A grid bot is a tool, in the same way DCA is a tool. Neither one prints money.
- DCA buys a fixed amount on a fixed schedule.
- A grid bot averages in as price falls and averages out as it rises.
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No idea how many people here have actually run one. They are available on Pionex, Binance and KuCoin, among others, and although the features differ, the idea is the same everywhere.
Three years in, here is what I have:
- If you set one up hoping it quietly makes money on its own, you are using it wrong.
- DCA into something like LUNA before the collapse and your account is gone. The bot is no different. What you run it on matters more than how you configure it. Keep most of it in BTC and ETH.
- On pairs, I use both stablecoin pairs like BTC/USDC and crypto pairs like ETH/BTC.
- On a stablecoin pair I treat it as a way to DCA in and out for me. I like setting a deliberately wide range by hand - $6,000 to $60,000 on Bitcoin - so it averages down to the bottom of that band and out towards the top.
- Keep it long term. The reason you are running a bot at all is to take your emotions out of it.
- On ETH/BTC you are trading one coin against the other. This is my favourite one, because when ETH outruns BTC in a bull market the bot quietly converts ETH back into BTC. I stay fully in crypto and never sell into dollars.
- KuCoin ranks bots by APY on a leaderboard. Do not copy a bot off it. Those numbers exist because the underlying asset just pumped, and that pump is not waiting for you. Most people who chase that list lose money.
- Holding beats a grid bot on returns. If you can hold through the whole ride up and down without flinching, just hold.
- The grid bot is for people who cannot, and it helps them stay out of their own way.
- The habit here is buying high and selling low. The bot at least does the opposite.
- I keep a large spreadsheet comparing what each exchange offers.