How Can We Help?

< All Topics
Print

What’s the risk of using Grid Trading Bot?

All trading strategies have risks, and even though Grid Trading is one of the low-risk strategies, you need to know them while using a GRID Bot.

  • If the price goes down and never comes back up, which (especially on small market cap coins) is more often than you would think. In such a case, even the best grid bot in the world wouldn’t make profits. So we recommend you start a bot with BTC or ETH.
  • If you do not set your bot’s configurations effectively (for example Profit/grid must be greater than the size of the commission) or if you don’t have essential order types such as stop-limit orders setup for market triggers, then you could end up losing 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.
  • Never put more money into it than you could afford to lose. Initiate with a low amount, then gradually increase it once you grow more confident in using the bot and what settings to choose.
Previous What happens if the price crosses my upper and lower limit?
Next Why can’t I release my profit while I have some grid profit with the bot?
Table of Contents