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Bibox Grid Bots for Fluctuating Market

Author: Queent, Created: 2020-12-17 11:40:09, Updated: 2020-12-17 12:01:12

Bibox Grid bots allow you to set up a grid, and within this price grid, it will layer buy and sell actions in this specified range. Not every chat is a good fit for a grid bot. Grid bots are for charts that are travelling within a channel, within a tied trading range. As the market price fluctuates, grid bot will automatically buy at a lower price and sell at a higher price. There’s no need to monitoring the markets once you have parameters set up. Now Let’s take a look at how we make use of Bibox’s grid bots step by step. A total of 4 parameters are required for grid trading: Entry price: The entry price (P0) is the real-time cryptocurrency price(Pr) when you create the trading bot. Lower limit price (Pl) : Pl is the lowest buying price for executing grid transactions, below which no further bid orders would be made. Upper limit price (Ph): Ph is the highest buying selling price for executing grid transactions. When the market price goes beyond Ph, no ask orders would be made. Users should be aware that the Upper limit price should be at least 1.1 times the lower limit price to be executed on Bibox. Grid width(width): Bibox grid bot is a proportional grid. Grid width is the proportional distance of two grids, a value in the range of 0.2%-20%. Now let’s walkthrough grid bots with BTC/USDT as the example Let’s say we enter the market when BTC is 18909.21 USDT (Blue Line in Figure 1) and set the Lower limit price (Pl) and upper limit price (Ph) to be 18303.05 and 20135.56 respectively (Dash Line in Figure 1), with Grid width(width) to be 0.5%. Table 1: BTC/USDT Grid Bots Parameters img Bibox trading bot will calculate the number of ask and bid orders as well as the corresponding prices based on the above parameters. These orders are listed in Figure 1. Your total investment amount would be divided equally for each bid and ask orders, lets take 0.001BTC as an example. img As we can see, 12 ask orders and 6 bid orders are generated. The system will automatically buy 0.012 BTC at 18909.21 USDT so that if the prices goes up, you have enough BTC to be sold, for the 12 ask orders. Since we set the grid width to be 0.5%,the first bid order would be at the price of 18909.21/(1+0.5%) while the second bid price would be 18909.21/(1+0.5%)², so on and so forth. As of the ask price, the first ask order would be 18909.21*(1+0.5%), with the second being 18909.21*(1+0.5%)²,… Table 2: Original Bid Orders img Table 3: Original Ask Orders img As long as the listed orders are executed, the bot will put a new order. For example, as we enter the market, BTC’s price dropped to 18815.13, the bot executed the first bid order and had a new ask order at the grid right on top of it, which is 18909.21. If the price continued to go down to 18721.53, our second bid order would be executed and a new ask order at 18815.13 will be placed. Same story goes on when the price went further down to 18628.38, the bot executed this bid order and placed a new ask order at 18815.13. As BTC price goes up to 18815.13, the bot executed the ask order we just placed. At the same time, it would place at new bid order at the gird right under it, which would be 18628.38. BTC’s prices continued to rise, the bot constantly executed the ask orders at higher price and had new bid orders placed. It runs and runs, and continuedly sell at high price and buy at low price. As we can see, the entering price is very import in grid bot trading. Along with the range and width, the number of originals ask orders and bid orders are decided. And that determines how much BTC we bought when we enter the market. The width of the grid is of significantly import for the frequency of order executions. On one hand, if it is too width and the market price fluctuate in a small range, you may not be able to seize the change for buying at low and sell at high. On the other hand, if the width is too small and the market price continued to climb, you might miss the opportunity to maximize your profit. All in all, the four parameters and the market trend are the keys to grid bot trading. With an understanding of grid bots mechanism, I wish that you can play with them well and achieve superior return. You may try Bibox grid trading here: https://www.bibox.com/v2/strategy_bot Join Bibox Trading Bot Group and discuss with expericed grid bots users for more advanced parameter settings: https://t.me/bibox_trading_bot


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