How to Use WunderTrading Grid Bots?

The crypto industry is evaluated at just under $1 trillion after the long winter that caused many markets to contract significantly. However, retail traders using strategies like GRID and DCA managed to not only stay afloat but make notable profits by using short-term volatility and using different financial instruments. How can you use a GRID trading bot to a great effect?

One of the best providers of automation solutions in the crypto industry is WunderTrading. It is a vendor that offers a rich selection of interesting investment products based on using the power of cloud computing and interoperability within the crypto sphere.

What is a crypto GRID trading bot?

One of the most popular strategies in the crypto community is DCA buying. DCA stands for distributed cost average and aims to reduce the average price of assets that you add to your portfolio. If you are planning to purchase tokens and hold them until they appreciate, using DCA is a great way to reduce expenses.

When you use the distributed cost average approach, you place a buy order and wait. If the price goes down, you place another buy order. The cycle continues until you run out of money or accumulate enough assets. DCA is a powerful tool in your arsenal if you want to invest conservatively.

GRID bot uses the same approach but also places a sell order right after placing a buy order. This approach allows you to stay profitable (in theory) even during significant downtrends since the market will try to correct itself at any given opportunity. Crypto GRID bot trading is a great choice for people who want to make small gains consistently and try to invest conservatively without reducing trading operations in general.

This product is offered by WunderTrading, one of the industry-leading automation vendors in the crypto domain. The platform has a rich selection of products:

• DCA bots perform the distributed buying strategy automatically without your involvement. If you need to slowly accumulate BTC or ETH, you can simply set up a bot and add funds to your balance on the CEX you trade on.
• GRID bots use the approach described above to generate small gains regularly and protect you from significant risks by placing stop loss and taking profit conditions according to instructions. You can run several of them at once.
• You can also engage in social trading. The marketplace has many talented traders performing quite well. Bots will copy their orders and allow you to reach the same success as some of the most profitable investors on various platforms including Binance, FTX, KuCoin, and many more.

A good thing about this platform is that it is integrated with many popular crypto exchanges. If you want to run a Binance GRID trading bot, you will be able to because this exchange can be effortlessly connected to the WunderTrading platform. Binance is one of the biggest CEX websites in the world with an impressive 16% market share and over $76 billion in daily trading volume even during the crypto winter.

Using the best GRID trading bot

WunderTrading offers a flexible solution that comes as a preset template. You can simply choose an asset on an exchange that you are using and launch the GRID strategy. However, we strongly recommend you adjust settings according to your preferences. Here are some parameters that you should pay attention to:

• The reference price for take profits. You can choose the size of profit you want to take and the referential point from which it will be calculated. You can use the entry point or the average price of purchases just like in DCA.
• Choosing the GRID count. You need to specify the number of entry orders that you want to allow the bot to make. Note that the bot will place them and wait until it can liquidate them on the market. Only when the last entry point is liquidated, it will start the cycle over.
• Choosing the order size. Depending on your capital, you can reduce or increase the size of a single order which is a good way to use your funds efficiently without risking everything. Whether you want to place a series of small orders or want to use just 3 — 4 entry points depends on the fees that you have to pay to the exchange.

You can also create a riskier and, potentially, more profitable strategy by using the multiplier that will increase the size of consecutive orders that were not yet liquidated. It is a good way to “double down” during market volatility to try and capitalize on short-term swings.

Optimal settings for this strategy

When it comes to the best crypto for the GRID trading bot, you should take a closer look at assets that are considered volatile. GRID strategies rely on price swings and regular corrections. It also means that you need to work with an asset that has sufficient liquidity to support automated trading. Tokens like Cardano (ADA), Ethereum (ETH), or Bitcoin (BTC) fit this role perfectly.

On the other hand, using coins like LUNC that are often pumped and increase in price due to hype should not be used because when they fall, they just force the bot to place multiple buy orders but never recover leaving you with significant losses across multiple orders.

Choosing the right exchange is also crucial to your success. Popular CEX platforms that have enough liquidity for your trading operations should be prioritized. A KuCoin GRID trading bot will work much better than the one working on 50X (if it is even possible) that sees average liquidity under 190 regularly. Binance, FTX, OKX, KuCoin, and CoinBase are good choices.

Choose companies that provide excellent automation software allowing users to build a well-performing GRID bot trading strategy. WunderTrading is a great destination for people who are interested in using bots in trading.