Automated trading bots are powerful tools that help traders execute strategies with precision and efficiency. This guide provides an overview of the various automated trading bots available, detailing their functions, ideal use cases, and how to get started.
How to Access the Trading Bot Platform
Accessing the trading bot features is a straightforward process. Follow these steps to begin automating your trading strategies.
Step 1: Log In to Your Account
Visit the platform's homepage and locate the Login button in the top-right corner. Enter your registered email address or phone number along with your password to access your account. You can also log in by scanning a QR code with your mobile device.
Step 2: Complete Security Verification
If you have two-factor authentication (2FA) enabled, complete the required security check to proceed. This adds an extra layer of protection to your account.
Step 3: Navigate to Trading Bots
From the homepage, hover over the Trade menu option. A dropdown will appear; select Trading Bot from the list to enter the automated trading section.
Step 4: Explore Available Bot Strategies
Once on the Trading Bot page, you will see a variety of automated strategies available. These include Grid bots, DCA bots, Arbitrage bots, and Slicing bots, each designed for different market conditions and trader experience levels.
Overview of Available Trading Bots
The platform offers a diverse suite of automated trading tools. Here is a list of the primary bots and their core strategies:
- Spot Grid
- Futures Grid
- Smart Portfolio
- Spot DCA (Martingale)
- Recurring Buy
- Arbitrage Order
- Iceberg Order
- TWAP (Time-Weighted Average Price) Order
For beginners, Spot Grid, Futures Grid, Smart Portfolio, and Recurring Buy bots are the most straightforward to configure. Arbitrage, Iceberg, and TWAP orders are more complex and are generally better suited for advanced traders due to their intricate risk profiles.
Understanding the Spot Grid Trading Bot
The Spot Grid bot operates within a price range defined by the user. It places a series of buy and sell orders at predetermined intervals (grid lines) between a set upper and lower price bound.
- How it Works: When the price of an asset rises and hits a sell grid line, the bot automatically sells a portion of the holding. Conversely, when the price falls to a buy grid line, it automatically purchases more of the asset.
- Strategy Options: You can manually set all parameters or choose an AI-powered strategy that uses historical data to suggest back-tested settings. Manual configuration offers more control, while the AI strategy aims to optimize for potential profitability.
This strategy aims to profit from market volatility by repeatedly buying low and selling high within the chosen range. 👉 Explore more strategies for automated trading
Exploring the Futures Grid Bot
The Futures Grid bot applies the same grid strategy to futures contracts. Instead of trading the underlying asset, it buys and sells long or short positions in futures markets.
- Key Feature: This bot supports three distinct trading approaches: Long, Short, and Neutral strategies.
- Important Consideration: A significant difference from spot trading is the availability of leverage in futures, which can amplify both gains and losses. It is crucial to understand the risks associated with leveraged products before using this bot.
Utilizing the Spot DCA (Martingale) Bot
Dollar-Cost Averaging (DCA) is a strategy to reduce the impact of volatility by spreading purchases over time. The Spot DCA (Martingale) bot automates this process with enhanced flexibility.
- Core Function: The bot buys a specific asset at regular intervals or when certain technical conditions are met, averaging the entry price.
Advanced Features:
- Flexible Start Conditions: You can define technical indicators to determine the optimal entry time.
- Funds Reservation: The bot only reserves the minimum necessary funds initially, allowing you to allocate capital more efficiently.
- Continuous Cycles: The bot can be set to run indefinitely, using "safety orders" to buy during dips and restart new cycles after hitting profit targets.
The Dip Sniper and Peak Sniper Bots
These two bots are designed for precise market entry and exit.
- Dip Sniper: This bot is for traders looking to buy during a market dip. You set a target price, and upon expiry, a portion of your order is guaranteed to be filled at the lowest price reached during that period, helping you secure a better average entry price.
- Peak Sniper: The inverse of Dip Sniper, this bot is for selling. It guarantees that a portion of your sell order will be filled at the highest price achieved during the order's duration, helping you maximize exit value.
Both tools are designed to help traders capitalize on market fluctuations without needing to constantly monitor charts.
Managing Portfolios with the Smart Portfolio Bot
The Smart Portfolio bot automates portfolio rebalancing to maintain a target asset allocation.
