways market in the 35,000 to 45,000 scalping range, as illustrated in the yellow circle. A Grid Trading Bot can effectively manage such sideways markets. Following a brief drop, BTC promptly moves into the next sideways market of a different scalping range.
If you are a long-term investor who is not concerned about the price fluctuations of Bitcoin, the Moon Bot may be a suitable option. As the example above, the Moon Bot could operate within a designated scalping range of 7,000 to 70,000 and adheres to a “buy low and sell high” strategy to execute arbitrage, provided that it does not exceed the upper and lower limits.
However, it is impossible to accurately predict future market movements, which can make it difficult for investors to capture maximum profits during a spike and to avoid selling all positions too early, thereby missing out on potential profits from a trend. To address this challenge, the Infinity Grid is designed to provide a solution.
Why You Can Profit With Infinity Grid in a One Way Market?
Pionex named the Infinity Grid because of its infinite potential in capturing the entire market trend. The Infinity Grid has no upper bound, and its algorithm ensures that you always have coins to sell while sticking to a decent trending profit. If you want to avoid missing out on the potential profits of the entire trend, you should consider trying the Infinity Grid.
Compared to Grid Trading Bots, the coverage of the scalping range is limited due to the preset upper and lower limit prices. During a one way market, the Grid Trading Bot may easily exceed the upper limit price, resulting in the selling out of all your coins and the halt of trading. As a result, you may miss out on potential profits from market spikes. Although the market may return to the scalping range after a brief pause, you may miss out on a bullish or surging market if you have no remaining coins or positions.
This is precisely where the Infinity Grid comes in. As a premium version of the Grid Trading Bot, the Infinity Grid addresses the limitations of a fixed scalping range by offering a perfect solution to price breaking through the upper limit. The Infinity Grid Bot operates 24/7 and employs a “buy low, sell high” strategy that keeps the asset amounts consistent while the price continues to rise. For example, in the case of BTC/USDT, the Infinity Grid Bot sells BTCs as the market continues to surge, but ensures that it always holds an equivalent amount of BTC to the original USDT. If you require a deeper understanding of the Infinity Grid, let’s explore it in more detail.
What Is Infinity Grid? How Does Infinity Grid Work?
The Infinity Grid Bot is a premium version of the Grid Trading Bot, designed to solve the issue of exceeding the scalping range. When an order is created, a portion of your investment is used to buy coins, and as the price rises, the bot sells the coins that exceed the initial value at each placed selling order. If the price keeps rising, the Infinity Grid Bot will keep selling, but it will not sell all of the coins. conversely, when the price drops, the bot will buy coins separately until you run out of remaining funds or the price drops lower than the lowest price you’ve set. Overall, the core value of the Infinity Grid is to always maintain the fixed value of the assets in your possession.
To make it more concrete, let’s take an example:
Suppose you create an Infinity Grid Bot when Bitcoin’s price is 10,000 USDT, and set the profit per grid as 1%. When the price rises to the first grid, the value of the BTC you hold becomes 10,100 USDT, and the Infinity Grid Bot will sell Bitcoin worth 100 USDT. Although the amount of Bitcoin you hold decreases, the total value of Bitcoin in your portfolio will always be 10,000 USDT during an upward trend. Similarly, when Bitcoin’s price falls, the Infinity Grid Bot will use 100 USDT to buy Bitcoin. Although the amount of Bitcoin you hold increases, the total value of Bitcoin in your portfolio will still be 10,000 USDT as the price goes down.
Infinity Grid is specifically designed for one way markets. In a rising market, the bot ensures that you hold a fixed-value cryptocurrency with coins that won’t sell out, allowing you to maintain your position in the upward trend. In the long run, you can use Infinity Grid to arbitrage that is likely to move upward. The bot’s profit performance improves as the market surges. Additionally, there’s no need to worry about the price exceeding the upper limit price of the Infinity Grid Bot. (Cuz there is no upper limit price)
How to Set Up an Infinity Grid?
