In this article you will learn how the scalper trading strategy works and how it is different from other bot solutions.
The scalping strategy is created to maintain high-frequency trading from the current price fluctuation. As long as the price stays in the scalping range, the bot will constantly complete more trades which will accumulate significant amount of profit in short period. At the same time, the cost averaging feature will compensate any price drawbacks or market crashes.
How is it different from a regular grid bot?
The main features of the scalping bot are based on simplicity and fast decision making:
- You don't need to configure the bot settings because the system identifies key grid levels where the scalping must be executed.
- The number of grids is permanent and unchangeable. By default, the Scalper bot creates 200 orders, with majority centralized around the current price to ensure high-frequency trading = (scalping range).
- Rest of the grid orders are set far below the initial price with gradually increased price intervals = (cost averaging).
- Trailing up is enabled by default - it will always follow the price and move scalping range together with cost averaging range, if the price moves above the original range.
- The bot places orders based on the value of the quote currency as opposed to the classic bot where we use a fixed amount of base currency per order.
The grid technology that is being used helps you to set both limit sell and buy orders within a minimal distance to each other (scalping range) and also keep open additional orders to minimize the impact of the strong market trend.
This allows you to get an advantage from every small market step and significant market swings.
Scalper Bot in Action
The picture above shows the high-frequency trading of the Scalper bot. As the price moves upwards, the bot generates the profit by selling the base of the cryptocurrency trading pair. And in a situation of the market crash, the bot compensates the total loss as it still keeps making profits from reversals. This way, we offset the negative value change effect.
There are two main principles we wanted to include in the Scalper bot:
- The automated profit maximization in short term from the current price fluctuation.
- Loss compensation in the downtrend (up to -40% from the starting price). The more severe the market crash is, the more intense the loss compensation from the bot is.
Please check our other articles for more detailed information about the scalper bot and how best to use it: