Crypto trading bots can solve many problems due to their advantages of being automated tools. What about Huobi's trading bot that focuses on grid trading strategy?

Trading has become a lifestyle for most people. In the past, it was only traditional, manual, and required human intervention. But now, online trading is very common and the use of trading bots has even begun to gain traction. In human trading, it will take a lot of time to calculate and execute, but the bots just take less time doing the same thing.

Unfortunately, many people are not confident about the performance of bot programs despite their capabilities to basically eliminate the interference of trading emotions by executing trades automatically.

For example, if the algorithms are created according to certain setups in the market, the bots would follow the parameters accordingly. The program will work more efficiently in the cryptocurrency industry because the crypto market is active non-stop for 24 hours in seven days, doesn't care about holidays and never will.

Crypto trading bots

So the following question would be: which trading bot is best for crypto trading?

For your information, trading bots usually come in different setups to accommodate various market conditions and trading styles that are applied by crypto traders. To make it even more complicated, not all providers offer reliable trading bots; some can be even called scams as they only want to grab quick money for unsuspecting rookies.

Does it mean crypto trading bots are unsafe? Well, not entirely.

If you just know how to choose the right bot, it can be said that you can get the benefits of using trading bots without having to worry about bad performances. One way to know how to choose a good trading bot is by making sure that the provider is credible. And if it comes from a well-known exchange, you can be sure that it is one bot to consider.

 

Grid Trading Bot from Huobi

Huobi is a great exchange to trade with due to its reputation, developed user interface, and many crypto assets listed. The company has a good reputation as a safe, transparent company, and one of the heavyweights in the cryptocurrency market.

By signing up for an account on Huobi, security will be guaranteed, because there are several bot solutions that can interact with Huobi and its API key. The trading bots at Huobi also have a very straightforward and simple policy regarding automated bots and ensure that the trades are made right in all areas.

Huobi's grid trading is a type of quantitative trading where you buy when the value drops and sell when the value rises in a certain range. It suits traders with low-risk tolerance to make steady profits. The grid bot will arrange orders for you at any time, based on the settings you have chosen.

Grid Trading Bot from Huobi

 

How Does It Work?

For those who are new to using the Huobi trading bot, there are several options. One is to let the bot do all of the work for you, and another one is using a duplicator strategy.

The first method is also called the automatic method, which will set the right parameters for you based on historical data. You only need to set the amount of funds that you can invest in Huobi. Please keep in mind that the amount of coins used in grid trading can change based on the market. In that case, it might not be the same amount you set. Please make sure you have enough money in your account to trade grids.

Meanwhile, the second method is quite similar to copy trading. It's easy to find the best grid traders and copy their strategy with a few clicks using the duplicator strategy.

If you choose the manual way, you must set the upper and lower limits as well as the number of grids that you want to trade on.

  • The upper limit: The upper range of the price movement. If the price goes above the upper limit, no orders will be placed.
  • The lower limit: It is the lowest price on the grid. It won't be possible to make any trades if prices fall below the lower limit.
  • The number of the grid: Split your price range into a number of smaller ranges (grids).

 

Steps to Start Using Grid Trading Bot on Huobi

  1. Log into your Huobi account and choose "Spot Trading" from the main menu (Trading Bot). To choose a trading pair, click on it.
  2. The second step is to decide whether you want to use automatic or manual mode, and don't forget to set the grid parameters. Then, click the "Next Step" button (continue).
  3. After setting the parameters, the profit made in each grid will be based on backtesting.
  4. As soon as the "Dual Coin" mode was turned on, users' BTC and USDT tokens were put into trading on a grid.

 

The Advanced Settings

  • Take-Profit price: The grid won't work if the price goes up to this point. People who buy base assets through grid trading will then sell them and exchange them for quote assets like USDT and HUSD, which will be sent to their exchange account. In this case, the price should be above the upper limit.
  • Stop-Loss price: When prices fall to this level, the grid won't work. It should be lower than the lower limit.
  • Arithmetic mode: In arithmetic mode, each grid costs the same. Lower Price = Upper Price – Number of grids.
  • Geometric mode: When you're in this mode, each grid has the same price difference.

 

Risks You Should Watch For

Despite its benefits, using Huobi's grid trading bot doesn't necessarily mean 100% safe from losses. Even if you follow the trading strategies of the best traders, you might still lose money.

Grid trading is only a way to trade, not a way to make sure that your strategy will work out for you, so you should keep that in mind. Even if you use a trading bot, you should still have your own strategy. In the end, you may still have to change your trading strategy to match the current trend.

Furthermore, when the crypto market suddenly spikes a lot, trading bots' users can lose money. However, based on their history, trading bots do best in volatile markets. That's why cryptocurrency can be a good market to optimize trading bots.

So to answer the title of this article: "Can we make profits automatically with Huobi's Trading Bots?" The answer is "yes, we can because it is the nature of how trading bots work". But to make a consistent profit, you still need to be aware of the risks and manage them accordingly.

 

For other strategies in cryptocurrency trading, you can explore 5 Cryptocurrency Trading Strategies for Beginners.