Gunbot Crypto Scalping 101 Efficient Trading Style — CryptoDROI
The Most Comprehensive Guide on Gunbot Crypto Scalp Trading Strategy.
Learn How Gunbot users scalp the low period time frames to score multiple trades a day and profit from the small price changes on the crypto prices.
What is scalping, and how to use this crypto trading style to make consistent profits?
Scalping is among the most proficient methods when it comes to trading cryptocurrencies. In simple terms, it focuses mainly on making profits via quick resales. More so, the plan is for those who seek adventure through their “ hit and run “ trades.
A clear sign will be staring at the crypto charts for hours if you are a manual trader. So, follow through our guide on all there is to know regarding algorithmic crypto trading through scalping.
Traders who are experts focus mainly on trade moves involving low price stakes. Thus, their aim isn’t to make a fortune right off the bat. However, instead, they focus more on making profits gradually, in a stepwise manner.
Therefore, if you’re someone who follows scalping methods, you’ll grow over time if you do well. Besides, the primary methods for Scalping involve tight stop-losses and leveraging.
Additionally, many traders prefer using Gunbot over any other trading bots for crypto. Thus, let’s begin our article on the most extensive guide on Gunbot Crypto Scalping if that caught your attention.
Here are the 3 key points you need to take from this crypto trading style:
- Gunbot Crypto Scalping is a day trading strategy that involves making many small-profit trades rather than fewer large-profit trades.
- Gunbot Crypto Scalping is one of the shortest-term trading strategies, and many positions last only seconds or minutes.
- Gunbot Crypto Scalping requires discipline; once your set profit or loss has been reached, you need to exit the trade.
Trading with Gunbot Crypto Scalping Strategy
Scalp trading or simply Scalping is among the most employed methods used by crypto traders. To put it out there quite factually, it’s the strategy that most traders prefer to use today.
Scalping includes tools for charting and requires you to have the ability to make rapid decisions. Furthermore, it demands you to have optimal knowledge of technical analysis. Finally, just as mentioned earlier, Scalping occurs over shorter durations to pull in profits.
You can find traders who employ scalping across various platforms. Some of these include venues such as Forex trading, stock markets, and of course, cryptocurrency markets. That’s because Scalping allows you the flexibility and features that are suitable for a varied number of platforms.
Scalping, The Perfect Method for Trading
The method of Scalping is solely to make marginal profits via minimal price movements. Therefore, if you use Scalping, your aim must not be to drive significant amounts of profits quickly.
Instead, your focus should be towards a repetitive cycle of pulling in profits over time. So, it’s natural to witness traders using the method to place many trades across many short durations.
The purpose is to profit off the market inefficiencies or slight movements in prices. Thus, by doing so, you’re able to stack up profit gains over time. In this way, after a certain amount of time passes, you’ll have accumulated profits, and if you combine it with a compound, your total capital will surely grow faster.
Gunbot Crypto Scalping Technical Analysis
Technical analysis plays a vital role for you if you’re using scalping on your crypto trades. The reason is that the methods involve trading durations that are very short and repetitive, and of course, that is exactly what Gunbot will help you accomplish.
If you’re trading manually, there are high chances that you might run out of ideas about trading. Hence, through technical analysis, you’re able to come up with new ideas. But, at the same time, fundamental analysis is of no use to you. The reason is that these types of research only pertain to trading that occurs over long periods. So, you may never come across the need for such analysis.
However, you’ll find it helpful to know that even such analysis may help you when it comes to scalping. That pertains especially to cases when you are selecting assets for trading purposes.
You’ll notice that certain news or events directly impact the liquidity and volume of the crypto market. In that way, the crypto market is highly volatile, making for a significant opportunity for you.
Even though such incidents have a time window, you can take advantage of the good liquidity and high volume. Thus, it makes for the perfect playground for traders involved in scalping.
In short, when it comes to Scalping, you aim to benefit from this short-lasting volatility. But, at the same time, such a method isn’t suitable for every trader.
If you can’t make risky decisions under pressure, scalping might even lead you to your ruin. Also, you must have detailed know-how about the mechanics of the crypto market.
The Gunbot software helps you mitigate this by offering you tested crypto trading strategies based on well-known trading indicators, so you don’t have to worry or be an expert technical analyst.
Choose your strategy and let the bot do its work for you.
Gunbot Crypto Scalping Points To Keep In Mind
As a scalper, there are quite a lot of things that you must consider. These include the pattern of the charts, the levels of resistance and support, and price action. In addition, it consists of the volume of the trade market.