Creation Steps – APP Version
- Open the Pionex app and select the “Trade” button located at the bottom of the screen.
- Navigate to the “Bot” section located at the top of the screen.
- Click the “Create” button.
- Select the option for “Infinity Grid”.
- Choose a cryptocurrency and configure the relevant parameters for the Infinity Grid. Once complete, you will have successfully created your bot.
Creation Steps – WEB Version
- Log into your Pionex account on pionex.com and click the “Trade” button located at the top of the screen.
- Navigate to the “Bot” section located on the left side of the screen.
- Scroll down to Advanced grid bots and select the option for “Infinity Grid.” Then click the “Create” button.
- Select a cryptocurrency and configure the necessary parameters for your Infinity Grid. Upon completion, your bot will be successfully created.
Customize Your Infinity Grid
Pionex offers an AI strategy for Infinity Grid that analyzes market data from the past 30 days to recommend the lowest price and a fixed 0.6% profit per grid parameters. If you opt for the “AI strategy,” you only need to determine the total investment.
If you opt for customizing your Infinity Grid, you will need to set three parameters:
- Lowest price (Lower limit)
The lowest price parameter is used to set the lower price limit at which the Infinity Grid Bot will execute its arbitrage strategy, which involves buying low and selling high. The bot will create a sequence of buy and sell limit orders and continue to execute this strategy as long as the market price remains higher than the lowest price set by the user.
- Profit per grid
The term “profit per grid” refers to the profit rate on each grid sold (fee deducted). It represents the size of your grids. (Many transactions with small profits, or few transactions with huge profits.)
- Investment – USDT only
Only use USDT to create the Infinity Grid.
- Investment – Both
You can invest with both coins in your account at the same time to create the Infinity Grid. (For example, when you select the BTC/USDT trading pair, you can simultaneously invest with BTC+USDT to create the bot.)
To ensure that the Infinity Grid operates correctly, a minimum investment of 50 USDT is required, taking into account the precision of currency price and the minimum tradable amount. However, the actual investment amount may vary based on the set parameters for the lowest price and profit per grid. It is possible to adjust these parameters to meet your specific investment needs.
Tutorial for Infinity Grid Bot Parameters
- Investment: The funds invested to run the Infinity Grid
- Total profit: Grid profit + Unrealized profit
- Unrealized profit: (Current price – Average buying price) * number of coins held
- Grid profit: Grid bot buys low and sells high and makes profits from arbitrage
- Grid annualized: [(Grid profit/investment) / (Lasting time/365)] * 100%
- Total annualized: [(Total profit/investment) / (Lasting time/365)] * 100%
Timing Tips for When to Use Infinity Grid
Suitable for Long-Term Optimistic Investment Targets
The Infinity Grid has no upper limit price, providing greater growth potential after creating the bot at the current price. As a result, the Infinity Grid Bot can operate for a longer period than Grid Trading Bot, eliminating the need to create new trading bots due to prices exceeding the upper limit. If you have a long-term optimistic investment target or lack the expertise to analyze trends and prices but aspire to invest for an extended period, the Infinity Grid is a superior option compared to Grid Trading Bot.
Suitable for Investment Targets With Growth Potential and Positive Factors
In the cryptocurrency market, a one-way market only occurs 20% of the time, as various factors can lead to market changes. Due to the fast-changing and information-rich nature of the cryptocurrency industry, investment targets that align with current trends, feature innovative applications, or attract attention from investment institutions and celebrities, may experience a surge in price, leading to a one-way market. By monitoring the fundamentals and news of an investment target, an Infinity Grid can be operated at the optimal time to avoid missing opportunities for arbitrage.
Suitable for Entering the Market at a Lower Point
In cryptocurrency trading, it is difficult to predict future prices with complete accuracy, especially during times of market depression. In such scenarios, deploying the Infinity Grid can offer a strategic advantage. By HODLing onto the investment for as long as possible and capturing the rise in prices, the Infinity Grid allows traders to maximize profits without diluting returns through excessive trading.
