Grid Trading Bot uses market fluctuations to generate profits. By setting the price range and adjusting the grids, you can benefit from the bot provided the price remains within the range. The bot is one of the 16 trading bots available on the Pionex platform. It is a free bot that is popular among traders for its effective design.
About Grid Trading Bot
The grid trading bot is appropriate for working on a fluctuated sideways market. It ensures an easy process of gaining stable and passive returns. Further, there is a low-risk present with its use, especially in a volatile market.
Grid Trading Bot: how does it work?
The bot helps you to execute the grid strategy effectively. The grid approach is unlike other strategies as it works best in a ranging sideways market without any clear direction. Any price fluctuation in the market is exploited by the bot and it works effectively when there is no clear down or uptrend for a long span. The profit you make with the bot is directly proportional to the frequency and volume of fluctuation.
How to set up Grid Trading Bot?
Here are the steps needed to set up the bot:
- Visit the Pionex site
- Choose the Grid trading bot from the list of bots available on the site
- You can choose from the two types of grid bots namely the Use AI strategy and Set Myself approach
- With the AI Strategy, you need to pick a set of parameters that have been calculated after backtesting the approach for the previous 7 days
- Choose the recommended price range
- Click on ‘Create’ option
- The bot will begin trading and generate passive income
- For the ‘Set Myself’ option, you need to input parameters like the upper and lower price limit, number of grids, and the investment. The trigger, SL, and TP price are optional parameters
Key takeaways
Some of the significant features of the bot that make it stand apart from the other trading tools in the market are:
- It does not need any indicators, algorithms, or signals for using it.
- The grid approach is a proven and profitable approach that has been used by traders for several years.
- Due to the volatile nature of the crypto market, the grid bot is an apt tool to use.
- You can make a profit from any change in direction as it works in all fluctuating market conditions.
- When you set a broad range and for a longer term, you can have an excellent average price for buying and selling.
User interface
The website is user-friendly making it easy for users to navigate. The bot features are easy to access and the trading process is very efficient and does not need prior experience for use.
Trading strategy behind Grid Trading Bot
The approach involves setting up the buy and sell orders in a pre-defined price range by creating a grid formation. You need to choose the price range and the number of grids you need inside the range. The price range is split into smaller ranges to enhance the probability of triggering more trades. With a higher number of grids, the trade frequency will be higher as the width of the grid is reduced. But the profits are also reduced. For bigger profits, you need to make fewer trades.
How profitable is Grid Trading Bot?
As per the vendor, the bot is one of the popular bots of the platform as it is effective in a fluctuating market. However, there are no verified results of the performance present.
Safety and security of Grid Trading Bot
The vendor claims that the platform has had a secure and safe service for 1060 days. The company uses security measures such as firewalls, data encryption, physical access controls to its data centers, and information access authorization controls.
Customer support
For support, the vendor offers an FAQ section, Video tutorials, a blog, and links to Telegram, Discord, Twitter, Facebook, and Line.
Reputation
As per the info on its social media pages on Twitter, the platform has been functioning since 2019. It is based in Singapore.
Team members
Team members of the platform include Dave Yeh, Chris Costello, Christine Fish, and Josey Wyatt.
Exchange compatibility
The bot is integrated with the Pionex exchange. Pionex works with Binance and Huobi for liquidity aggregation.
Grid Trading Bot pricing: is it worth your money?
The platform charges transaction fees of 0.05%. The bots are free to use and the withdrawal fee is based on the token or crypto coin you want to withdraw.
Grid Trading Bot review: upsides and downsides
| Upsides | Downsides |
| Free bot | The strategy will result in a loss if there is a prolonged price fall as in small market cap coins |
| Low commission fee | Needs proper stop-limit orders to prevent huge losses |
| Profitable approach |
Grid Trading Bot review: final remarks
Grid Trading Bot is a profitable bot provided you use it in a sideways fluctuating market condition. The user-friendly navigation, free-to-use bot, good security, and low commission fees are benefits of using this bot. When used with caution and in the appropriate market condition, the bot can generate passive income.
