3Сommas Practical Guides: Benefitting from a Sideways Trend

Dear friends, we are launching a new “3Сcommas Practical Guides” section – a series of mini-articles with practical examples of how to make profits with the wide functionality of 3Commas.io service. In this article, we will take a closer look at the basics of the GRID bot.

So, we want to profit from the cryptocurrency market movements. Things are quite obvious when the price of an asset is in an uptrend or a downtrend, and you can profit from growth or decline in an asset’s value. But the vast majority of traders are concerned about making money during consolidations (lateral, or “sideways” movement of an asset in a defined range), that often continue for extended periods of time.

3Commas.io provides a unique opportunity to automate earnings during the periods of consolidation with a GRID bot.

Choose a trading pair

To trade during the consolidation phase, you need to choose the right trading pair – coin pairs are listed by the GRID bot toolbox – identifying one pair which is consolidating at the time. It is suggested to give preference to pairs, which historically have longer intervals between the extreme highs and lows during previous consolidation periods and can be determined by using the built-in chart and setting the Time Frame to 1 Day or longer. TRX/USDT pair is an excellent candidate accounting for such parameters:

Launching a GRID bot 

After choosing a pair, we can configure our GRID bot. The bot’s strategy represents a grid of orders, arranged to encapsulate the consolidation block. And then, buying at levels below current chart price and selling at levels above current chart price, the bot automatically earns profit as long as the price of the asset continues consolidating and moving up and down within the “grid”.

There are two main strategies:

  • AI strategy – where you choose an exchange, a trading pair, and the share of the deposit that you plan to devote to this strategy. The bot will then automatically spread the grid of orders in the current consolidation range according to the specified algorithm.
  • Manual strategy – where you can manually set the upper and lower limits of the range and the number of orders in the grid.

You can always try a GRID bo,t without risk, using the Paper Trading account:

After choosing a strategy and setting the parameters, provided that the potential profit suits you, create a bot, and if you currently don’t hold either of the two assets, the bot will offer to choose a way to purchase the required amount to begin operation. Coins from both pairs are required to start the bot as the coins you are trading with are used for the “buy” grid levels and coins you are trading against are used for “sell” grid levels:

After purchasing the asset and launching the bot, you can check the distribution of the orders:

And observe the bot making profits automatically:

When the price exits the grid, the GRID bot automatically pauses trading and waits for the price to return to the consolidation range, or to be stopped manually.

When choosing strategies, it is vital to independently and carefully calculate the entry point, based on your risk management and financial capabilities.

Good luck, everyone! See you in the next 3Сommas Practical Guides!

Crypto bots