I get asked a lot how I make money in sideways markets. The honest answer is I let grid bots do the work.
The way it works is simple. The bot sets a ladder of buy and sell orders around the current price. Price drops, it buys. Price climbs, it sells. I am not calling tops or bottoms, I am just getting paid every time the price moves around in a range.
What a lot of people don't realise is that all those fills pile up as volume, and on
@Aster_DEX that volume also earns liquidity mining rewards. So the same money is earning me two ways at once. The grid takes the spread, the volume farms the rewards.
Pairs I like for this:
- Mid-caps that bounce around in a range, that is where grids make the most
- BTC and ETH if I want something slower and lower stress
- I stay away from thin pairs where the spread kills you, and dead stablecoin pairs that barely move
And when the market makes a big move:
- If it rockets up through my range, the bot sells the whole way up and then just sits in cash. I still made money, just not as much as if I had held
- If it dumps hard below my range, I am left holding at my buy levels. That is the one that can hurt
- So I keep my range wide, size the orders small enough to survive a trend, and set a stop when I am running it on something wild
It will not make you rich overnight, but it stacks up, and it runs whether I am at my desk or on a beach somewhere. $ASTER