During the recent major dip I decided to try out something different. Instead of just holding assets I put some trading bots into work. First just one, then a second one and third... So this is how how they they did in 2 weeks!
Where to find them?
I would guess that many centralized exchanges have the option to use bots for trading, I don't really know how big that scene is, but I stumbled upon them on KuCoin. Right now KuCoin is offering five different bots: Spot Grid, Futures Grid, Smart Rebalance, DCA and Infinity Grid. In this article I'll be focusing on Spot Grid -bot, which KuCoin is also calling a 'Volatility Killer'. Idea is very simple, sell high & buy low.
So when the price is coming down the grid bot is making small buy ins on the way down and when going up, it starts to make sells on profit. This is of course something that you and me could do but that would mean we'd have to be staring at the martket 24/7!
Starting the bot
To start with go to 'Trade' -dropdown, choose 'Trading Bot' and click 'Create Bot' -button. Now you can choose which trading pair to use. For example I chose LUNA/USDT. This means that the bot is using USDT to buy LUNA. After that you can choose to use 'AI Parameters' or 'Customize' options. I chose AI Parameters because I was pretty happy with the settings it was offering and it seemed more risk free.
Running the bot
Once you have created the bot it will make it's first buy and start doing it's thing. You can see all sorts of statistics like, current price, entry price, floating PNL, Grid Profits, etc.
In the picture above we can see how THETA/USDT bot was doing after being running for some what 10 hours. First thing I paid attention to was the pretty nice APR... Well, that keeps changing radically and we really shouldn't be minding that at all.
Floating PNL on the other hand is interesting. It is the price gap between your entry price and the current price of an asset. During these couple of weeks the thing I started looking mostly was Grid Profits. That is the actual profit that the bot has made by selling and buying. When that is added to the Floating PNL we get the current total profits which you can see next to your USDT investment.
Also one thing to keep an eye on is the price range. It's the field on which the bot keeps operating. It won't make buys below it and it won't sell above it.
Shortly after the THETA bot I decided to add XTM/USDT -bot. XTM is Torums native coin and at the time it was quite volatile.
As you can see in the picture below, XTM -bot made much more arbitrages than THETA -bot in a shorter time. The effect of that can also be seen in the difference between the grid profits of both bots. THETA wasn't doing pretty much anything while XTM was bouncing up and down at the time. So keep that in mind when choosing the asset!
So how did it go?
So this is the situation after two weeks and the moment right before I shut down the XTM and THETA -bots and collected the profits. I also added the LUNA -bot which is still running.
In the end THETA gained more profits because it's current price was higher at the time of shutdown. On the other hand, XTM -bot made more "real" profit(grid profits) with the smaller initial invest.
Farewell to the bots
I made a plan to keep these running for two weeks and I did stick to it. At the end I decided to convert the assets to USDT. Of course there are other options to that also.
As a conclusion I was positively surprised how easy it was to use the bots for the first time! There's also a very good tutorial video on the Kucoin trading bot page which I recommend to watch if you are interested in this kind of trading.
Thanks for reading!
Also check out my favorite crypto sites:
- Torum - crypto-centric social media platform, get XTM
- Noise.cash - short blogging, earn BCH
- LunarCrush - social intelligence for cryptocurrencies
- dCrops - a very nice harvesting game
- RollerCoin - mining simulator
- Biswap - my favorite DEX!
- BetFury - crypto casino, get and stake BFG
- Womplay - play games, earn EOS (for more info, read my article about Womplay, https://www.publish0x.com/thin-ice/womplay-xmdokvr)
- Binance - check my article about how to stake on Binance: https://www.publish0x.com/thin-ice/earning-little-extra-with-binance-and-kraken-xkyxrrk