Testing Gate.io Bots

A popular trend among cryptocurrency exchanges is to create internal bots that can help you to automate your trading activities free of charge. Yes, you still need to use these strategies inside the selected exchange and pay the trading fees, but there is no extra cost to use the automation tools offered.

Gate.io exchange has also created several algorithms for users to use internally. Today, I will show you how to launch Gate.io trading bots and which options are available to automate your trading activities. The most interesting part of this guide will be linked to my results of Gate.io’s trading bots after almost three months of testing them.

In this report, you will find out how to prepare your exchange account for automated trading, how to launch your own grid bot, how to copy someone else’s strategy, and what profit can be generated by using Gate.io bots.

Preparing your Gate.io account for using trading bots

Before we launch our first bot, we need to prepare our Gate.io exchange account for trading. One of the main characteristics of bot trading is connected to the high frequency of order execution. The algorithm executes lots of buy and sell orders. This allows the bot to generate a profit from each of the trades performed. A large number of transactions also means that there will be a lot of trading fees deducted from you.

To save money on trading fees, you can improve your Gate.io VIP level or get a discount by paying fees with the internal GT coin. You can find this option in settings. Make sure to activate the toggle as this will help you to get a discounted fee. Basically, this will allow you to earn more money with the trading bots.

Don’t forget to buy some GT coins on the platform. There will be no discount if your GT balance is insufficient to pay the fees.

I have bought 16 GT coins, activated the toggle and I am now ready to launch my first bot.

Launching my first Gate.io grid strategy

The bot section of Gate.io is called Copy Trading. I am not sure why the exchange decided to use this title. Users can create their own trading strategies rather than just following other users’ strategies.

To create my first Gate.io bot, I will pick a Spot Grid Trading strategy from the Strategies Templates. As you can see, there is a huge selection of different strategies besides the grid one. For this experiment, I will be using the grid bot only, but I will definitely try other strategies in my next experiments.

Now, you need to select the trading pair you want to trade and your budget. As I have both BTC and USDT on my Gate.io account, I will test out this trading pair first. You can use the Smart Grid option, which will pre-select all the bot parameters for you, or you can use the manual mode. To make this testing as simple as possible, I will give the smart algorithm a go.

The only thing that I will enter manually is the budget, which will be 300 USDT for this trading pair.

Now, the first Gate.io bot is launched with a total balance of 300 USDT (0.0016 BTC + 223 USDT).

As you can see, it has started to execute the orders right away. I will let the bot work for some time and analyze its performance later.

Copying spot grid trading bot

If you are not sure which pair and settings to pick for your Gate.io bot, then have a look at the copy trading feature. You can sort all the running algorithms by profit, pair, or time running. Then, you just need to pick up a bot that you want to copy and relaunch it with your funds.

Here is a bot that I decided to copy. The pair is SPA/USDT, the bot is running for already 128 days and has made more than 100% in profits.

Next, you can also check more details of the selected pair. Here, it is very important to check the performance during the last couple of days. As you can see, this particular strategy is doing great, the profit is steadily growing every single day. You definitely don’t want to pick a pair that is stagnated and that is not generating any profits with the current market conditions.

Now, you just need to define your budget and copy the settings of the bot. By the way, the original strategy creator will get 5% of the total profit once your bot will be closed.

As I don’t have SPA coins on my balance, the bot will now buy the coins and launch the grid trading strategy selected.

Starting my third Gate.io bot

My third testing bot will be launched using a coin that I already have on my Gate.io balance. This is the FEVR coin, which I will be trading in association with USDT.

I have decided to launch it with a total balance of 250 USDT. This budget will allow me to use all FEVR coins that I have on the account. Again, I am using the Smart Grid settings here, so all the parameters of this bot will be selected by the AI system of Gate.io.

Now, all three bots have been launched. I will not make any changes or modifications for the next several months. The goal of this experiment is to check the results that Gate.io trading bots can generate without human intervention.

Gate.io trading bot results

Three months later I am here again to check the bot’s performance. As promised, I did not make any changes to the algorithms during this time.

The total return of all three bots is 214.65 USDT. I have invested 300 + 200 + 250 = 750 USDT in total. It means that after three months, the fully autonomous Gate.io bots were able to bring 28.5% in profits.  That is awesome!

Let’s now check every bot one by one to get more information.

FEVR/USDT

This pair executed 3100 trades during the experiment. The final profit is 138 USD. There is an unrealized profit of 81 USDT. It means that we could get this profit if FEVR’s price starts moving higher once again.

Here, you can see how the profit was accumulated during these three months.

This is how the open orders are being distributed. The buy and sell orders are almost in balance, which means that the pair is active and can still generate income with the current market conditions and the same grid strategy.

SPA/USDT

This is a summary of the SPA/USDT pair, which executed only 495 orders during the whole experiment. This trading pair was also able to register profits.

Here, we can see that after working for only a month, the price of the SPA coin went too high. All the coins were sold and the price never came back to the grid bot trading range.

There are zero sell orders right now, which means that all the SPA coins were sold out.

Gate.io grid bots do not offer any trailing options. This option would be really useful to prevent the situation that happened with this coin. If the trailing feature is activated when we launch the bot, then, the trading range selected would follow the price of the coin. With a trailing option, we would be able to make even larger profits.

BTC/USDT

Let’s have a look at our last trading pair, which was able to execute 574 orders. This is also the coin with the lowest profits.

As you can see here, we have a similar situation to the previous coin: the profits stagnated.

There are only buy orders pending, meaning that all BTC were sold out for USDT and the price never moved back to the trading range again.

My thoughts regarding Gate.io internal bots

Now, I have closed all three bots and I will start preparing for another experiment. There are still several Gate.io other strategies that can be tested. I am mostly interested in the Unlimited Grid strategy, which will allow me to create a grid without any upper or lower limits.

Basically, this was the problem for the Spot Grid strategy of the Gate.io exchange: it has no trailing options. The Unlimited Grid should solve this problem, so this will be my next experiment.

Are Gate.io bots worth trying? Definitely yes! They are easy to launch and you don’t need to enter any settings while using the Smart Grid constructor. I would advise you not to copy any other strategies, as it is much easier for you to create your own bot and not give away 5% of your profit to anyone.

Let’s not forget that I did not put any effort into managing my bots during the experiment. This was made on purpose, but when you launch your own bots you should definitely check them on a daily basis. If I would have checked my bots, then I could have re-launched the SPA and BTC pairs once they got stuck. In this way, my final profit could have been even higher.

See you in my next report, where I will show you how the Unlimited Grids of the Gate.io exchange work!