Bitsgap is a cryptocurrency trading and portfolio management platform. It is best known for its unique automated trading bots. Thousands of traders of different experience level and set of skills are using Bitsgap on a daily basis to maximize returns with automation.
The algorithm implemented by Bitsgap is based on a simple and effective mechanism, called GRID, which proportionately distributes investments by limit orders within a trading range pre-defined by a trader. Each time the buy limit order is executed, a new sell order is placed by the bot right above the market price. The opposite logic applies to sell limit orders. A new buy limit order is placed by the bot right below the market price. As long as the price stays within the boundaries of the trading range, the bot will be trading non-stop.
With a feature of having a narrow grid spacing setup (limit orders closely placed to each other with a minimum space of 0.01% on some cryptocurrency pairs) allows achieving a high-frequency trading pace 24/7. Below is a perfect example of the LEND/BTC active bot with 69 grid levels (limit orders), which was able to execute 7878 trades (displayed with green and red circles on the chart) throughout the period of 38 days. That’s 207 trades per day on average and by far not the limit!
Backtesting is what makes it possible to optimize automation so that traders and portfolio managers could maximize returns on both the sideways, uptrend and secure investments on a falling market. The idea of backtesting is to play out the algorithm/strategy using historical data to analyze profitability. Generated data is then used by analysts and programmers to develop best-automated trading solutions.
At Bitsgap backtesting is one of the major platform’s features that is used as a source of trade ideas. It is actively used by traders and portfolio managers to find optimal cryptocurrency pairs based on their risk and return preferences. For example, ZRX/USDT has demonstrated a 16.28% return in USDT from 12.06.2020 to 12.07.2020. That’s a 198.08% of an annual return!
If this is the return you are looking for, then ZRX is worth consideration. And with a demo mode feature, which is a risk-free trading simulator where you have virtual money, you can test and discover your own trading strategies using Bitsgap automated trading configurations and backtesting.
Optimal market scenarios to launch automated trading bots are the sideways and uptrend. The sideways market is a period of market stagnation when the price basically remains in the neutral zone as it bounces off support level and reverts from resistance as a result of buyers and sellers fighting for the “fair” price. A HODLER would gain close to a 0% return during such a stagnant market.
Instead of passively holding cryptocurrencies, with Bitsgap automation you can let the bot use your available currency (in the example below the base currency is BCH) to make profits in a quote currency at the sideways market (in the example below it is USDT). So instead of having a 0% return as a simple HODLER, automation brings decent returns, and below is an example to prove how automation can significantly outperform a passive HODLER.
Strategy (BCH/USDT)PeriodReturnHODL16.04–18.06 (63 days)5%Bitsgap automation16.04–18.06 (63 days)14.11%
The Bitsgap algorithm is programmed to buy low and sell high each time the price swings. That is the only principle of trading and investing. To ensure security and profit maximization Bitsgap automated bots have all the features like Stop-loss, Trailing UP, Take profit and Exit strategies.