Welcome to my third KuCoin trading bot review. In this post, I will share the final results of the automated Grid strategy performance. I started this experiment almost four months ago with a 0.03 BTC starting balance. Today, I will show you the profit that the KuCoin bot managed to generate and I will also share with you the best pairs with the highest profits.
This information might help you with the setup process if you are just about to launch your first trading bot. My top-performing pairs won’t definitely guarantee any profit in future market conditions. However, they are worth trying if you have no idea where to start.
Don’t forget that KuCoin is providing its trading bots free of charge, so the only thing you need to start trading is to add funds to your KuCoin balance.
How much did I earn after four months of KuCoin bot trading?
There is not a huge profit that I can be proud of. The final balance of the KuCoin exchange is just a bit higher compared to the starting balance. At the same time, I did not spend any significant amount of time managing these bots.
Here there is an interesting fact. The price of Bitcoin has a large impact on the bots’ profitability. Here you can see Bitcoin’s price chart for the last 3 months:
And here you can see how KuCoin’s bots were registering profits during the same time period:
You can definitely spot the correlation.
Here is another graph that shows the profit per day. The largest red candles happened right after the price of Bitcoin experienced a fast correction or sell-off.
One of the most frequent questions I get regarding bot trading is the following: “Wouldn’t you make more money just by holding Bitcoin?”
The obvious answer is: “No”. The goal of my bot trading strategy is to accumulate more BTC. I have started this experiment with 0.03 BTC and I would not earn more Bitcoin just by holding it.
I would have definitely lost some money if I had had to convert my BTC to USD at the beginning and launch my bots with USD balance. But for my activities, I have chosen to keep my balance in Bitcoin. I have also selected trading pairs that have BTC as a quote currency.
Now, it is time to talk more about the pairs that I have tested with the grid KuCoin trading strategy during this experiment. There were 7 different pairs launched, 3 of them ended up generating losses, while 4 others were able to bring some positive results.
What trading pairs were not successful to me?
Although Dogecoin’s price has high volatility (which is good for grid trading), it was not able to generate any profit. As you can see, there are currently 4 buy orders and 96 sell orders. It means that the bot bought a lot of coins and it is waiting for the right moment to sell them.
The status of Monero (XMR) is even worse. 100% of the orders are currently waiting to get sold.
This is another example in which the bot bought XMR coins and it is waiting for a correction to sell them back.
A negative profit using the grid bot is a pretty normal thing. When the price of the asset moves higher, all the sell orders should get executed and bring us profits. The only question that we do not know the answer to is the following: when will this moment happen? It can take days, weeks, or even months before a price correction.
If you face the same issue, there are three things you can do:
- Close the bot at a loss
- Wait for a price correction to get a profit
- Relaunch the same trading pair using a new trading range to recover the losses
As this is my final KuCoin trading bot review, I will simply close these bots and use the KuCoin exchange balance for new experiments. The second option will be a perfect fit for the lazy guys that don’t want to make any extra adjustments to the bot and that can wait for a correction in the market. The third option is definitively a good solution for profit-hungry traders. Relaunching the bot will allow your coins to be used for trading once again. In this way, they might generate some profits to cover up your losses.
Which trading pairs worked the best with KuCoin trading bot?
Now, here are the trading pairs that worked the best with my KuCoin grid strategy.
The buy and sell orders for this trading pair are balanced. That means that the bot successfully executed different trades in the selected price range.
This is another pair with balanced orders. LINK showed good results during the whole experiment. It means that its price is nicely correlated with Bitcoin’s price, which allows it to stay inside of the trading range.
Litecoin became one of the top coins of this test. This trading pair made 47 trades during the last 24 hours, which is the best result compared to other pairs.
The winner of the whole experiment is KCS. As you can see right now, it has 100 open buy orders. It means that the price has left the trading range on the upper side. All coins have been sold and we generated a profit.
My final thoughts about the KuCoin grid bot
Right now, I will close all the pairs that I used for this testing. There are several options to choose from when you close a KuCoin bot:
- Return both coins to the balance
- Convert everything to one of the coins of the pair
I will convert all the coins to Bitcoin because my initial balance was credited in BTC, so I want to receive my BTC back.
While I was not able to make any significant profit during these 4 months, there are still some useful conclusions that I can make:
- KuCoin trading bots are very autonomous. You don’t have to adjust them too often.
- The bots are very easy to launch. All you need to do is to select the pair to trade
- You need to accumulate cryptocurrency using bots, picking crypto as your quote currency
What am I going to do next? I will use my KuCoin balance for another experiment. I can connect any third-party bot solution to the exchange using an API or I can pick another internal bot strategy offered by KuCoin.
Stay tuned for my future experiments! I hope that my tests will help you while making your own research about automated cryptocurrency trading.