Grid Bot — Automated Range-Bound Market Strategy

3Сommas Blog
4 min readDec 28, 2019

Last week we launched the first version of a new bot that secures profits in range-bound or flat market conditions. During periods of consolidation, there is no clear trend and the price is moving sideways within a horizontal channel. The strategy involves creating a grid of orders in a given range, hence the name — Grid Bot. We conducted seven days of testing. During the live test, the bot showed a positive result of 3 to 7% profit on different coins. In this article, we will briefly explain how this works.

Grid Bot Advantage

If a coin is liquid, its value will fluctuate between resistance and support levels and this creates opportunities to sell high and buy low. However, chart analysis and manual order setting in increments that would provide a good Reward to Risk ratio are tedious and time-consuming. Therefore, we automated the described trading process for you. To maximize profits, we analyzed the historical price data of various coins and set up our Artificial Intelligence system to select the channel width, or range, for a given pair as accurately as possible.

Thus, our traders have the opportunity to profit with the Grid Bot while investing minimal time and effort. Simply select the coin and the investment amount to start. All other settings and parameters are set by the “AI Strategy”.

Of course, we cater to more advanced traders as well with a manual tuning mode. The “Manual Strategy” mode allows you to adjust each parameter of the algorithm to fit your unique trading style.

How the “AI Strategy” Mode of the Grid Bot Works

  1. The bot estimates the coin volatility over the past seven days. Based on this, the bot establishes the upper and lower values of the channel or range for inner swing trading.
  2. The Grid Bot then splits the amount allocated to your chosen trading pair and sets up a grid of limit buy and sell orders within the selected channel. Thus, as soon as the price reaches one of the lines above the current price, the bot will sell X, taking profits in Y. When the price goes down — it will buy Y. And so on infinitely, while the price remains within the channel.

How the Grid Bot Works in Manual Mode

In manual mode, you can independently adjust the price range, the number of grids, and the distance between them. These adjustments will allow you to improve the strategy with the appropriate knowledge. When working in the manual mode of the Grid Bot, remember that the minimum distance between grids must be greater than the size of the commission multiplied by two (commission for sale and purchase) for the bot to trade in profit.

How to Find the Grid Bot in the 3Commas Interface

Frequently Asked Questions:

  1. As of this moment, the Grid Bot only works with Binance and Paper trading.
  2. The minimum amount for working with the bot in the “A.I. Strategy” mode is equal to the minimum available amount allowed on the exchange multiplied by 20. For example, USDT on Binance has a minimum of $10, so a minimum of $200 must be available for Grid Bot “AI Strategy” to begin trading for you. For ETH, 0.2 is required for the Grid Bot to work because the minimum exchange order is 0.01 ETH).
  3. The minimum amount for working with the bot in the “Manual Strategy” mode depends on the number of grids. To figure out your minimum, simply multiply the value by the coin exchange minimum.
  4. Use of the Grid Bot is limited to PRO subscribers only!

Start trading with GRID Bot

The Grid Bot is now in beta testing mode. We are actively working to improve upon it continuously. Soon, we will be adding additional features, which will make the bot even more profitable. Features like trailing, stop-loss, and compatibility with other exchanges will be added so check back for new releases in the near future. We wish you a happy & successful trading experience!