Uncover different types of trading bots

What Are the Different Types of Trading Bots Available?

In brief

With cryptocurrency trading operating 24/7, trading bots have become essential tools for traders. These trading bots help manage trades by automating strategies, reducing the need for constant monitoring.

A closer look

Let's explore the different types of trading bots available today, each with its unique approach to maximizing profits. From grid trading bots to fully customizable trading bots, the variety available today allows traders to choose tools that align with their specific goals and trading styles. Let's delve into what these trading bots offer and how they fit into modern trading workflows.

Dashboard in the Gunbot Live preview workspace
Gunbot Live preview workspace. Market data, orders and results are simulated.

The Major Types of Trading Bots Available

The trading bot ecosystem has expanded significantly, with different types of trading bots tailored to diverse market conditions and strategies. One of the most common trading bot types is the grid bot, which places buy and sell orders at preset intervals. These trading bots thrive in volatile markets where price swings between support and resistance levels are frequent. Another powerful trading bot is the arbitrage bot, designed to exploit price differences across exchanges. Scalping trading bots, on the other hand, focus on quick trades to capture small profits repeatedly. For traders who prefer more control, customizable trading bots like those offered by Gunbot stand out, enabling JavaScript strategies for flexible execution.

Grid Trading Bots

Gunbot Gridbots maintains limit buys below the market and limit sells above it, with configurable spacing and active order counts.

Arbitrage Trading Bots

Designed to exploit price discrepancies between different exchanges, arbitrage trading bots execute profitable trades automatically.

Scalping Trading Bots

Focusing on small, rapid trades, scalping trading bots aim to capitalize on micro-movements in price.

Custom Trading Bots

Trading bots like Gunbot offer customization via JavaScript, enabling traders to create personalized strategies.

Grid bot vs DCA bot: choosing a Gunbot setup

Grid trading and averaging down can overlap in Gunbot. A grid strategy can buy at successive lower prices and vary its order sizes, reducing the average entry while increasing exposure. The useful choice is which strategy's entry rules, sizing and exits you want to control.

Gridbots: maintain a limit-order ladder. Gunbot places spot limit buys below the market and limit sells above it. You configure order size, active order counts, and manual or ATR-based spacing. The standard Gridbots editor maintains the ladder around the market without fixed upper and lower range boundaries. Budget for cash to fund buys and coin to fund sells. See the Gridbots setup guide.

StepGridHybrid and StepGridScalp: vary the size of grid-style buys. These strategies combine step-based trading with trend controls, so successive orders need not have identical sizes. StepGridHybrid's Auto TL ratio (USE_TLR) adjusts buys with price, from 0.25 to 1 times the trading limit. StepGridScalp uses ratios for particular order types: Micro Scalp TL Ratio (SCALP_TL_RATIO), for example, scales micro-scalp buy and sell amounts. Both also have a Trading Limit Multiplier (TL_MULTIPLIER) that scales consecutive buys. TL ratios and the multiplier are separate sizing controls; review their interaction before budgeting a sequence. Read the StepGridHybrid and StepGridScalp settings.

Spot Builder Double Up: add explicit averaging-down rules. Double Up belongs to Builder strategies. It adds buys after an initial purchase when the configured price-drop and method conditions are met, with controls for the sizing ratio and number of additional buys. It is distinct from the StepGrid strategies' own buy and sizing logic, and from scheduled weekly purchases. See the Builder DCA/Double Up settings.

Choose by behavior and funding needs. Compare the maintained limit ladder of Gridbots, the adaptive steps and sizing of StepGridHybrid/Scalp, and Builder's conditional Double Up buys. Check the full potential buy sequence, investment limits and exit behavior for the exact strategy. Grid order counts do not cap lifetime accumulation, and larger successive buys can consume funds quickly. A lower average entry does not guarantee a profitable exit.

“With so many types of trading bots available, it's easier than ever to automate your trading and maximize efficiency—especially when you can customize your own trading bot strategies with Gunbot.”

Trading chart and order history in the Gunbot Live preview workspace
Gunbot Live preview workspace. Market data, orders and results are simulated.

Custom Trading Bots: Tailor Your Trading Experience

While many traders find success with preset trading bot strategies like grid or scalping bots, others may prefer the freedom to craft unique trading bot strategies. This is where customizable trading bots come in, giving you control over execution. Trading bots like Gunbot provide the tools to write and execute JavaScript-based strategies, offering flexibility unmatched by more rigid trading bot types. For instance, Gunbot lets you modify nearly every aspect of a trading bot strategy, from buy and sell conditions to stop-loss mechanisms. This flexibility ensures that your trading bot aligns with your personal trading philosophy, whether you're focused on short-term gains or long-term positions. By enabling such deep customization, Gunbot stands out among the different types of trading bots available, offering traders an edge in an ever-competitive market.

Been using Gunbot for 3 years now! 💎 Huge thanks to the Gunbot team for creating such an amazing bot and consistently delivering awesome updates. Keep up the great work! ❤

IMMD
Trader

The most effective crypto trading software is Gunbot; I tested several other platforms, and none matched its performance—yes, I tried the others during a bull run and still got not the best result as with Gunbot!

AL2021
Trader

I’m a rocky in this world and very surprise that I’m on the leaderboard must I say. I tried other platforms but Gunbot is the best because there is a very helpful community and developers. I tried some strats and at the end I’m very happy with MFrider for a mid / longterm.

Darkpapa
Trader
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Further your understanding of different trading bots

Explore More About Trading Bot Types

These resources will provide you with more insights into specific trading bot types and how to use them in Gunbot.