Huobi Global, one of the world’s leading global exchanges, has unveiled a trading bot on its Huobi Global mobile app that will enable investors to capitalize on price volatility in the cryptocurrency market. The trading bot allows users to place, buy, and sell orders at certain regular intervals above and below the price of a particular asset.
For new traders, “buy high and sell low” is a common profit-making practice. The new grid trading bot enables traders to set a strategy and control their positions to mitigate risk. Once parameters have been set, the system will automatically execute “buy low” and “sell high” within a set price range. It is therefore possible for users to make profits even if not actively monitoring market prices.
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Markets trend about 30% of the time, leaving the remaining 70% for range-bound market conditions. However, most new retail users prefer to trade during trending conditions. A challenge then arises around how a range-bound strategy can be implemented during the times when a market is not trending. Impressive profits can be obtained when buying low and selling high in a range-bound market. Moreover, trading stable-coin pairs, such as USDC/USDT and USDC/HUSD, will allow investors to capitalize on even minute fluctuations.
“Traders no longer have to worry about missing the market, as the Grid Bot can think and act like a human and help investors profit even while they are asleep, because it runs on preset rules,” said Du Jun, Co-Founder of Huobi.”It can also help you avoid ‘shuttle trading’.”
The Huobi grid trading bot has a concise, user-friendly trading interface. After accessing the Trading Bot function from within the mobile app, users will be able to see the rankings based on PNL and the number of users who follow a particular strategy. Novices can simply ‘copy’ other users’ strategies while veterans can click “Customize” to enter the bot’s AI or customize modes. The AI mode enables users to set the price range while the customize mode enables to set further parameters.
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How the Grid Trading Bot Works
Assuming the current price of BTC stands at 40,000 USDT. Huobi user Sarah enables the trading bot function and sets a range of 30,000 USDT – 50,000 USDT. She then sets the number of grids to 4 and the width of each grid at 5,000 USDT. If the price falls below 40,000 USDT, the grid bot will automatically buy until the price breaks 30,000 USDT; conversely, if the price rises above $40,000, the grid bot will automatically sell until the price breaks 50,000 USDT.
By automatically executing “buy low” and “sell high” functions, it guarantees the selling price will always be higher than the buying price each time a trade is executed. This function helps investors profit from sideways trends while mitigating risk in a volatile market.
The grid trading bot is currently only available for spot trading. Support for futures trading will be added soon. Stay tuned!
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