What makes the Dynamic Grid Trader Different than other Grid Bots and Learn how you can increase your return with less risk.
A Dynamic Grid Trading Bot is when multiple buy orders and sell orders are inputted with predefined price buy levels and profit levels. These are one of the best methods to get more trading activity per capital and constant profit because it places buy and sell traders very close together.
If a volatile chart is chosen that is either trading sideways or slightly uptrending, then this could be a very profit bot. This requires you to find such coins with such charts. But what happens when the coin trades out of range. If the coin has proceeded upwards out of range then, the bot, if not predefined, will not trade.
If the bot has proceed below the buy levels, then you will have a very large position, that has not taken profits because all buys would have been filled. Grid bots that are used on BitUniverse trading app and Pionex exchange, when activated, lock up your funds to trade when you predefine the levels.
The advantage of this, is that when a coin has a fat finger you will get the trades filled immediately ahead of every traders and sell orders can be inputted quickly, taking advantage of the trade. So there are some good benefits and some disadvantages.
Other Grid Trading Bot Options
Alternative you have an offering from Muunship Dynamic Grid Trading Bot. With this bot, you do not have to have predefined levels set in place for the bot to trade. This bot uses algorithms based on the history of the bot and automatically enters a trade when a price level is hit.
This will save your funds from being locked up at the exchange and allow you to trade many more coins. It also keeps you from building a predefined coin selection and distribution the trading activity where coins are active.
The other advantage is, if the coin trades out of the grid above price level, the Dynamic Grid Trader will follow the coin prices up and keep trading. If the coin goes below price level, the Dynamic Grid Trader will stop trading, until a new grid is formed and will start the trading activity again. It will limit the funds used, allowing you to have a maximum allocation to your capital.
Dynamic Grid trading is different from any other signal trading or technical analysis trading. The goal of the Dynamic Grid Trader is to make very small trades across many pairs over and over, versus Grid Trading from Pionex, 3commas, and Bituniverse, to trade the same pair over and over.
By using the Dynamic Grid trading bot, you are letting the bot do the analysis work for you.
Psychology of Trading
One thing a trader must understand is how to use the Dynamic Grid trading bot. The goal is not to make money on every trade, but it is to make small trades across high volatile coins. To do that, you will have some positions that will be out of value(bags) when you use Grid Trading Style.
What makes Muunship Dynamic Grid trading bot different, it limits your exposure, to each coin, by it stop trading when a coin trades out of range. But when the coin is back in range, the bot will make small profits at lower prices, capturing the losses from the buys accumulated in the previous Grid.
Overall this bot will make your position per pair and value from account profitable, while holding bags. Let me explain below.
If 50 trades provide 2% profit, then your total profit will be 100 points. If a coin goes out of range with 3 active open positions (bags) and the coin has dropped 15% out of range, then your current unrealized loss is 3 trades. With 15% loss on each of these trade which cost you 45 points. So you net points are 55 points positive. You are currently in positive. Also if you do not set stop loss, then there is a possibility for the coin return back to the original price and you will be 106 points positive.
If the coin does not come back to its original position, it is ok. The coin will create a new grid, where the bot will start to become active and start making profits. If the new lower price range is now active and the bot make 20 positive trades with 2% profit on each, then you net profit will be, 95 points.
Most traders have the mentality to make every trade profitable. In order to do so, they will add a very dangerous technique of DCA, of buying more at lower prices hoping for the coin to make move up, so they can recoup the losses. What if the coin does not move up, then you have totally tied up unnecessary funds and increased the risk on your trading activity.
This is not good profitable strategy and definitely not good for mental health, and the last thing you want is to take a loss. If you are going to do this one, then you will do it again and again.
Third Party Anaylsis
Below you will find detailed analysis of the bots. This Analysis has been done by a third party software application called Stoic’s Trading Tool by Marcus Anurelius. You can visit the discord at the address of https://discord.gg/WkwZA43.
That is where the Dynamic Grid trading bot comes into place. It is a bot that will provide a good profitable strategy over time with less stress. The bot uses very less balance to trade and it trades hundreds of pairs at a time, thereby diversify your pairs. Give the Dynamic Grid trading bot a three month try and see how your accounts balance grows. Slow and steady wins the race.
These bots are offered at very low price levels, and the bots have been averaging 15% per month.
This is a totally new way to trade.
Muunship Dynamic trader is available at 3commas, Zignaly,and Muunship.com