3 Benefits of Infinity Grid Bot
- Higher Profit in a One Way Market
Infinity Grid Bot can generate higher profits in a one-way market or investment target with positive factors, thanks to its geometric width algorithms. With Infinity Grid, you can maintain a fixed value of assets in your possession, while earning floating profits from the entire trend by always having coins to sell.
- Tape-Free Arbitrage Profits for Long-Term
When the market is in a long-term upward trend or you have a positive outlook on a particular investment target, the Infinity Grid can be a powerful tool for generating arbitrage profits. By setting the lowest price, you can create an Infinity Grid that will automatically buy low and sell high for you, without the need for constant monitoring and analysis of market trends. With this approach, you can capture profitable opportunities without having to read the tape of the cryptocurrency market.
- Easy to Set Up the Parameters
The Infinity Grid Bot is designed to be easy to set up, even for those new to cryptocurrency trading. With just a few clicks, you can customize the bot to fit your investment preferences and risk tolerance. The user-friendly interface allows you to set parameters such as the lowest price, profit per grid, and investment. Then you can start using the bot to automate your trading strategy in a matter of minutes. Plus, the Infinity Grid Bot also provides an AI strategy, which not only recommends suitable parameters but saves you time.
3 Drawbacks of Infinity Grid Bot
- Has Requirement of Minimum Investment
In order to ensure proper operation of the Infinity Grid, a minimum investment of 50 USDT is necessary, factoring in considerations such as currency price precision and minimum tradable amounts. Furthermore, as the Infinity Grid has no upper price limit, it allows for a wider range of transactions, meaning that more investment may be required to ensure the smooth execution of trades. For instance, in the case of the Pionex BTC/USDT trading pair with a lower price limit of 23,000 and a profit per grid of 3.1%, a Grid Trading Bot requires only 3.8 USDT to operate, whereas an Infinity Grid requires a minimum investment of 50 USDT.
- Poor Utilization of Funds
Both Grid Trading Bot and Moon Bot enable the effective deployment of funds within a specific price range, thereby enhancing the utilization of funds. However, the Infinity Grid does not have a price range, which is a disadvantage, and it may result in idle funds as the bot maintains the fixed value of assets. This drawback is particularly noticeable in the sideways market, which accounts for 80% of the market time. Additionally, the Infinity Grid lacks a function for releasing profits, which leads to poor utilization of funds. The formula for calculating released profit includes the parameter of “upper limit price,” which is not available in the Infinity Grid. Therefore, investors cannot release profit from Infinity Grid for other investment purposes. To realize profits from Infinity Grid, investors must close the original Infinity Grid bot and create a new one. The Infinity Grid does not support add investment function, either.
- No Profit While Falls Below the Lowest Price
If the price falls below the lower limit price, orders will not be placed until the price rises above the lower limit price. In case a stop loss price is set, the Infinity Grid will terminate when it reaches. Similarly, if the take profit price is set, the bot will also terminate when it reaches the take profit price.
However, if the price keeps falling, the bot will keep buying coins to maintain the fixed value of the asset. This may result in negative floating profits as the investment is used to buy coins without the opportunity to sell for profit.
Hence, the above-mentioned are three drawbacks of using Infinity Grid. It is crucial for users to carefully evaluate the buying timing and thoroughly research their investment targets before employing the Infinity Grid strategy. Otherwise, there is a risk of holding a significant number of positions at a relatively high price, and missing out on profitable arbitrage opportunities.
For investors who are skilled in identifying market trends and are focused on the crypto market, Infinity Grid can be an effective tool for capturing profits in a one-way market with the entire trend. For those who are not adept at predicting future price trends but are willing to hold their investment targets for the long term, Infinity Grid can still be a useful tool for outperforming other investors. During the remaining 80% of the time in the sideways market, Grid Trading Bot and Moon Bot can work for you. By utilizing these trading tools in your portfolio, you can potentially maximize your investment profits.
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