When Should You Close A Grid Bot
Knowing when to start one is important, but so is knowing when it's to close. It's all about optimizing your bot to keep making profits and reduce losses or recover from them!
When To Close a Crypto Grid Bot Out Of Range (High Price) If you have big gains and think the price might drop, consider closing your bot and locking in the profits. Sometimes it’s very noticeable when there's a pump or a very big move upwards in a short period of time. As in our strategy we set it up to catch at least 20% of the price increase… You can consider that value as a starting point.
Out Of Range (Low Price) If the price goes below the grid, you will want to wait some time before canceling.
A lot of times you might cancel the bot because of FOMO. And then it ends up reverting back to previous price levels or having a big spike! Having your bot out of range doesn’t always mean you're losing money unless you sell all your coins. So, wait at least one or two weeks and then think about closing your bot. Meanwhile you get some time to think about your next move!
Underperforming Having your funds locked up on a low volatility pair might be wasting your time. Especially when comparing it to other pairs who might be performing above expectations. If you have a daily average of less than 0.4% consider closing the bot to open a more profitable one. Before closing you should have a clear idea of what pair you want to run after. The previous bot should be profitable or green!
How To Close Your Crypto Grid Bot All you need to do is to close your current bot. Your preferred software might have different options. While others will cancel the orders. Bitsgap will allow you to choose if you want to only cancel orders but also sell all your funds. If you're thinking about re-griding or opening a new bot on the same pair to recover loss. Do not sell out your coins.
What To Do After Closing a Crypto Grid Bot Re-Grid When the market is not on your side, and you closed your bot with loss you can still recover. Plus make more profits on the way up with the same crypto pair. To do that you would repeat the process of opening a bot but do it for the same pair you closed. Although with a new range for your grids!
Chances are that if it dropped a lot before it will either go sideways or up soon. Which means you can still make profits from volatility and from capital gains.
Opening A New Bot In the case you are a very proficient trader, you may want to start a bot on another pair that might have a chance of making your better returns on the way up. Re-griding is still a great strategy nonetheless if you don’t want to drop your previous pair just yet.