In this article, you will learn what is the Classic bot strategy and when is the best time to apply it in automated spot trading.
Classic Bot Explained
The Classic bot always buys and sells a fixed amount of the base currency per order to maximize the return from each completed trade due to a progressive increase in the volumes as the price goes up.
Below is an example of the LTC/USDT grid. The Classic bot has equally distributed base currency amongst all grid levels so that at each level it buys and sells 10 LTCs. If the price falls, it will purchase 10 LTC at each level. And in the opposite, if the price rises, it will sell 10 LTC at each level.
When to use Classic strategy?
The best time to use the Classic bot strategy would be when you expect the market to have a strong uptrend. On the price rally, the Classic bot has statistically proven to be more successful than the other strategies due to its investment distribution logic, which achieves a better market exposure as the price goes higher (The Classic bot buys a fixed number of coins and hence increases the total amount invested on the rally).
Want to know more about the Bitsgap's bot? - Crypto trading bot