Selecting the Right Spot Strategy

Choosing the right spot trading strategy isn’t a one-size-fits-all situation—it depends on what you’re comfortable with, your experience, and the specific market conditions you’re facing. In this guide, we'll dive into various spot trading strategies available in Gunbot, breaking down when each might be most useful. Whether you're all about technical analysis, big on managing risks, or just trying to make sense of the market's ebb and flow, there's a strategy here for you.

Builder Strategies

Builder strategies give you the freedom to craft custom trading rules without needing to be a coding whiz. They're perfect for traders with specific ideas in mind who just need a user-friendly way to bring those ideas to life.

Key Features:

• Flexible Parameters: You can tweak a variety of technical indicators, like RSI, Bollinger Bands, and Moving Averages, to fine-tune your strategy.
• DCA Integration: Set up Dollar Cost Averaging (DCA) effortlessly to manage risk and average out your entry price over time.
• Trailing Options: Automatically follow price movements to get in or out at the best possible time.
• Customizable Indicators: Mix and match indicators to sharpen your entry and exit points.

Typical Use Case:

Let’s say you’re keeping an eye on an asset that tends to bounce back when it hits the lower Bollinger Band during a downtrend, especially when the RSI drops below 30. With a Builder strategy, you can set up an automated approach that:

• RSI Buy Level: Kicks in a buy order when the RSI dips under 30.
• Bollinger Band Settings: Buys when the price touches or dips below the lower Bollinger Band.
• Price Trailing: Trails the price to secure a better entry within a certain range.
• Sell Strategy: Sets a sell condition, like hitting a profit target or another indicator reaching a specified level.
• DCA Options: If the market doesn’t immediately favor your entry, DCA settings help you average down your position.

This strategy works wonders if you like to automate a method that’s proven reliable in similar market conditions.

GridBots

GridBots are all about capitalizing on price action without getting bogged down by market direction. If the market’s moving but not trending in any particular direction, this could be your go-to.

Key Features:

• Non-Directional Trading: You’re making profits from the market's natural fluctuations without needing to guess where it’s headed.
• Grid Order Placement: Automatically places buy and sell orders at set intervals within your chosen price range.
• Simplicity: Easy to get up and running, making it an attractive option if you’re new to trading bots.

Typical Use Case:

Imagine a market where prices are bouncing between $30,000 and $32,000, like Bitcoin often does. A GridBot can place buy orders at intervals like $30,000, $30,500, and $31,000, with corresponding sell orders slightly higher up. This way, you profit from those small, consistent swings without having to predict whether Bitcoin will break out of that range.

GridBots are your best bet in sideways markets where prices are moving, but there’s no clear trend.

Gridlike Strategies

Gridlike strategies, like StepGridScalp and StepGridHybrid, take the best of both worlds from grid trading and indicator-driven approaches. They’re more sophisticated than pure grid strategies, offering a blend of automation and market responsiveness.

Key Features:

• Indicator-Driven Orders: Combines grid trading with indicators to pinpoint the best buy and sell moments.
• Partial Sell Logic: You can sell off portions of your holdings during favorable conditions, locking in profits while still holding some skin in the game.
• Adaptive to Market Conditions: These strategies can tweak grid intervals on the fly, responding to shifts in the market.

Typical Use Case:

These strategies are ideal if you’re dealing with an asset that’s both volatile and predictable to some extent. For instance, if you notice regular price swings that also align with specific indicators, a strategy like StepGridScalp can set up a grid of buy orders during a downturn and then adjust those orders as indicators hint at a reversal.

This approach helps you stay profitable while using less capital than traditional grid setups, making it great for traders looking for a more hands-on approach without being glued to the screen.

Custom Strategies

Custom strategies are for the advanced traders who want full control. Whether you’re coding from scratch or tweaking a strategy from the community, this is where you can really flex your trading muscles.

Key Features:

• Total Flexibility: If you can dream it up, you can code it—Custom strategies give you the reins to create anything.
• Community Strategies: Don’t reinvent the wheel; tap into the Gunbot community to use or adapt existing strategies.
• Complex Order Types: Go beyond the basics with sophisticated orders that fit your exact needs.

Typical Use Case:

Say you’ve come up with a new trading theory that combines several indicators in a way no one’s thought of yet, or you need a strategy that handles complex order types not available in the default options. Custom strategies let you implement this from start to finish, creating a trading bot that acts just the way you want it to.

These are perfect for seasoned traders who want to innovate or personalize their strategy to match fast-changing market conditions.