How to Choose the Best Bybit Trading Bot?

Bybit trading bots are automated software programs that traders can use to execute trades automatically. These bots trade on behalf of traders and are programmed with predefined rules, market signals, and real-time data. The use of trading bots helps remove emotional decision-making and enables faster reaction to market changes when trading digital currencies.

Let’s explore the available trading bots on Bybit and how to use them.

What is Bybit?

Bybit is a centralized cryptocurrency exchange that was launched in 2018. Headquartered in Dubai and registered in the British Virgin Islands, the platform serves over 70 million users worldwide. With time, the cryptocurrency exchange has collaborated with top blockchain projects to bring innovation across the cryptocurrency space.

The platform focuses on user convenience and offers a range of trading options, including spot, futures, margin, and options. Bybit supports more than 490 cryptocurrencies and over 650 trading pairs. Additionally, it offers USDT-Margin, USDC-Margin, and Inverse-Margin perpetual contracts with up to 200x leverage on selected pairs.

Bybit offers trading bots to help traders automate their trading strategies. These are pre-configured and code-free trading robots that provide users with effective trading strategies to save time and improve investment returns. In addition, Bybit focuses on robust security to protect users’ funds.

What are Bybit Trading Bots?

Trading bots on Bybit are pre-configured, code-free bots that provide effective trading strategies to save time and increase returns on investment. Based on market trends and trading strategies, these bots can help minimize risk and execute trades automatically. This way, traders can avoid the hassle of constantly monitoring a position.

The following trading bots are available on Bybit:

Futures Grid Bot

A futures grid bot is a trading strategy that is based on price volatility. It is commonly used in futures trading and is similar to a spot grid. The bot places a series of buy and sell orders at predefined price intervals, creating a grid of orders. It automatically buys low and sells high when the price of a digital currency fluctuates within a set range.

Traders prefer this trading bot in sideways or volatile markets where the price of a digital currency moves up and down within a predictable range. To use this bot, a trader sets an upper and lower price limit for a trading pair. The futures grid bot then divides the range into a grid and places orders at each level. The bot executes orders at different price levels to achieve consistent profits. On the other hand, if the price exceeds the upper or lower limit, the bot will temporarily stop until the price returns to the designated range.

Futures Martingale Bot

The futures martingale bot on Bybit uses the traditional Martingale strategy, which aims to double down on an investment after each loss until the market turns favorable. The trading bot automatically places an order whenever the market price increases or decreases by a specific percentage.

The bot continues the process until it achieves the profit target per round. It then executes the take profit order and concludes the current cycle. After this, the futures martingale bot initiates a new cycle unless manually terminated or the position is liquidated. It allows traders to use up to 50x leverage to capitalize on market fluctuations.

Futures Combo Bot

Traders use the futures combo bot on Bybit to build portfolios based on multiple futures contracts. The bot automatically rebalances all positions to maintain preset ratios of perpetual contracts based on market movements. It ensures the users’ strategy aligns with the portfolio, offering flexibility in executing trades.

The bot allows users to create a portfolio from two to 10 contracts. You can either manually set the parameters or rely on AI strategies to execute trades. The bot uses a rebalancing mechanism, either via a preset ratio or fixed time intervals, to maintain the current allocation ratio.

Spot Grid Bot

The spot grid bot on Bybit is designed to buy low and sell high automatically, enhancing profit potential in the volatile cryptocurrency market. The bot places orders at predetermined intervals within a specified price range. It helps traders capitalize on price fluctuations and perform better in volatile conditions.

By using the spot grid bot, you can set a series of buy and sell orders in a particular price direction. It creates a trading grid of orders to be triggered. Once a spot price hits the preset target, the bot will execute a buy order and place a sell order above on the next grid. When the price rises to the next grid, it will execute the sell order, offering profit from the price difference.

DCA Bot

The Dollar-Cost-Averaging (DCA) is an automated trading bot on Bybit that helps traders build a position incrementally. It is based on the Dollar-Cost-Averaging strategy, which allows traders to average the price of a digital currency by investing a specific amount regularly. It is more suitable for long-term investors who are not concerned about price fluctuations and who regularly stay up to date on changing market conditions.

The DCA bot automatically buys cryptocurrencies based on a present investment amount and time intervals. This way, it reduces the impact of market volatility. For instance, you set the DCA bot and the investment amount. Select the cryptocurrency you want to buy, such as Bitcoin (BTC), and set the purchase frequency, such as daily or weekly. The bot will automatically execute these trades for you.

Start trading on Bybit today and get 10% off fees PLUS up to $30,000 in bonuses! Sign up today and start saving while you earn. This exclusive offer won't last - claim yours now!

How to Set a Bybit Trading Bot?

Bybit offers several trading bots to help users automate their trading strategies. The available bots include futures grid, futures martingale, futures combo, spot grid, and DCA. All these bots follow different strategies and parameters to improve the trading experience.

To set a trading bot on Bybit, follow these steps:

• Sign in on Bybit using your email, mobile number, Google, Apple, or Telegram IDs. Next, create a strong password and start using the platform. On the homepage, tap “Tools” in the menu bar and click “Trading Bot.”

• Select the bot you want to use. For instance, select the Spot Grid bot and click “Create.”

• Bybit allows users to choose between an AI Strategy or manually set the bot parameters. If you select “AI Strategy,” choose the spot trading pair and review the bot parameters. Select the cryptocurrency you want to invest in, such as USDT, and enter the investment amount. You can also use the advanced setting options, which include trailing stop, stop-loss, take-profit, and more. Review the details and tap the “Create Now” tab to start using the bot.

• To enter the bot details manually, click “Manual.” Select a spot pair, and in this case, BTC/USDT is selected. For instance, considering the current price of BTC, you set the lower price at $88,000 and the upper price at $94,000. It means that the bot will buy and sell BTC within this price range. Next, enter the number of grids, such as 8. It shows the total number of buy-and-sell price levels into which your capital is divided. After this, enter the total investment amount, for example, $800. Review the details and tap the “Create Now” tab to start trading. This configuration results in a calculated grid interval of $750 between each price level ($6,000 range / 8 grids). If the bot starts at $91,000 and the price drops to the next buy level at $90,250, a buy order for a fixed quantity of 0.0011 BTC is filled. When the price rebounds to the next level at $91,000, a sell order will be executed. The profit generated from this single buy-sell cycle is calculated based on the price difference (the $750 interval) multiplied by the fixed quantity: ($91,000 - $90,250) x 0.0011 BTC = 0.825 USDT. This cycle repeats every time the price moves up and down within the range.

Valuable Tips to Set a Trading Bot

Creating a trading bot is the first step. To improve chances of success, consider the following tips.

• Always back-test your trading strategy before committing funds. Use historical data to review how your chosen parameters performed in the past.
• Start with a small amount of investment to understand how the bot behaves in the changing market conditions.
• Select the bot according to a suitable market condition. For instance, a grid bot might struggle in strong trending markets.
• Set achievable targets with trading bots. It is better to secure small, consistent gains than aim for unrealistic returns.
• Regularly check your trading bots and adjust the parameters whenever required.

Final Thoughts

Bybit trading bots are powerful tools to automate trading strategies. They help traders save time and eliminate emotional decision-making. The user-friendly interface and AI-driven strategies make them more accessible for those with limited trading experience. However, stay aware of changing market conditions and actively monitor your strategies to maximize benefits when using these bots.