Pionex

Pionex is an exchange as well as offers futures, leverage, and Margin coin trading. They have fewer currencies and tokens than more extensive exchanges like KuCoin, as Pionex primarily encourages grid bots and arbitrage trades.

Pionex has 12 free in-built trading bots which automatically trade your cryptocurrency. Each bot operates with a different algorithm to target a different market condition. Pionex charges a 0.05% trading fee, but they do not charge for any of their bots. All of their bots are free for users to customize.

Trading bots are essential for those who want to competitively participate in cryptocurrency arbitrage and profit from the market’s volatility. Without automation and AI, a human trader just can’t catch the price shifts as quickly.

Users can customize up to 150 different Grid Trading Bots with Pionex. Reports from the platform state that they will soon offer users the ability to build 500 unique grids.

When Pionex traders use their crypto bot, they do so on their exchange without any API Keys. API keys are used to identify the project making the call to your device, which is either the website or the application to the programming interface.

They also only operate using cryptocurrency. Users will only ever need a digital wallet and can transfer the desired funds from their current digital wallet to the exchange for trading.

Pionex pioneered trading Grids. Grid trading is the main way that bots execute trades, as trading grids are strategic tools that work best with fluctuating markets. Grids profit from a series of long and short orders executed at set intervals. They are auto executed to correspond with orders to sell high and buy low. When set to, they will sell the desired cryptocurrency when the price of that cryptocurrency is higher than the purchase price.

The Pionex bot allows users to customize the grip parameters for 150 grids. Once activated the system automatically buys and sell order based on the pre-set determination. Profits can be increased with multiple grids to capture the frequent fluctuations in the market.

With multiple trading grids, it is possible to earn steady passive income. After the user has set the limits of each order for each cryptocurrency, they do not need to do anything else. Bots are ideal for helping to avoid and emotional decision making. Instead, plan based on the movement of the market, and then the bot does the work. And, bots work all the time, which a human cannot do.

Currently, there are 12 pre-built crypto trading bots on Pionex. These bots are free, as Pionex makes their money from commission fees. Below are 10 of the bots described.

• Grid Trading Bot
• Leveraged Grid Bot
• Margin Grid Bot
• Infinity Grid Bot
• Reverse Grid Bot
• Leveraged Reverse Grid Bot
• Dollar-Cost Averaging Bot
• TWAP Bot
• Trailing Take Profit Bot
• Spot-Futures Arbitrage Bot

GRID Bot (Grid Trading Bot): The bot works by setting a range for buy and sell limits. Then this bot automatically buys low and sells high within the price range of the cryptocurrency you have selected.

Infinity Grids Bot: The Infinity bot removes the upper limit so that you can profit from price pumps. This bot helps to catch profits that are trending upwards. It still uses the same basic feature of buy low, sell high.

Leveraged Grid Bot: This bot combines GRID with a loan feature. This bot enables up to 3x leverage possibility. A note of caution, this bot will liquidate as well as leverage if that is what limits are met.

Margin Grid Bot: Margins are a modification of leveraging cryptocurrency. With this bot, users can set it to choose either LONG or SHORT margins. However, with this bot, the collateral does not involve the Grid Bot in Margin Grid Bot.

Reverse Grid Bot: Reverse sells your Bitcoin at a higher price and sells it at a lower price, so it is easier to increase the quoted amount with this strategy.

Leveraged Reverse Grid Bot: Combines Reverse Grid Bot with a loan feature to Leveraged Reverse. This bot allows for even more profits with leverage to earn more profit. Note: mind the risk for the liquidation with leverage trading.

DCA Bot (Dollar-cost averaging): this bot performs dollar-cost averaging for the user.

Trailing Take Profit Bot: A trailing stop protects gains by keeping a trade open to continue profiting so long as the price is moving in the investor’s interests. The order will close if the price changes directions.

TWAP Bot: This bot sells the asset over a period of time instead of all at once. Time-weighted Average Price. Using this bot, the trader disperses a large order into several small orders. The value of these orders is the TWAP price, which has the most practical value. Huge orders, from whales, for example, can suddenly increase the value of a coin.

How to use the Grid Trading Bot on Pionex

STEP 1: Deposit funds into Pionex account

STEP 2: Choose a Trading Pair and Set the Parameter for GRID Bot

There are two modes for using a GRID Bot: AI Strategy and Set Myself

AI Strategy: AI mode can be used for those who are new to bots.

Set Myself: Set Myself allows users to create their own strategies.

The bot will create the following information:

AI Strategy

• Estimates coin volatility over the past seven days from backtesting: By using the aggregated data, the bot decerns the upper and lower values of the range for inner swing trading
• Splits the allocated amount to your chosen trading pair: This sets up a grid with limit buy and sell orders within the channel.
• You’ll see the recommended Price Range and Profit Per Grid as a preview. All you’ll need to do is to use the slider to choose how much of your funds you want to use.
• Buys/Sell: once the price reaches one of the above parameters, the bot will sell crypto-A, taking profits in crypto-B, then as soon as the price goes down, it sells crypto-B.
• Once you have completed creating limits, then click CREATE, and the bot will start trading.
• This repeats so long as the price remains within the channel.

