The KuCoin trading bot is free to use for any registered user on KuCoinDenis Denisov
Over the past months, we have covered quite a few strategies to actively participate in the market, but what if you are strapped for time? More and more platforms and exchanges are starting to offer automated trading strategies. Today we will discuss the KuCoin trading bot, and how to use it in your trading.
What Is the KuCoin Trading Bot?
As the name suggests, the KuCoin trading bot is a trading tool on KuCoin that takes trading tasks out of your hands. The tools allow you to pre-set certain conditions where the bot will execute trades, allowing you to trade while you sleep. It also takes away the factor of emotions from trading.
KuCoin says the tool can “assemble and copy repetitive tasks” which would help you to take trades in a systematic manner. Additionally, it will allow you to take trades you would have missed otherwise. Nobody sits at their desk 24/7, except the bots.
How Does Kucoin’s Trading Bot work?
The Kucoin bot first saw the light of day in early 2021, and at the time, it had only three basic features. Nevertheless, it got attention from experienced traders. Over the next few months, the bot has undergone slight modifications, and today it has six features. They are as follows:
- Dynamic Rebalancing
- Infinity Grid
- Margin Trading Grid
- DCA (Dollar Cost Average)
- Futures Grid
- Classic Grid
When it comes to crypto assets, the bot supports pretty much all the coins that the platform itself supports. According to the latest assessments, there are more than 800 coins available on the crypto exchange. Starting the bot isn’t too difficult, especially if we have in mind that it supports only the features that were already available on Kucoin’s website. The only difference is that the bot is available only inside the mobile app. So all you have to do is to download it, run it, and your investing adventure may begin.
Advanced traders and crypto investors can leverage advanced orders like real-time charting, limit orders, stop-loss to earn more from crypto trading bots.
What is the Futures Grid Bot?
Futures Grid Bot is a combination of grid trading and futures trading, which can bring grid profit for users when going long or short.
The bot will divide your investment into several grids and keep buying low and selling high within the price range. The futures grid is like a fishing net - by tracking the price of the contract, the bot continuously reaps profit from grids.
How to create Futures Grid Bot?
Step 1: Download the KuCoin app here.
Step 2: Choose “Trading Bot”--> “Futures Grid”.
Step 3: Set parameters for your bot. You can set Auto parameters or customize parameters by yourself.
How to set Auto parameters?
Step 1: Choose a contract
Step 2: Choose long or short.
Notice: The bot will automatically go short, but you can also change the side by yourself.
Step 3: Enter the investment amount, please make sure that you have enough balance in your trading account.
Step 4: Tap “Create” to run the bot. Kindly note the risk alert.
How to set "customize" parameters?
Step 1: Choose a contract
Step 2: Choose long or short. For reference, the distribution of long/short will be displayed.
Step 3: Set leverage. You can devote a small number of funds and gain more profit by increasing the leverage, but the risk of liquidation will increase as well.
Step 4: Specify the price range. You can choose “Fill AI Parameters”, then change the parameters based on your needs. The lower price is the minimum price for the bot to buy a contract and the upper price is the maximum price for the bot to sell. When the market price is below the lower price, the bot will stop buying contracts; when the market price goes beyond the upper price, the bot will stop selling contracts. In other words, the bot will only trade within the preset price range.
Step 5: Enter the number of orders, namely the number of grids. Under the same price range, the more the number of orders, the more the grids, and the more frequent the buy low and sell high.
Step 6: Enter your investment amount
Step 7: Tap “Create” to run the bot. Kindly note the risk alert.
How to Check the Running bots' status and Profits of Futures Grid Trading?
a. Tap “Trading Bot”, under “Running”, users can check the details of the profit, such as Grid Profits, Floating PNL, number of arbitrages, and APR.
b. Click “Trading Bot”, and then “Profits” to check the total profit and historical profits.
Notice: The Profit of the Futures Grid Bot is funding fees, grid profits and futures profits. To realize a greater profit, you can pay attention to the following tips:
1. If you want to make funding fees, the best way is to focus on the long/short distribution. Based on the historical data, generally, the short side can gain funding fees.
2. Profit grids may be affected by many factors including underlying asset, price range, take profit price and stop-loss price, grid interval, etc. It is suggested that novices choose AI parameters to optimize bot settings and yield greater profit.
3. If you choose the right side, there’ll be more future profit; however, if not, running the bot for the longer term can also make up for the losses.
4. With only a handful of funds, it is recommended to raise the leverage or to choose a trading pair with a lower value of a single lot.