- How it Works: You specify the desired percentage allocation for each asset in your portfolio (up to 10 different cryptocurrencies). The bot monitors the market value of these assets.
Rebalancing Triggers: You can choose between two modes:
- Scheduled: The bot checks allocations at regular intervals you set (e.g., daily, weekly) and rebalances if needed.
- Proportional: The bot only triggers a rebalance when an asset's allocation deviates from its target by a user-defined percentage (e.g., 5%). It sells outperforming assets and buys underperforming ones to return to the target allocation.
This strategy enforces discipline, helping to systematically sell high and buy low over time.
Automating Purchases with the Recurring Buy Bot
The Recurring Buy bot is the simplest form of automation, ideal for long-term investors practicing a pure Dollar-Cost Averaging strategy.
- Functionality: The bot automatically uses your USDT balance to purchase up to 20 different cryptocurrencies at fixed time intervals you choose.
- Benefit: It completely automates the accumulation process, requiring no ongoing effort once configured. This "set and forget" approach is a cornerstone of passive investing.
Advanced Trading Bots: Arbitrage, Iceberg, and TWAP
For experienced traders, more sophisticated bots offer specialized functionality.
- Arbitrage Bot: This bot seeks to profit from price discrepancies between different markets or instruments on the exchange. It creates "delta neutral" positions where a loss in one leg is offset by a gain in another, aiming to capture profits from the spread or funding rate payments. It operates in Funding Rate and Spread Arbitrage modes.
- Iceberg Order Bot: Large orders can significantly move the market price. Iceberg orders break a single large order into many smaller, hidden orders to minimize market impact and price slippage. This is essential for executing large trades in less liquid markets.
- TWAP (Time-Weighted Average Price) Bot: Similar to an Iceberg order, a TWAP strategy aims to execute a large order over a specified time period. Instead of breaking the order into hidden chunks, it executes parts of the order at regular intervals to achieve an average price close to the market's average over that time, reducing market impact.
👉 Get advanced methods for sophisticated trading strategies
How to Stop a Trading Bot and Close a Trade
Managing your active bots is simple.
- Navigate to the Bots tab within your trading dashboard. Here you will see a list of all your active automated strategies, along with details like their current performance.
- To stop a specific bot, click the Stop button next to it.
- After stopping, you will be presented with options. You can choose to simply hold the assets the bot acquired or immediately convert them all back to USDT to exit the position completely. Select your preference and confirm.
Once stopped, the trade will move from the Bots tab to the History tab for your records.
Frequently Asked Questions
What is the best trading bot for beginners?
The Recurring Buy bot and the Spot Grid bot are excellent starting points. The Recurring Buy bot is perfect for passive, long-term investing, while the Spot Grid bot offers an easy introduction to profiting from market volatility without requiring advanced technical knowledge.
Do I need a lot of capital to use trading bots?
No, you can start with a relatively small amount of capital. Many bots, like the Spot Grid or Recurring Buy bot, can be effectively deployed with a modest initial investment. The key is to ensure your capital is sufficient for the specific strategy and any minimum order requirements.
Can trading bots guarantee profits?
No, automated trading bots cannot guarantee profits. They are tools that execute predefined strategies. Their performance is entirely dependent on market conditions and the effectiveness of the strategy being used. All trading involves risk, including the potential for loss.
How much time do I need to manage a trading bot?
Once configured, most trading bots require minimal daily management. However, it is prudent to periodically check their performance and ensure market conditions haven't invalidated your chosen strategy. Advanced bots may require more active monitoring due to their complexity.
What happens if the market crashes while my bot is running?
The outcome depends on the bot's strategy. A DCA bot would continue buying at lower prices, averaging down. A Grid bot would be executing buy orders as the price falls. However, all bots are susceptible to significant market downturns. It's vital to understand your bot's logic and set appropriate stop-loss parameters if available.
Are there fees associated with using trading bots?
Standard trading fees apply to all orders placed by the bots on your behalf. Be sure to review the fee schedule to understand the costs involved in frequent trading, which is common with strategies like Grid trading. There is typically no separate fee for using the bot service itself.