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Selecting the Right Spot Strategy

Choosing the appropriate spot trading strategy depends on your preferences, skills and the market. This guide outlines the different types of spot trading strategies available in Gunbot and provides scenarios where each might be most beneficial.

Builder Strategies​

Builder strategies offer a way to create custom trading rules using a wide array of predefined parameters. These strategies are ideal for traders who have specific trading ideas but lack the programming skills to implement them from scratch.

Typical Use Case:​

Imagine you're observing an asset that shows a pattern of rebounding from the lower Bollinger Band during a downtrend, especially when the RSI is below a certain threshold, say 30. You can configure a Builder strategy to automate this trading idea by specifying:

  • RSI Buy Level: Set to trigger a buy order when the RSI is below 30.
  • Bollinger Band Settings: Buy when the price touches or falls below the lower Bollinger Band.
  • Price Trailing: Activate price trailing to enter the market at a more favorable price within a specified range.
  • Sell Strategy: Define a sell condition, such as a percentage profit target or another indicator reaching a certain level.
  • DCA Options: Configure Dollar Cost Averaging (DCA) settings for situations where the initial entry does not lead to an immediate profit.

GridBots​

GridBots implement a classic limit order grid strategy, purely based on price action. This strategy is best suited for markets experiencing consistent volatility, allowing you to capitalize on small price movements within a predefined range.

Typical Use Case:​

In a ranging market where the price oscillates within a known band, GridBots can automatically execute buy and sell orders at incremental price levels. This strategy profits from the natural market "waves" without predicting the direction.

Gridlike Strategies​

Gridlike strategies, such as StepGridScalp and StepGridHybrid, blend elements of grid and builder strategies. They employ a predefined, yet highly opinionated use of indicators alongside grid behavior, offering a more nuanced approach to trading.

Typical Use Case:​

For assets that exhibit frequent, predictable volatility but also follow certain indicator patterns, Gridlike strategies can dynamically adjust orders based on price action and partial sell rules, ensuring profitability while reducing capital requirements compared to traditional grid systems.

Custom Strategies​

Custom strategies are for those who wish to fully control their trading logic. Traders can either code their strategies or use those shared by the community.

Typical Use Case:​

If you've developed a unique trading theory that combines multiple indicators in a novel way, or you need to implement complex order types that aren't covered by existing strategies, coding a Custom strategy provides the flexibility to bring your precise trading vision to life.