Bitcoin Forum

I have noticed that almost all popular crypto exchanges have an option from a grid bot, which also includes copy trading from other successful grid bots. Daily and weekly rankings show grid bots that have been performing so well and from which traders can copy from, but I have personally never created any.

Which begs the question, Can someone actually gain some meaningful profits using the grid bots?
What are the disadvantages?

There is no easy going profit, so most people who copy others' experiences will end up failing, but the system as a whole will still work out of greed.
These trades continue because they are profitable for the platform, and when losses occur, the second party (not the platform) is the one who bears the problem, and these people can also pay money to the platform and so on.

How much data/time do these ranking go off? Some strategies work for a certain amount of time and then fail.

Most strategies that you come.up with that are successful will only work until enough other people find them or they get a lot of volume/volatility behind them so the market changes.

I'd guess these get listed as doing well as they might've worked for some time in the past but they're still likely gambling and are likely impossible to predict.

The grid trading bots are actually free, what I read is that the more grids you make, the more small trades a bot will make and this is what platforms or exchanges count on, the trading fees!

It has more to do with price range or price channel of the asset is trading at over time. So, apparently the bots work best in sideways markets. As soon as the trend of the market changes, that when they stop working and a new piece range has to be set up for the grid trading to work again, or else the trader has to wait until the price of the asset goes back to the price range.

True

Ive try it once, for only couple of dollars, I could say its the same in terms of manual trading and not employ this grid bot. I think I earned from my trial and try again and unfortunately Ive incurred loss that time. So to my experience, I think its always to do manual or spot trading on your own, especially if you are ready to risk some funds on trading. Im not gonna let a bot handle a massive financial and knowing it could ruin yout portfolio.

We have so called pro traders which can profit easily but there must be a time where they also lose and this is the only risk that those who do copy trade will face.

Not only greed but also because of laziness as I believe that some people won't learn on their own but will just use a system like this to do the work for them. Of course the trader will bear the problem because they are the ones that do trading and not the system that the customer is using and obviously there is some sort of a fee to use a function like this because this can come in handy. The only disadvantage of using this is that you won't become good on your own because you are only depending on someone else ability.

The problem with many of these bots is that they only work in either ranging or trending markets. So during a bull run you will see many of these bots in profit. However when the trend settles and it starts to range that is when you are going to experience nothing but losses.

Another issue is the large stop losses they use . They take profit early but hold on to their losers until they get break even. Eventually what will happen is they will end up getting their entire balance drained when the loss becomes too large.

I personally think that grid bots are only useful when the price of a particular asset is going range bound.
Considering that bitcoin is moving in a range bound position of $22k - $24k then it actually makes sense to use a grid bot.
But otherwise I don't think it's really useful. Besides that we still have to monitor our trades so it's better to do manual trading itself.