Introduction to Spot Grid Trading Bots on HTX
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Spot grid trading bots are automated trading strategies. HTX offers a range of spot grid bots including Martingale, Infinity Grid, Spot Grid, and "Trade to Earn." Among these, Martingale and Infinity Grid can be used in an infinite loop mode.
1. What is Martingale?
1) Martingale bots are based on the core principle of the traditional Martingale strategy: gradually averaging down by buying in batches and selling all at once. This approach helps significantly lower the average holding cost over time.
2) The bot buys more assets as the price drops by a fixed percentage, but doubles the trading size (e.g., 1 unit, 2 units, 4 units, 8 units, 16 units, and so on).
3) For example, if the bot is set to buy every 1% drop, it will execute purchases at 99%, 98%, 97%, 96%, and 95% of the order price. After a 5% drop, the average cost is already reduced to 95.97% of the original price, meaning only a 1.02% rebound is needed to break even. This makes the Martingale strategy particularly effective for premium assets with price fluctuations. As long as the asset has volatility and does not trend toward zero, this type of bots can generate profits. For the bots, timing the market is less critical. As long as the asset doesn't continuously drop without recovery, the bots have a high probability of making a profit.
4) To maximize success, it's recommended to use the Martingale bots on mainstream assets and avoid buying at all-time highs.
5) This strategy minimizes risk by avoiding leverage and allowing users to control how much the price drops before additional purchases are made. Temporary price dips can result in unrealized losses, but the ability to buy more at lower prices increases the chances of recovering profits when the asset's value rebounds.
2. What is Infinity Grid?
Infinity Grid bots are designed for long-term bullish markets, ensuring that users always hold a portion of assets instead of fully selling out. However, certain market conditions may impact profitability or result in potential losses. See details below:
1) Uptrend Markets: If an asset experiences a strong rally, the bot will continue selling portions of your holdings. If the price surpasses the take profit (TP) threshold, the bot will sell all holdings and stop trading.
2) Downtrend Markets: If an asset experiences a strong downtrend, the bot will continue buying, exposing you to market risk. If the price falls below the lower price you set, the bot stops buying, but previously purchased assets may continue to decline due to further price drops. If a stop loss (SL) level is set and triggered, the bot will sell all holdings and exit the trade.
3) If the traded asset is delisted, halted, or encounters order failures, the Infinity Grid bot will automatically stop.