Kucoin Infinity Grid Bot Review

If you’re interested in automated trading on the KuCoin platform, you’ve probably come across their trading bots. But how do they work? Are they free to use? And which bot is best suited for your trading goals? In this article, we’ll dive into these questions and more to help you navigate the world of KuCoin trading bots.

Are KuCoin trading bots free? What are the trading fees?

One of the great things about KuCoin trading bots is that they are available to all users at no additional cost. That’s right, you can access these powerful tools without having to pay any extra fees. However, it’s important to note that trading fees still apply.

For spot bots, the trading fees are the same as KuCoin’s standard spot market rates. But here’s the good news: selected coins offer a 20% discount on Lv. 0 Maker/Taker fees when used with spot trading bot strategies. This means you can save even more when using certain coins with the bots.

When it comes to futures bots, the trading fees are a fixed Maker/Taker fee of 0.06%. So whether you’re trading in the spot or futures market, you can enjoy the benefits of KuCoin’s trading bots without any additional charges.

I’m a HODLer and I pursue long-term value. Which trading bot should I use?

As a long-term holder, you’re looking for strategies that can help you accumulate assets over time. In market downturns, you see an opportunity to buy assets at relatively low prices. In such situations, the Smart Rebalance and DCA (Dollar-Cost Averaging) bots are excellent choices.

The DCA bot uses a fixed investment strategy commonly used in traditional financial markets. It helps you average out buying costs and optimize asset allocations for potential high returns, especially in volatile and downward markets.

On the other hand, the Smart Rebalance bot automatically adjusts your asset portfolio according to market ups and downs. It optimizes the ratio of your positions in different assets to maximize income. For example, if the price of BTC rises, the bot would automatically sell a certain amount of ETH to buy more BTC, and vice versa.

Both of these bots allow you to take advantage of market fluctuations and optimize your asset growth over the long term.

When trading in a bear market, which trading bot should I choose?

In a bear market, making a profit can be challenging. However, with the right strategies, you can still capitalize on market fluctuations. KuCoin offers several trading bot strategies that can help you navigate bear markets successfully.

  1. Grid Bots: Spot Grid and Futures Grid – These bots use a grid trading strategy to automatically buy low and sell high within a certain price range. This allows you to earn small profits that can add up over time, even in volatile markets.

  2. DualFutures AI – This bot captures rebounds in volatile markets by using pullback trading signals based on technical indicators. It’s ideal for profiting from swing trades after small and mid-cycle trend reversals.

  3. Martingale Bots – Suitable for both long and short volatile markets, Martingale bots continuously buy as the price drops by a fixed percentage and sell once the market reverses. This strategy helps manage risks while providing stable returns.

By choosing the right trading bot strategy, you can increase your chances of success even in bear markets. To learn more about these strategies, check out the KuCoin Crash Courses on KuCoin Learn.

Which coins are best suited for trading bots?

Different trading bots are suitable for different coins. For grid strategies like Spot Grid, Futures Grid, and Infinity Grid, mainstream currencies like BTC and ETH are preferred. These coins have larger trading volumes and high volatility, which creates more arbitrage opportunities for the bots.

DualFutures AI also performs well with high volatility and large trading volume. It’s suitable for both mainstream and meme coins, allowing you to seize trading opportunities during rebounds and pullbacks.

If you’re looking for long-term investment strategies, Infinity Grid, DCA, and Smart Rebalance bots work best with mainstream coins or value coins that have market recognition. These coins have the potential for the highest increase in value over time.

Is there any risk of loss with trading bots?

It’s important to understand that trading bots are tools designed to execute specific trading strategies. They are not guarantees of profit and come with risks of loss. Ultimately, your trading decisions still need to be made by yourself.

To manage the risk of loss:

  1. Exercise reasonable money management and invest only funds you can afford to lose. Regularly review and adjust your trading strategies.
  2. Stay updated on market dynamics and the assets you are trading to make timely decisions.
  3. Conduct sufficient research and exercise due diligence before investing. Seek advice from professionals when necessary.

Remember, trading bots are only as good as the strategies you use and the decisions you make. Stay informed and be proactive in managing your investments.

How long should a trading bot be run for?

The runtime of a trading bot depends on the strategy you’re using. For long-term strategies like Smart Rebalance, DCA Bot, and Infinity Grid, it’s common to run the bots for several months or even over a year. These strategies are suited for position traders aiming to go through a bear-bull cycle.

Short and medium-term strategies like Spot Grid, Futures Grid, DualFutures AI, and Martingale Bots are suitable for running in the medium or short-term volatile market. The bots can continue to run as long as market volatility persists. However, you should still monitor market trends and adjust the runtime of the bots accordingly. Normal runtime can range from a few weeks to several months.

For Futures Grid, it’s particularly useful when the market fluctuates greatly in the short-term. If you have a prediction about the market’s future direction, you can create a Futures Grid in advance and close the bot when your profit target is reached.

My Spot Grid or Futures Grid is operating at a loss, what caused it?

Operating at a loss with grid bots can happen for a few reasons. Avoid these scenarios to increase your profitability:

  1. Spot Grid Bot enters at a high price, followed by a one-sided fall.
  2. The Futures Grid was opened in the wrong trade direction, resulting in unrealized losses.
  3. Stopping the bot prematurely in volatile markets before reaching the take-profit position.
  4. Improper grid parameters or a too-small price interval, leading to trading fees eroding profits.

To address these issues, focus on improving your decision-making when to go long or short while using the Futures Grid. Improve position management and allocate risks wisely. Set appropriate grid parameters that determine the frequency of grid trading.

Optimizing these areas can help increase profitability when using grid trading bots.

How to get more profitable with the Futures Grid?

To maximize profitability with the Futures Grid, try the following strategies:

  1. Accurately predict market trends using reliable technical indicators. This helps you capitalize on significant market movements.
  2. Use automatic arbitrage trades to generate profits in volatile markets and mitigate losses due to price pullbacks in trending markets.
    By tracking trends, forecasting market directions, and using grid profits to counteract losses, you can optimize your trading outcomes with the Futures Grid strategy.

Can trading bots automatically manage my stop losses and take profits?

Yes, KuCoin’s trading bots do support automated stop loss and take profit functions within their advanced settings. You can set a stop loss to sell all of your positions when the market hits your predefined loss threshold. Similarly, a take profit setting prompts the bot to sell when the market reaches your targeted profit level.

With these features, you can automate the management of your stop losses and take profits, saving you time and effort.

How to set parameters when using trading bots for the first time?

For beginners, KuCoin offers two user-friendly options for setting parameters. The first option is the simple AI setting, which uses historical data to automatically suggest optimal trading parameters. This option is great for those who are new to trading bots and want a hassle-free experience.

The second option is AI Plus, currently exclusive to the Spot Grid. With AI Plus, you don’t need to set any manual parameters. The AI automatically configures the parameters and executes trades based on strategic algorithms. This mode is perfect for users who want a hands-off approach to trading.

Experienced traders may prefer the Custom Mode, which allows for manual adjustments based on personal market analysis and strategic preferences. This mode gives you more control over the trading process.

Choose the setting that suits your trading experience and preferences to get started with trading bots on KuCoin.

In conclusion, KuCoin trading bots offer a range of strategies to suit different trading goals and market conditions. Whether you’re a long-term holder, navigating a bear market, or looking to optimize your profits, there’s a bot for you. Remember to use these tools responsibly and make informed decisions based on your own research and understanding. Happy trading!