The dynamic and fast-paced world of cryptocurrency trading often calls for an intricate blend of strategies to optimize profits and mitigate losses. At Gainium, we strive to provide our users with the most innovative and sophisticated tools to help them navigate this ever-evolving landscape. Our latest addition, the Combo Bot, is a testament to this commitment. It effectively fuses Dollar-Cost Averaging (DCA) and grid trading tactics into one powerful tool, allowing for more nuanced trading and increased potential for gains.
Our Combo Bot is an intricate tool that primarily behaves like a DCA bot but introduces a unique twist to its operations - it establishes a series of 'minigrids' with each DCA order, rather than liquidating all assets at once. This approach harnesses the power of grid trading and DCA strategies, offering our users an innovative way to trade cryptocurrency.
In essence, a minigrid is a pre-defined trading range created by the Combo Bot whenever a DCA order is executed. Instead of selling the entire base at once, the bot establishes a grid within this range, utilizing the assets acquired through the DCA order.
When operating in 'long bot' mode, the Combo Bot uses each completed DCA order to expand the grid downwards. It's important to note that this expansion occurs using the purchased base. The minigrid remains active until the asset's price surpasses the upper boundary of the minigrid. Once the price crosses this threshold, the minigrid is considered 'closed', and all associated grid orders are removed.
A short combo bot uses the same logic with a short strategy. At the start, the bot sells base asset and uses that quote to set a minigrid. If the prices continues to rise and hits a DCA level, the bot will sell more base and set up another minigrid on top, effectively expanding the overall grid upwards with each DCA. When the price crosses under the lower boundary of the minigrid, it is considered closed and the grid orders associated to it are removed.
Once all active minigrids are closed the Combo Bot enters a waiting phase. During this time, the bot does not initiate new trades. It instead waits for a new deal start condition, which triggers the creation of the next minigrid. The combo bot support all DCA deal start conditions (ASAP, Technical Indicators, Time-based and Webhooks) giving you great flexibility to time the perfect entry.
As mentioned earlier, the combo bot operates in a similar fashion to a DCA bot, hence most settings are the same. There are, however, a few points worth noting:
Gainium's Combo Bot blends the best of DCA and grid trading strategies, providing our users with a powerful tool to navigate the volatile crypto markets. With this innovative feature, you can not only automate your trading strategy but also optimize it to leverage market fluctuations effectively.
As with any trading strategy, it is essential to understand your risk tolerance and investment goals before using the Combo Bot. Gainium is here to provide you with the tools you need, but the strategy is ultimately up to you. Happy trading!