In this article, you will learn what is the Sbot bot strategy and when is the best time to apply it in automated spot trading.
Sbot Bot Explained
The SBot has originated from the Classic bot and the crucial difference is in its investment distribution logic. The SBot always sells and buys a fixed volume of the quote currency per order. Below is an example of the LTC/USDT grid. The SBot has equally allocated the investment across the grid with buy and sell orders so that the investment sum is always $100.
This implies that as the price falls the bot can now buy more LTCs because its value has depreciated and hence you can afford more coins having 100$ at your disposal. Conversely, when the price rises, the number of coins the SBot can sell decreases because the limit is only $100 per grid level. The allocation with an approximation is displayed on the chart below.
When to use Sbot strategy?
The SBot strategy can be effectively utilized if you expect the price to swing within a horizontal range. On the sideways market, the SBot has statistically proven to be more successful than the Classic bot due to its investment distribution logic, which uses the DCA method (dollar-cost-averaging) can also generate an extra-base currency for your account.