The purpose of these factors is to help you narrow down on trade setups.
More so, scalp traders employ various technical indicators. These are namely Fibonacci retracement tool, VWAP (Volume-Weighted Average Price), and Bollinger Bands. It also includes the RSI, which stands for Relative Strength Index, and Moving Averages.
At the same time, you’ll also find scalp traders who employ analysis based on order book in real-time. They also use various other indicators such as open interest, profile volume, and so on.
On top of that, the Gunbot algorithm gives you the freedom to customize your own strategy and use as many indicators as you want or even create your own custom strategy if you’re into programming with javascript and you have the Gunbot Ultimate Deal.
Therefore, taking advantage of these methods will indeed prepare you for success as a crypto scalper.
How To Go About Scalp Crypto Trading?
When it comes to scalping, it’s all about how you make use of the limited trade chances you get. It also depends on how you’re able to tap into the opportunities. And just like it is with all secrets, it’s no use if everybody comes to know about it.
That’s why many of these scalp traders are very hush about their trading methods. Thus, you must venture out and try to find what methods work for you the best.
As we mentioned earlier, scalping focuses on trades that happen over short periods. In that regard, these traders use charts that are available daily based on various time frames.
It could be an hourly chart or price stats every 15 minutes. Some graphs show stats per minute. Scalping deals with trades that occur within short time frames.
Thus, if you’re trading manually, you can miss out on trades by a matter of a minute or even lesser than that. That’s the reason why many scalpers use bots and follow charts based on time frames that are even lesser than a minute.
Limitations To Using Time Frames, Enter Gunbot Crypto Scalping.
As efficient as it might be, paying careful and detailed attention to every minute isn’t humanely possible. So when you look at these charts based on minute time frames, you step into the world of trading bots.
These trading bots use programs to process data to make sense of even a 1-second time frame efficiently. And it would be pretty accurate to say that humans aren’t just capable of such uniform surveillance.
At the same time, there is a way out. First, you must know that there also exist more extended time frames and levels. When compared with short time frames, these are more accurate.
That’s why many scalp traders rely on such time frames even though they deal primarily with short-term trades. And that goes on to state the reason why they choose to view these time frames first.
The mechanics behind such a strategy is quite simple. First, they pinpoint certain levels in a high time frame which, in their perspective, is vital for trade purposes. Then, after that, they analyze the level they selected by zooming in.
The aim here is to search for profitable setups concerning scalp trading.
Therefore, you will notice that you can benefit a lot from having a view of the high time frame. Even if you’re dealing with trades of short duration, high time frame levels remain vital.
Strategies Related to Scalp Trading
As potent as it might be, in general, one can never profess which methods work the best. That is because the methods of Scalping vary from one trader to the other.
Simultaneously, there’s nothing such as a universal rule that scalp traders must follow. Instead, every scalp trader sets their own rules. Thus, keeping those points in mind, here are some strategies that you’ll find helpful.
The methods for Scalping largely depend on the nature of traders. All in all, there are two kinds of traders. These are, namely, Systematic and Discretionary Scalp traders.
Systematic Scalp Traders
These types of Scalp traders have a system for trading that’s uniform and well-defined. Also, these systems are responsible for deciding the trader’s gateways for them.
By gateways, we mean the points for entry and exit for trades. The systems are further dependent on a specific set of rules placed by the traders.
When it comes to Systematic Scalp traders, they are more reliant on data. Consequently, their strategies heavily follow a pathway driven by sets of data. Hence, it’s pretty natural to conclude that intuition for these traders comes second to data.
Discretionary Scalp Traders
Discretionary Scalp traders are quite the opposite of Systematic ones when it comes to strategies. Unlike the latter, these scalp traders depend heavily on the power of intuition and gut feeling.
Rather than making trades based on data, they form their decision “ on the go.” As a result, their choices may or may not change depending on how the trade market unfurls.
Regarding entry or exit points, it won’t be odd if they don’t have data presets.
But instead of data, the existing condition decides when to enter or exit. It’s not that these scalp trader types don’t have a set of rules. Instead, it’s the fact that they are more flexible with directions and more intuitive.
Various other traders who don’t go for Scalping may also fall under these categories.
At the same time, such groupings are more efficient for methods related to short-term trades. That’s because for trading long term over more extended time frames, a discretionary type doesn’t make sense.
Cryptocurrency Range Trading
Range trading is another method employed by Scalp traders. The mechanism of the technique is pretty simple.
