How Automated Trading Works
When you think of a computer that makes trades on your behalf, you may be thinking of a bot that takes your entire portfolio and trades it back and forth as one lump sum between the highs and lows. That would be somewhat correct, but not entirely.
The bot does trade back and forth on your behalf, algorithmically selling at high points and buying at low ones, except it does it in incremental amounts. The screenshot below should illustrate what I’m saying and give you a visual of what I’m saying.
This morning we’re trading SHIB/USD. As you can see, there is a grid of green and red lines. When the price of the asset strikes through the green lines, the bot buys a predetermined amount. When the asset price strikes through the red line, it sells a small amount. Easy to understand so far, right? Cool.
Build and Set Your Bot
When you go to set your strategy on BitsGap, the order form will ask for this information:
- Your exchange (you can connect more than one, very cool)
- Your desired trading pair
- Your total investment amount
- How many grid levels you’d like to have (buy & sell lines)
- How far apart you want each line to be (step %)
- Where you want your low price to be (bot stops buying past this level)
- Where you want your high price to end (where you think the price could end at some point soon)
Check Your Forecast
After you’ve explored the bot parameters and found a configuration that works for you and your budget, you can even hit “backtest,” which then uses historical data from the last 30 days to predict how the trading pair will perform with the settings you’ve selected.
Remember, past performance is not a clear-cut sign that the same will happen in the future. It’s not a guarantee. It’s a forecast. Kind of like they do with the weather. Except these forecasts are based on an entirely different set of metrics and price movements.
Below is my forecast for the SHIB/USD Classic Grid Bot I have set now. I will briefly explain the different bots below.
Bot Strategies on BitsGap
This part comes before filling out your order form for the bot as described above. Still, I wanted you to know how the bot operates fundamentally before going into the different types of strategies available.
BitsGap offers three different trading strategies for their bot, each with a slightly different algorithm based on market conditions and what you believe may take place in the market. The screenshot below is for your reference.
I will tell you that it takes some experimenting with each to see how they perform under different market conditions with various coins.
In general, if the market is sideways, somewhat stagnant, or even declining, the SBOT is what you should choose. If the market is going up, the classic bot is your best bet.
1. Sbot
The Sbot is programmed to accumulate more of the asset you choose to trade it with despite market conditions. Again, it does this by making dozens (if not hundreds) of micro trades between the tops and bottoms. I have seen my balance go up as the price of a coin fell in the immediate short term before.
To me, it seems way more efficient than flat out holding your coin and watching your entire portfolio drop by 40% because you went to lunch or had to be at work and weren’t able to sell in time.
2. Classic Bot
The classic bot is the trading strategy you’ll want to go with if you think the price will rise in the immediate short term or even over a few weeks or months. This bot would not perform as efficiently as the sbot if it were set on a sideways coin or declining over time. It will, however, perform better when there is a steady and consistent increase.
3. Combo Bot
I’ve never used this bot, and it’s only available on higher-tiered plans within BitsGap. This strategy is a futures bot that also uses dollar-cost-averaging (DCA) with traditional grid strategies.
Ease of Use vs. Complexity
How does Bitsgap overcome the simplicity-complexity crypto trading bot dilemma?
We’ve already gone over the fact that a good trading bot has to maintain the balance between being simple enough to actually be used by non-programmers and complex enough to have various answers to different crypto exchange situations.
The Bitsgap development team has learned from the mistakes of their competition.
There are various bots that exist as open-source projects and have incredible crypto market potential, however they are used by virtually no one as even launching such bots requires years of coding experience.
On the other hand, there are scraps of code with one or two features sold by dubious companies as stand-alone projects for fractions of regular fees.
Why are these bad?
First of all, if a bot has only one solution to the ever-changing market circumstances, how is that different from a gamble?
It either wins or it doesn’t.
Crypto traders are much more than mere gamblers, right?
Bitsgap achieves balance.
At first glance the Bitsgap’s UI is simple and elegant, offering simple solutions with easy instructions at first, but with various advanced features available and clearly designated as such, accompanied by exhaustive blog posts and tutorials explaining each feature.
You can stick with beginner-friendly strategies, and develop your expertise step-by-step with regularly updated blog posts and news regarding the current state of the crypto market.
There’s something on the Bitsgap shelves for users with all skill levels.
We can only applaud this.
Bitsgap Features
The following features are just an iceberg’s tip of all the great, ready-to-use features available on the platform.
- Arbitrage — Traders can maximize the price difference between two or more exchanges.
- Trading Terminal– Top-notch tools are available to help you perform spot and futures trading on multiple exchanges using a single interface.
- Futures Trading Bots — Bitsgap is one of the few trading tools which allows you to build futures trading bots.
- Signals — lookout for any market anomalies for the best trading decisions.
- Portfolio Tracking– traders will have a live-generated portfolio that will enable them to track their funds and earnings.
- Automated trading bots — Bitsgap provides pre-configured trading bots that are optimized using machine learning.
- High security — Customers connect their exchange accounts to Bitsgap using API keys of the exchanges, no deposits are ever made on the platform itself. Bitsgap can never access the customer funds, it only conducts traders on behalf of the user. All orders through API are secured by Bitsgap using high-end 2048-bit encryption for further security.
- Demo Exchange- ‘My exchanges’ is a display of all the exchange accounts that the user is connected through API. ‘The Demo’ feature on the other hand allows the trader to practice using all the special features on Bitsgap, it helps the user to familiarize themselves with all that the platform has to offer.
Bitsgap Review: Pros and Cons
Pros
- Easy and fast start
- Simple configuration
- preconfigured trading bots
- Arbitrage opportunities
- Market signals dashboard
- All features in one place
- Free package for small budget accounts
- Gives 2 weeks of trial no credit card attached
Cons
- Limited trading bot functionalities
- No mobile app
Frequently Asked Questions
Is Bitsgap legit or safe?
Yes, Bitsgap is safe and legit. The team has worked hard on its trading platform.
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Does Bitsgap have mobile app?
Bitsgap does not have a mobile app for iOS or Android devices, for now. But, Bitsgap has a fully responsive website and you can check it on mobile browsers.
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Does Bitsgap take any fees from trades?
No, there are no fees from trades. You only pay a monthly subscription fee for using the platform to have access to useful tools that make trading and managing crypto more efficient.
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What are the Pros and Cons of Grid Strategy?
The main advantage of trading on the grid is that it requires just a little of market forecast — in what direction the price is likely to go in the future. That’s why it is a great tool for beginners and regular traders.
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Does Bitsgap have access to my exchange wallet?
Bitsgap does not have an option to access your exchange wallet and make any changes there. Your funds will always stay on your exchange account.
How to connect Binance exchange to Bitsgap