Set Myself Mode:

• Manually adjust the price range, the number of grids, and the distance between each of them.
• The minimum distance between grids must be greater than the size of the commission (0.05% on the traded coin) multiplied by two for the bot to trade in profit.
• Check the performance of your bot every day (and make adjustments if necessary).

To use “Set Myself” the following parameters are required:

• Upper Limit Price
• Lower Limit Price
• Number of Grids
• Total Investment for the Bot
• (Optional) Trigger Price
• (Optional) Stop-loss Price
• (Optional) Take Profit Price

After the bot is created, you must permit it to re-allocate the two coins of the chosen pair, the trading pair. So long as the price of the trading pairs remains in your pre-sets, this will trigger buys and sells within your price range.

The bot slices the range from 5000 to 8000 into 10 sections (or Grids) and then places orders in each section. Users earn profits for every set of buy or sell that is triggered by the pre-sets.

With the Stop-loss price, the grid is canceled once the price drops below the limit.

Arbitrage Bot, Risks, and Solutions

Because most investors hold their crypto in a prolonged position, they must pay to fund the rates of those in a short position. Arbitrage holds a short position in the perpetual futures market and buys the same amount in the spot market. This allows the bot to hedge on your total investment.

You cannot decrease your position in the spot market simultaneously that the auto-deleveraged occurs in your future position. Consequently, this may cause your bot to liquidate on the short position because you can’t close the futures position in advance. Liquidation is often a risk with bots.

Pionex attempts to eliminate this problem with a bot for spot-futures arbitrage. The bot detects your position in the spot and the futures market. It then maintains a market-neutral position, even when auto-deleveraged (ADL) occurs. So, the bot will close your futures position 5% before the liquidation price. This way, you are not liquidated and do not pay a liquidation fee.

Perpetual Futures Contracts

Arbitrage works in conjunction with perpetual future contracts. Traditional futures contracts settle on a monthly or quarterly basis. When settled, the contract price converges with the spot price, then any open positions expire.

Perpetual futures contracts do not have an expiration date, which means that traders are able to trade perpetual futures the same way as spot trading (instant purchases). Exchanges use a Funding Rate as the mechanism to ensure that futures prices and index prices meet regularly. The varying exchange funding rates are part of what makes arbitrage possible.

Pionex offers bot users a lot of potential by having made bots very accessible.

However, one limitation of their bots is that there is no bidirectional trading. Which means that you cannot trade with a single trading pair in both directions, up or down.

The 12 bots and 150 potential grids are free from Pionex. The platform earns an income from commission fees which are a flat 0.05%.

The platform is well funded because they are a part of Binance and Huobi’s market-maker. This partnership allows Pionex to aggregate a significant amount of liquidity from these exchanges. They trade an estimated $30 million a day.

Once users have accumulated over $100,000 assets on Pionex, users can apply for their top Market Maker program, which offers a 0% maker fees. The taker fee remains 0.05%. As a result, those who hold a significant portion of any given cryptocurrency traded with Pionex benefit substantially from this program.

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Pionex has a reasonable number of resources available on its blog. However, they are not the best resources to learn about trades and how best to utilize trading bots. The users themselves make the best resources. So, check out YouTube tutorials on Pionex bots, as there are a number of them.

There is an extensive FAQ section which has answers to many common questions. However, these are specific to the platform and their trading bots, so it is better to check out a how-to video if you are learning how to trade with bots.

Pionex only offers customer support via Telegram and email.

Their blog has a reasonable amount of feedback in the comments sections. It appears that the company is actively responding to concerns and support issues. But there does not appear to be a great deal of one-on-one support if that is what the user needs.

In April of 2020, Pionex was granted the U.S. MSB (Money Services Business) License by the U.S. Treasury Departments Financial Crimes Enforcement Network (FinCEN).

Pionex tracks how many days they have been in operation on the home page without any attacks or security breaches.

They are also a Binance broker and have procured investments from Gaorong Capital, Shunwei Capital, and ZhenFund, valued at more than 10,000,000 USD.

Pionex is an exchange but significantly operates pre-built trading bots 24 hours a day, 7 days a week. They are the first exchange to aggregate liquidity from both Binance and Huobi Global. With the combined liquidity from leading global exchanges, Pionex ensures that it can match the orders that bots need to continue performing.

Their trading bots are an excellent way to utilize bots and catch arbitrage profits. However,  bots are not necessarily intuitive for everyone, and it is essential to run simulation trades and grids for a while. Once you feel more comfortable with the program, you can start trying trades in the real world.

Although the platform promises profits, THIS IS NEVER A CERTAINTY. With any kind of trading, there are risks involved. However, using bots to trade is faster and eliminates emotional trades, and therefore there is a lot of potential for crypto earnings. While many users report comfortable earnings, these are skilled traders who have been working at the skill over time. You may see instant profits, but allow yourself the time to grow them slowly for the first little while until you are more comfortable with bots and arbitrage techniques.