Hi everyone! Welcome Back! In today’s article, I will try to explain everything about the Kucoin Trading Bot and best kucoin trading bot settings. Kucoin Trading Bot monitors the market and executes trades on your behalf. This bot can help you to earn money even when you’re away from the screen.
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About Kucoin trading bot
OK, now coming back to the article. Currently, you can find 5 different bots under Kucoin Trading Bot. You can use all five bots in the Kucoin app but if you will use the Kucoin website, you won’t be able to use Infinity Grid and DCA Bot. These two bots work only in the app for now. You will see the Ranking option inside the trading bot. Here, you can see the last 7-Day Ranking and Leaderboard but when you click on the rank, nothing happens. I think it would be helpful if Kucoin will show more details about these rankings.
Spot Grid kucoin trading bot
OK, Now Let’s see how you can create a Spot Grid Bot. Open kucoin trading Bot and select Spot Grid. If you want to copy the parameter of a top-ranked trading bot, you can just click on the ranking. But I would suggest you do not copy these parameters because the same parameter may not work. OK, now click on the create button to create a Spot Grid bot. Here you will get two parameter options, AI Parameters and Customize.
I prefer the customized parameter option. Now, you can select the trading pair of your choice, I will keep the LINK/USDT selected. You can also click Fill AI Parameters to fill the same price range as AI or you can check the price chart to enter custom details.
At the time of writing this article – In 4 hours chart, low price is around 7.0 and the high price is around 7.5 so I will enter the same in the Price Range. I will enter 40 in number of placed orders. The number of placed orders depends on the price range. If the difference between the low and high price is very big, you will get more number of placed orders.
Then, Enter the amount you want to invest. You need fund in your trading account to create a bot. The minimum investment amount is different on all trading pairs. If you will select any other coin, you will see a different minimum investment amount. You can also use this advanced settings option to set stop price, take profit price, and entry price. Now, click on the create button to place the order. Click confirm to start the bot.
I will show you how this bot performed after 2 hours. As you can see, almost after 2 hours, this bot has completed 3 arbitrages. A combination of 1 buy order and 1 sell order is an arbitrage. This means the bot has completed 3 buy orders and 3 sell orders in 2 hours. You can also click on history icon to see the order details. Currently, I can see 36 buy orders and only 4 sell orders. The reason behind very few sell orders is the price range. I entered 7.5 as the high price range and the current price of the LINK coin is around 7.25 USD.
The difference between the current price and high price range is very less that’s why the bot has placed only a few sell orders. I can click on this edit icon to change the price range. If I will increase the price range, the bot will modify this active order and place more sell orders. After 11 hours, this bot has completed 30 arbitrages and currently, my profit is 1.36%.
I cannot call it a great profit but also, I cannot ignore the fact that I am gaining a small amount without monitoring the market. Obviously, you can also lose money after using this bot but if you will customize your parameter depending on the market condition, you will definitely earn a good amount. If you want to stop this bot, you can click on this stop icon. Select the mode of refund and click confirm. After stopping the bot, you will get your fund back into your trading account. You can check your profit and loss history in the Profits section.
Kucoin Future Grid bot
Now Let’s talk about the Future Grid bot. Future Grid and Spot Grid are almost the same so I am not going to explain about Future Grid in detail. Future Grid has two advantages. The first advantage is Leverage. You can use up to 5X Leverage, which means, you can earn 5X more money or you can lose 5X more. And the second advantage is the Short Position. In Spot Grid, you can earn money only if the price of a coin will increase but in Future Grid, you can earn money in both directions. If you think the price of a coin will decrease, you can use the Future Grid to create a bot for the short position.
APR in Kucoin trading bot
Now before going ahead, I want to talk about APR. As I can see, Kucoin is showing almost 15000% APR as the top gainer under Spot Grid. APR means the annual percentage rate. Kucoin is multiplying the daily return to 365 to show you the APR. So, if you will divide this number by 365, you will get around 41% return. This means this user’s return is only 41% but Kucoin is showing in APR that’s why it looks like a very big return. So, I think showing APR is kind of misleading. If they can show daily return instead of APR, that will be more useful for Kucoin users.
Now Let’s see how DCA works. I think most of you already know about DCA. DCA means Dollar Cost Averaging. DCA allows you to lower the average entry price of an investment. Now suppose, I am bullish on HTR and I want to hold at least 10K coins but I cannot purchase 10K coins at once. So, what I will do is I will start investing a fixed amount on HTR at a regular interval but without the DCA bot, I will have to do it manually.
Kucoin DCA trading bot
But with the help of Kucoin DCA bot you can do it easily. This bot will automatically invest a fixed amount at a pre-set time interval. Creating a DCA Bot is very easy. Open Trading Bot Select DCA. Click Create Button. Select the coin you want to invest in. On the next screen, you can customize the investment amount and time as per your requirement. Now select the profit target and select one between two options. Remind me and continue the DCA or Remind me and sell all positions.
After that, you can click on the confirm button and Kucoin DCA bot will start within a few seconds. You can see this DCA bot. This bot is investing 20 dollars every four hours. If you will go to the order details, you will also see at what price the bot has completed the previous purchase. DCA bot is the best for those who prefer long-term investment instead of trading.
Last year, I started investing $10 every month on BTC. Currently, Bitcoin price is more than 25% down from its all-time high but my DCA investment is still in 150% profit. At that time, Kucoin Bot wasn’t available but now Kucoin bot is the better choice than any other plateform e.g. BitDroplet because BitDroplet supports only few coins but here on Kucoin you can choose any coin of your choice.
Kucoin Smart Rebalance bot
Now Let’s understand Smart Rebalance. Smart Rebalance keeps the holding of your portfolio always the same in percentage. Suppose, you want to keep 50% of your portfolio in ETH, 25% in BNB, and 25% in SOL. You invested 1000 dollars, which means currently, you’re holding 500 dollars in ETH, 250 dollars in BNB, and 250 dollars in SOL. After 24 hours, the Price of ETH has increased and the price of BNB and SOL has decreased. Now, you have 600 dollars in ETH, 200 dollars in BNB, and 200 dollars in SOL. In this case, Smart Rebalance will sell 100 USD worth of ETH and will invest 50 dollars in BNB and SOL each.
You can select, Rebalance by Time or Rebalance by coin ratio at the time of creating a bot. Now Let’s understand the Last Bot, Infinity Grid. Infinity Grid ensures that your holding should be equivalent to the initial holding value. Suppose, you create a bot for ETH coin. The current value of your ETH holding is 1000 USDT and after a few hours, the ETH price increased by 5% and now the value of your holding is 1050 USDT.
In this case, the Infinity Grid bot will sell 50 worth of ETH to keep your holding to 1000 USDT. Infinity Grid works only if the price of a coin stays above your lowest limit price. It won’t able to keep the same value if the price of a coin will continue to decrease. Obviously, you can set a Stop Loss price to decrease the risk.
OK, I think this is enough for this article, If you still have any questions, feel free to ask in the comment section below. Thanks for reading this article.