Long term grid bot (BTC/DAI)

As you can see, I decided to gain DAI instead of BTC. The reason behind this choice is that DAI is a crypto pegged to dollar, like USDT, but it is (for now) less liquid than this one. In this way, a grid bot is quite efficient to execute orders in candle spikes. In the screenshots below you can see what I am talking about. I used bitsgap to simulate this bot.

The huge shadows you see and the sawtooth candles are caused by two main factors: low liquidity in this particular trading pair (not enough matches between bid and offer) and delay of the pegging mechanism behind the DAI cryptocurrency.

Let's see an example of grid bot on BTC/DAI for the months to go:

This is the same bot but on USDT: the results are worse.

Considerations on investment returns:

Given that we are trading on a low volatile pair (compared to the altcoins, but also more secure than these), the 7% monthly is not as bad as can appear. In addition, this bot has a huge price range to sweep: if you reduce it, for example between 31000 and 55000, the results are slightly better, about 9%.

If you reduce the spacing between levels, from 1.5 to 1%, there is not much difference:

As you can see, results are slightly worse: that's because you do more trades, then more fees to pay. Anyway, in a less volatile market could be useful to set a thinner grid.

In my opinion, there is no need to set a stop loss: in the worst case, you just temporaly hold.

In the next weeks I'll post the results of the live running grid bot.

You can use Bituniverse or Quadency free grid bots to set this configuration instead of using Bitsgap, that is paid.