A 3commas grid Trading Bot allows you to enter a series of buy and sell orders within a specific price range. The grid trading bot recalculates the take profit price with each new buy order so that the profit of all your orders is equal to the TP parameters you set. If the price continues to decline after a buy order is executed, the bot will place another buy order in addition to the separate sell order. Whenever a buy order is triggered, the grid trading robots place a new sell order (at the take profit level).
How does the 3commas grid bot work?
A profit order will be placed after the grid trading bot has finished setting up. It will also place a second order at a lower price than the first one based on the percentage you set. You set a percentage of profit for the Extra order, and when it is done, it moves your original TP order (sell for long strategies, buy for short strategies) to a new place.
This is because the bot with an average cost in dollars moves the original TP order to a new place based on how much money you want to make and how much money you are prepared to lose. There is a field called “Take Profit.” This field shows how much money the bot with an average value in dollars will sell coins for and then close the deal when the price rises. There will also be a second order below the take profit one.
The difference between Grid bot and DCA
As long as the price fluctuates within the price range you set, a series of buy and sell orders will be placed, allowing the web trading bot to buy low and sell high for you. When your sell order is complete, the grid bot immediately places another buy order at a lower grid level. The difference between Grid bot and DCA is that instead of placing one order for all purchases in DCA, Grid bot places a sales order for each order.
Lower returns with more deals, or fewer deals with higher profits
You should be aware that the more meshes you create, the more operations will take place on the mesh. With Grid robots, you will have to choose whether you want lower returns and more deals or less business but higher profits. In fact, you can take more than two hundred trades to make a small profit over a certain period of time, or be more patient and make swing trades with Grid trading.
Even if you have to move the grid down (potentially selling at a partial loss), you can still make a profit after a few more days of trading on the grid. If everything is planned well and the price is in line with expectations, you can easily double the network’s daily profits by taking a riskier but faster approach.
If the price stays on the grid and bounces, you will continue to make this small profit, and after a while, it, as well as any price recovery, will fully compensate for the initial “losses” of the bot. Since the bot makes a profit between each pair of grids, and not on the entire transaction (as with the DCA bot), the price can drop by 20%, but if the price stays in your grid, you will still make a small profit on the next increase. , one%.
Generate profits when you are away from your PC or smartphone
Like DCA, a 3commas grid bot can help you generate potential profits even when you are away from your PC or smartphone, so you can trade 24/7 without having to be online. You can trade on the Grid manually or automatically with these automated robots. This way, their bot will take care of everything, like filling your order, so you don’t have to be on the platform all night watching your trades to see when you make money from them.
The bot will analyze your market movements, divide your account balance into small portions, and place buy and sell orders without your involvement. The maximum order price is an optional field that sets the limit at which the bot will not start a new trading cycle.
Make a few buys and set limit orders on the grid lines around the current price. Grid trading provides profitability whenever the sell price exceeds the buy price during a sideways price movement by automatically executing low buy orders that lead to high sell orders, eliminating the need for market forecasts. The Grid Trading strategy is one of the best methods for traders looking to take their first steps towards automation as it can work in almost any market, under any conditions, 24/7, and can be configured for almost all times.
Grid bots work best in a sideways market
The grid trading strategy uses the most basic trading concepts (buy low and sell high, making money on the spread), so it can be applied to almost any market and actually make a profit, regardless of market trends or behavior. Grid trading will create orders at gradually rising and falling prices in order to profit from market volatility by understanding market dynamics.
The grid can be set up for the short term, making hundreds of trades per hour to make small profits from small daily changes, or for the long term, pick a large range and let it run for a few months to profit from each trend change plus enough profit. Grid bots work best when a particular currency pair is in a range with no clear uptrend or downtrend for a longer period or in a sideways market.