Are you wondering how to use the Pionex Grid Trading Bot and how it works? Read our Pionex Grid Trading Bot tutorial and learn everything there is to know about it!
Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
HODL sounds right, but it’s impossible for most investors
“Buy and HODL.”
That’s what most crypto investors told me when I decided to invest in crypto.
But none of them HODL their bags after several pump-and-dumps by market manipulators.
FOMO comes in and drives us to make wrong decisions. Success from HODL is complicated due to all the emotions involved during our investing journey.
As human beings, we’re always trying to buy the bottom and sell the top. We prefer to focus on a short-term PNL rather than long-term profits. HODL is against how humans react and our emotions work.
OK. So you’re telling me that it’s impossible to HODL Bitcoin? Yes, and no.
Let’s say you’re willing to go all-in for Bitcoin when the price reaches $10,000. And your dream target for Bitcoin is $100,000. If you’re able to follow this trading plan, it’d be a 10x profit from this trade. But what if the price never reaches $10,000 again? What if it takes ten years to reach $100,000? Do you think you can follow your trading plan and insist on discipline even for such a long time?
Well, the answer is no for most investors.
Instead of HODL, this is what you can do
Again, here’s our trading plan:
- Buy Bitcoin once the price hit $10,000
- Sell Bitcoin when the price hit $100,000
As an experienced investor, I won’t wait for the target buy price with my empty hands. Instead, I’ll buy some Bitcoin immediately at the current price. Keep some USD on the side and laddering buy when the price drops. To prevent the price from never hitting $100,000, I will continue laddering sell when the price surges.
Did you get my point? I’m dividing my principle into several small portions. When the price rises, I sell some part of my Bitcoin and buy some more Bitcoin when the price drops. It’s a no-brainer strategy, and you don’t have to learn several indicators trying to predict the market.
It feels fantastic when we have correct and accurate price predictions, but it sure sucks when we do it wrong.
The next question you have is: how can I follow this strategy? It’s a hassle to place orders again and again. is there a more manageable way to do it?
These repeatable tasks could be done easily by a bot. And that's where the Pionex Grid Trading Bot comes into play.
The tool that makes HODL possible
Grid trading is a strategy that profits from fluctuations, what it does is buy low and sell high in a specific price range. A Grid Trading Bot helps you to perform this strategy 24/7.
Simply set a price range from $10,000 to $100,000 for BTC/USDT. The bot will buy some Bitcoin at the current level, keep some USDT on the side, laddering buy and sell if the price stays within the price range.
Does this strategy work at the current price? Am I too late for this?
Yes, it still works now. As long as you’re bullish with Bitcoin, then use this strategy to prevent you from being shaken out by the volatile market.
You might be feeling anxious if this is your first time following this strategy. The key to success is to use only a small portion of your portfolio, an amount that you’re willing to lose. That would be 5% of my balance, and you can change the percentage if you prefer.
Another tip for winning long-term is to never go all-in. Invest another 10% with a new bot while the price drops 10%, another 10% for another new bot when the price drops again.
If you already know how to start a Grid Trading Bot, here are the parameters that you could use for this HODL strategy:
- Upper limit: $150,000
- Lower limit: $15,000
- # of Grids: 150
Currently, the minimum amount to start this bot with the above settings is $679 (BTC = $38,260). This might be too high for you. If it is, you can check out the MBTC/USDT trading pair instead. MBTC stands for milliBitcoin, which means 1000 MBTC equal to 1 BTC.
- Upper limit: $150
- Lower limit: $15
- # of Grids: 150
- Minimum required balance: $46
The perfect moment to exit from this strategy
We have been talking about the entrance strategy for the whole article. What about the exit strategy? When should I close the bot and walk away with my profits?
Let’s circle back to your initial trading plan, in our example, we chose to take profits when the price hit $100,000. That’s the moment we close the bot. When the price hits $100,000, the bot has already helped you to sell all of your holdings and that’s the right moment to close the bot.
How long can I keep this Grid Trading Bot?
This Ultra-wide BTC Grid Trading Bot is a long-term strategy. The longer BTC stays within the price range and fluctuates, the more profit you earn.
If the price goes down? Should I stop the bot?
No. Once the price is falling, that’s an opportunity for you to start another Bot. Try to create more bots when the price drops instead of closing your bot. Buy the dip, don't sell the dip.
Does this strategy only work with Bitcoin?
You can use this strategy with any of your favorite bags. As long as you’re bullish long-term, use this strategy to HODL your bags.