Three Types of Trading Strategies on Gate.io: Which is Right for You?

Copying trading strategies on Gate.io sounds straightforward; you find a strategy and copy it. This means leaving most of the decision-making up to a trading bot. Using trading bot strategies can help streamline trading as they can run 24/7 and are unaffected by a trader’s emotions. However, there are still several things traders should know, including what type of strategies to use and their advantages.

Gate.io offers three primary categories of strategies: Grid, Passive Arbitrage, and Expert. These strategies are tailored to meet individual traders’ unique needs and risk tolerances. We’ve provided a quick breakdown of each strategy type below to help you gain a better understanding.

Grid

Grid trading strategies work by placing multiple buy and sell orders at different intervals, aiming to buy low and sell high by capturing the ups and downs of the market. For example, buy orders can be placed each time the price drops in intervals of $10. At the same time, sell orders are placed at prices higher than the buy prices. Once the market price reaches the sell order price, profit is made. A stop-loss price ensures that buying ceases if the asset’s market price falls too low, while a take-profit price will terminate the strategy and take profits.

This strategy is best for markets that are moving sideways or ranging. Meaning the asset’s market price fluctuates between a certain high and low price level. In addition, it helps remove much of the need for predicting market movements and helps reduce the chance of mistakes. Lastly, Grid strategies can be used by traders on the spot market for the more risk-averse or with margin or non-margin futures market for those willing to take the extra risk for higher returns.

Passive Arbitrage

Passive Arbitrage strategies on Gate.io are low-risk strategies that are for longer-term holders. For example, Smart Rebalancing is a trading strategy that intends to increase the total holdings of an asset by taking advantage of price fluctuations. It is often used by traders who are holding because they are positive about the long-term outlook of an asset. This type of strategy is not for the short-term trader.

Smart Rebalancing strategies work by automatically trading between two assets, such as BTC and ETH, to maintain a specified ratio, like 60% BTC and 40% ETH. Trades are executed when the asset allocation ratio changes due to price fluctuations, which can result in both an increase in holdings and an increase in price in the long term. So, by the time a trader is ready to sell, they’ve steadily accumulated more holdings through orders placed at optimal times in the market.

Expert

Expert strategies allow a higher degree of customization only for more advanced traders. These strategies can use signals, indicators that help traders predict where the market may go next, to place buy and sell orders. They can also be fully customized to a trader’s liking with no coding required, meaning advanced traders can easily put their knowledge and experience to work with a few simple clicks. These strategies can be implemented on the spot and futures markets using well-known indicators such as MACD, Bollinger Bands, Keltner Channels, and just about everything else in between.

The best place to automate your trading

As one of the first of its type, Gate.io’s Copy Trading platform provides professional and comprehensive features to help all traders automate their crypto journey. Those looking to copy existing strategies can easily browse recommended ones or search for strategies to help them achieve their goals. Meanwhile, traders with more experience can easily create a powerful strategy for any market and scenario in just a couple of clicks.

Millions of global crypto traders take advantage of Gate.io’s Copy Trading and Strategy Bot platform daily. Although the user-friendly interface may give the impression of simplicity, don’t be deceived; the platform is powered by complex first-class technology with ten years of innovation behind it.