The Grid strategy is one of the most used strategies in crypto and forex trading. It works with postponed limit buy and sell orders in predefined price intervals. The price range you choose will be divided into multiple levels, which creates a grid full of orders. This is why we call it the grid strategy.
Our grid bots work according to this strategy, they keep generating profits from any market movement while you are away from your computer. All the grids are interchangeable, for every completed buy order, the bot will create a new sell order above the executed price, and vice versa. All your trades will be managed by the Bitsgap platform.
How can I make profits with this strategy?
The counterintuitive thing about the grid strategy is that the price of a coin has to go up and down, so it sells when it’s high and buys when it’s low. Instead of spending hours studying charts to profit from market moves, grid bots will buy low and sell high for you. They make consistent profits without the use of any complicated algorithms but simply work off of the grid parameters that you assign to them.
Risks of the Grid Strategy
There are always some risks involved when you let this strategy be automated especially in unfavourable market conditions. A sudden price spike or drop may and will affect your results. To protect your investment, you can use either the Stop Loss or the Trailing feature.
However, grid trading offers one of the easiest and time-tested trading approaches. In the long run, it can provide substantial results. It becomes less effective or even severe in strong trend reversals. And that's why it is important to understand when you want to create or stop your bot.