Crypto Trading Bots | Gate.io (2024)

How Grid Bots Work?

Grid Bots is to keep buying when the price is low and then keep selling when price is up. In this way, when the price fluctuates up and down, you can keep buying low and selling high within the grid range to earn profits by repeated actions.

Why is it called Grid?

Grid Bots divide the price of a portfolio into a grid like a fishing net, with a highest price and a lowest price. Then the entire grid is divided into several equal subgrids of different prices, with the bid and ask price of each subgrid line. Then when the underlying price reaches a certain line of the grid, the bot will auto buy or sell.

Smart Rebalance

Smart Rebalance is a type of trading bot derived from the Coin-M investment mindset.

What is the Coin-M investment?

When investors are bullish on the long-term development of the blockchain industry and believe certain coins (such as BTC and ETH) have long-term holding value, they will trade with the purpose of increasing the holding of these coins, rather than focusing on the short-term rise or fall of the USD value of their holdings.

With the passive trading mode of Smart Rebalance, you can gradually increase your holdings as the price fluctuates. Specifically, in your portfolio, you set a target asset allocation, for example, 40% for BTC and 60% for ETH. When the allocation percentage becomes 45% for BTC and 55% for ETH due to price fluctuations, the bots will auto sell some BTC to buy ETH, bringing back to the target asset allocation.

Is it really possible to increase holdings?

Example

Suppose when you started your smart re-balancing portfolio, you had 1 BTC and 20 ETH, and the BTC price was $10,000 and ETH price was $1,000; Your asset allocation was 33.3% for BTC and 66.7% for ETH. Later, the price of BTC fell to $9000 and the price of ETH fell to $500. Smart Rebalance was activated to start to buy and sell in order to bring the asset allocation back to the 33.3% for BTC to 66.7% for ETH. After the rebalancing, you had 0.7037 BTC and 25.3333 ETH; Then the price of BTC rose to $11,000 and the price of ETH rose to $1200. As the asset allocation changed, Smart Rebalance was triggered again to auto buy and sell to restore the preset ratio. The number of BTC and ETH would become 1.1558 and 21.1893 respectively

Something magical happens! Compared to the very beginning, the prices of both BTC and ETH increases, so does the number of BTC and ETH you hold!

Spot Signal Tracing

If you have rich trading experience and tend to use technical indicators to capture and predict market movements, you can use signal tracing solutions to create an advanced automatic bot. Without programming, you can easily handle programmatic trading logic, saving your time and effort spent on monitoring the market.

As spot trading is limited to going long, the signal tracing indicators commonly used in spot trading include MACD, MACD-RSI, Double Moving Average, and Double Moving Average-RSI.

Spot Martingale

When you think there will be a rebound in a downturn, Martingale Bots can be something you need. The core idea is to buy in batches during a downturn to gradually add positions and lower the average cost. Once the price rebounds, the coins bought earlier will be sold in one go to take profit.

E.g. If you plan to buy whenever the coin price falls by 1%, with a multiplier of 2 and DCA orders of 5, the bot will place an order to buy 2 shares, 4 shares, 8 shares, 16 shares, 32 shares respectively when the coin price falls to 99%, 98%, 97%, 96%, 95% of the initial price. When the price falls by 5%, the average entry price of your position will be 95.96% of the initial price; it will only take a 1.01% rise to break even.