In range trading, you wait for the prices to reach a certain level. And when the market hits those ranges, you trade within the prices you set.
Range trading functions around support and resistance. The bottom of the price levels functions as support until the market reaches the price bar. At the same time, the top of the range offers resistance.
However, it would help if you remembered that there’s no guarantee about the range you set. Still, range trading remains an effective tool for scalp traders.
To counter its limitations, expert scalp traders make use of a stop-loss. It helps them prepare better when and if the breakout occurs.
If you’re this type of trader, a strategy like Support-Resistance from Gunbot would be your best choice.
Tapping Into The Bid-Ask Spread
Taking full of advantage of the bid-ask spread is among the most prominent strategies for Scalping. It involves profiting off of the lowest ask and the highest bid. In addition, you can use the method to gain profits by benefiting from the difference between the two.
Simultaneously, it works best for quantitative and algorithmic trading. That is because, in comparison to machines, we aren’t as efficient when it comes to a monumental amount of data.
That is why the method involves the use of crypto trading bots. Thus, if you wish to make use of it, be ready to deal with algorithms.
Crypto Trading Bots
Many people agree with the usage of bots on crypto exchange platforms, and some people like yours truly suggest and do make use of these trading bots, more specifically Gunbot.
There are many types of trading bots that all kinds of traders employ. And among them, Gunbot is one of the incredibly famed and most used trading bots.
One of the most attractive features about Gunbot is with regards to its upgrades using Gunthy Tokens. As a result, you can customize Gunbot greatly to suit your strategies perfectly.
Leveraging Gunbot Crypto Scalping
In general, leveraging is pretty standard when it comes to cryptocurrency trading. By using leverage, scalp traders raise their chances of making a profit out of the trades.
Through leveraging, they boost the positions they hold. Because of that, you’ll see traders making use of contracts such as futures or take part in margin trading.
In addition, thanks to crypto exchanges like Binance, FTX, and Bybit, other platforms offer leveraged and futures trading.
At the same time, you must be careful about slippages and liquidation that may occur while trading using leverage.
The Scope Of Gunbot Crypto Scalp Trading
Whether you should start using the methods of Scalping is totally up to you. As we mentioned earlier, it depends on factors such as the nature of scalp traders. It also varies based on the style and form of trading that works best for you.
If you’re someone who doesn’t feel easy to leave open positions for long, go right ahead. It’s efficient for traders who belong to other short-term types or those who trade during the day.
Simultaneously, if you like to plan out over more extended periods before trading carefully, stay away. There’s nothing wrong with strategies over more extended time frames.
But in the case of scalping, it might stress you out. Longer-term traders have no problem with keeping their positions open. All they do is decide their entry point, set their targets for profits, and place the stop-loss.
Once they do that, they survey the trade from time to time; this is for swing traders, usually manual traders who don’t use automated trading software for their daily trading.
Gunbot Suited For Scalping
It all comes down to what you’re comfortable with and your style of trading. Depending on that, do a careful analysis of your trading style. The aim here is to see if Gunbot Crypto scalp trading will work out for you or not.
Not only that, you need to narrow down on what type of strategies will pay dividends for you. Your plan must match your risk profile and personality to maintain consistency in your profits.
Even if you manage to narrow down on these factors, you would need to test them out. But don’t let it stress you out.
There are many test nets available on various platforms. Especially if you’re starting with margin trading, you should do a lot of testing before you trade live.
These test nets allow you to try out your strategies before you start trading with real money. Thus, there’s no risk of you losing funds on testing your trial strategies in this way.
In Conclusion
The scalping method is widely famous on crypto trading platforms. However, as we mentioned before, it’s a strategy that involves profiting off trades over short time frames.
Consistency is vital when it comes to being a cryptocurrency scalper. Before diving right in, you require the ability to make fast and sensible decisions and in-depth analysis of financial markets.
as a scalp trader, you need to be uniform and maintain discipline in your approach.
However, we will not advise you to practice scalping methods if you just started as a trader or if you’re trading without a bot. That’s because to make technical decisions swiftly, and you require the experience that one gains from long-term trades.
And that’s why we suggest that you begin by Trading with Gunbot and choose a ready-made profitable trading strategy.
As you do that, you’ll gain the necessary know-how for Gunbot Crypto Scalp Trading, such as how to size positions, DCA, and stop-loss. And these are vital as they teach you how to manage the risks that come with every trade.
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Originally published at https://cryptodroi.com on June 16, 2021.
