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What’s the risk of using Grid Trading Bot?

Posted
Updated
ByEzreal

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.

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