No matter whichever exchange you use and what trading style you follow, at a certain point, you find it necessary to cut the time consumption and all the risks associated with trade discipline in such a highly volatile crypto market. The vast majority of these bottlenecks are also the ones that can be automated or solved entirely with the help of algorithmic bots. And the Kraken trading bot would be a great example to go over.
What is the Kraken Trading Bot?
The trading bot for Kraken is based on pre-programmed algo strategies at the core and represents one of the most excellent tools to enhance all the repetitive routines if you are a regular trader. Such bots for different market cycles will allow you to take all the trading burden, stress, and monotony off your shoulders, as they can execute orders in a huge amount with the most accuracy.
Any trading bot presented in the GoodCrypto App will give you the smartest market entries and exits, enabling successful trades around the clock through all the market phases. So whether you’re a seasoned trader or just starting, automating your trades with the Kraken trading bot, you can forget about emotions and improve your RR ratio to achieve your best results in crypto trading.
Let’s quickly look at some examples of the market cycles and explore the practicality of using the Kraken trading bots with the various trade strategy settings.
Grid Bot Strategy
Any trend comes into the accumulation or distribution area, and the market dips into a flat. Any such flat period in the market is very challenging and often loss-making for many traders due to the frequent breakdowns in the market structure.
It is much more efficient to work with such a market phase in an automated way, using a specifically configured Kraken Grid bot.
Such a Kraken bot uses a grid of orders of the same size to operate on the price range you are interested in. As the bot moves through the grid, it executes the Buy and Sell orders from one level to the next, bringing you significant profits within a given range.
For example, based on the market context and objectives, you`ll be able to run the Grid strategy in different modes – the Long Grid, Short Grid, or Neutral bot, to reach the most targeted approach to the market according to your strategy.
DCA Bot Strategy
The Kraken DCA bot is a highly spread trading strategy used by many cryptocurrency traders that helps to gain the most profits from the frequent fluctuations in the market and buy the assets at the best possible price. The robot has the same principle of functioning in both directions.
If the market goes against you, such a bot will execute additional Buy/Sell trades until the trend reverses. This approach can cut the overall position cost on a particular asset over time, significantly raising interest in any trade. Or it will also be an excellent opportunity to average an unlucky position.
The DCA bot is straightforward to set up. It is fully adjustable as part of a combo trading approach. You can set the frequency of purchases and the amounts to spend, and then the bot will execute trades autonomously regarding your pre-determined parameters.
Infinity Bot Strategy
Infinity bot serves as an excellent automated strategy for the directly moving market, especially when sustained momentum appears that you want to capitalize on. By using Trailing orders, the bot will go with the price all the way to its reversal, thus reaching the highest profit out of any directional trend. The only thing you need to set up before the start, – is an optimal value of the Trailing Distance according to the current volatility and the money management of your strategy. After that, the bot will operate Trailing orders autonomously until you want to stop it.
Bots for crypto trading can execute orders much more efficiently than we do manually, as they can react faster to market changes and opportunities. Also, the bots reduce emotions, which can be a significant advantage for your strategy in a highly volatile crypto market. They stick to the pre-set scenarios and are designed to optimize your trading experience to make the most of the market situation and bring you maximum profit.
By automating the trading routine through the Kraken API bot, any trader can potentially increase the gains while reducing the trading risks without being directly involved in the process. This is why launching your own bot will be a worthwhile trading experience.