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Introduction to grid trading strategy

In this article, you will find the detailed introduction into grid trading strategy, best market conditions, and how the smart crypto bot can take advantage over the price fluctuation.

Grid Trading Strategy

Trading bitcoin and other cryptocurrencies with automated solution become very popular because it guarantees 24/7 trading activity. It allows traders to manage their risks without emotions and follow a predefined trading pattern.

However, it is essential to know that the grid trading strategy does not guarantee a stable income in all market conditions. If you want to successfully use the cryptographic grid trading strategy, you must understand the fundamentals of commerce and the current phase of the market.

General concept

Grid trading is a type of strategy that generates gains from market movements in a specific price range. It loses its power in a strong commercial market when the pump or landfill occurs. The network trading technique explores to benefit from the natural price volatility in the markets by opening purchase and sale orders regularly at fixed intervals above and below a market price.

The advantage of grid trading is that it requires little forecast of the market direction. In addition, it is easy to automate this strategy and execute it continuously. The biggest drawback is the sudden drop in prices if the stop-loss orders have not been fulfilled. However, grid trading offers one of the easiest and most proven commercial approaches if the parameters are set correctly. In the long run, it can provide substantial results.

Grid is using the hedging method by opening long and short positions. The general idea is that with continuous purchase and sale orders, all negative businesses can be covered by profitable ones.

Market conditions

To understand the advantages and disadvantages of the Grid trading method, let’s look at two typical market conditions. First, when the market is in a strong phase of negotiation, and the other, when we can see an established range.

There is no 100% confirmation of the current market condition because it may be different from the individual perspective. For example, the market condition within 5 minutes on a 1-hour chart may be different from the price movement within the 1-day period of last month.

Ranging Market 

The best results from the grid trading can be achieved in a swinging or consolidating market where price continues to fluctuate in a specific price range.

Trending Market 

This method loses its strength if the price starts to decrease. If the downtrend continues with few setbacks, the combined losses of all open positions will grow exponentially more.

Establishing a comprehensive stop loss exit strategy executed on time will prevent your account from suffering uncontrolled losses.

Smart Crypto Bot

This is the decade of smart technology. Smart Crypto Bot is a robust automated cryptocurrency trading program in the market. It’s a graphical representation of your trading style and parameters which makes it much easier to use. Smart Crypto Bot is all about the use of smart, complex and intelligent algorithms to trade your crypto coins automatically. Smart Crypto Bot is a powerful crypto trading bot that trades for you either you are sleeping, working at your office or enjoying with your family. This cutting-edge-technology helps you to become a better trader and save time while enjoying crypto profits the easy way.

Smart Crypto Bot software is compatible with several trading platforms to be able to exchange anywhere at the best possible time. We offer four different deals at smart crypto bot shop including 7 days’ free trial. Subscribe to our Bronze, Silver or Gold starter packages where you can trade up to your desired number of coins as low as €24,00 per month.

If you are interested in trading Bitcoin or any other crypto coins available in the market, by using SmartCryptoBot chances are that you will be more profitable.


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