Swing Trading Bot Strategy: A Full Overview

Swing Trading Bot Strategy: A Full Overview

Do you use the Swing strategy for crypto trading? Do you use the Scalp trading method? Are you someone who goes long or short? One of the attractions to cryptocurrency is related to the multiple ways to make good profits in this digital currency trading game.

This is strictly about the trading aspect, and does not have anything to do with collecting interest or lending in this market.

It’s just about the trading activity. There are so many strategies, seasoned and newbie cryptocurrency traders can use to achieve substantial or cumulative gains in this market. 

Some of these strategies include exchange arbitrage, short or long strategies, mirror trading, market making, etc.

To be honest, every one of these trading strategies is likely to be beneficial, but you need to know how to optimize your gains.

It is vital to your trading game to research and learn each crypto trading strategy as they stand on their own before you can become a pro trader.

You also need to fully understand the essentials while you continue to grow and learn as you become a seasoned trader. Even seasoned traders can learn a few things about new strategies. 

This article is going to discuss the basics of swing trading. You will discover how it works if automation using bots is a good option, and how it can help you grow your portfolio. 

Top-rated Crypto Trading Bots

RankCrypto BotPrice
1Bitsgap7 DAYS FREE
2CoinruleVisit

The Cryptocurrency Swing Trading Strategy

Cryptocurrency Swing Strategy

Before you can start swing trading, you need to know what this method involves, how it works, and how it is used in the trading markets.

Your first goal is to get your mindset in the game before you approach trading. You will need to be disciplined, have patience, and get a grasp on what direction you are going with it. 

It is not uncommon for swing traders to make mistakes when trading XRP, Ethereum, and Bitcoin. Therefore, they start to doubt themselves, wondering if they can handle this type of trading strategy.

Truthfully, the elementary principle of buying digital assets (same as in the traditional stock market) is to buy low and sell high.

Selling at the higher price is what the crypto trading ideal is based on. Swing trading is essentially just another arm branching off of this fundamental concept in trading.

The exception is that you add time. You need to perceive the cryptocurrency market differently as a swing trader instead of looking at the market movements from minute-to-minute. 

When you are swing trading, you will purchase assets one day, but you will wait a couple of days before selling.

This strategy requires more patience than that of the traditional day trader ideal. Patience is the main factor that makes swing trades work for you. 

Consider this. The day traders are constantly on and off the market multiple times per day, whereas, swing traders are more apt to hold onto those assets longer before selling.

Day traders tend to desire quickly buying and selling to get their cumulative gains as they add up each day.

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Time and resources are things that most individuals simply do not have for day trading, which is amplified when performing trades manually.

Swing traders are different. They check out the crypto trading market and grab a few assets. 

After they have held onto these assets for a few days, they find an ideal time to sell.

Swing traders take the time to concentrate on life as opposed to keeping their eyes on the computer and checking the market several times a day.

Instead, these traders are more apt to check prices daily or weekly.

There is less stress in the swing trading strategy, plus you aren’t glued to your computer screen or other device.

Selling By News and Numbers

Swing Trading 621

Another way that swing traders look at the market differently is that they check for unique events that might increase the prices of digital assets.

They prepare themselves, they buy certain assets prior to said event, and then they hold out to see what happens before making a move. 

So, if you see a switch coming up in an event that might have a substantial effect on a certain cryptocurrency, you would trade based on that information. 

These traders do not wait until the day off said event, but before that. Afterwards, they see what happens from that event.

Another good example involves the halvening of Bitcoin where you would trade ahead of time and then check out the change in price. These trades are news and events-based. 

There is also a technical side to the swing strategy. Professionals in this trading market appreciate the technical analyses because it helps them with their trading.

They watch for patterns, signals, and trade on the bearish or bullish markets. They use these analyses as indicators of patterns to help them better predict the market. 

Remember, nothing is perfect or sure in any trading market, but the analyses can make a difference. You are constantly dealing in what is probable, not certain.

Signals and patterns within the cryptocurrency market show how the general trading market is reacting at each moment in time.

Charting helps to aggregate and uncover how other traders are behaving. It is a psychological thing.

Traders who use the swing strategy choose to speculate in the crypto market, which seems to be a viable solution for this market.

Can You Use Bots with the Swing Trading Strategy?

Most generally, you can see multiple cryptocurrency assets with swing trading bots, which also notify you based on negative and positive results.

Bots may also provide you with future events and broader market options than you might normally obtain.

A few other benefits of swing trading bots include getting the jump on aspects such as momentum purchases, portfolio views, and routine-oriented triggers, etc.

Automating your swing trading with the right tools can help you better predict and plan your digital asset buying and selling.

The best ones offer streamlined experiences with regard to diversification of assets, and the acquisition and notification alerts. Keep in mind that bots are not likely to do all the work for you, so you still need to be directly involved in your trades. 

Also, bot trading strategies based on swing trading rely primarily on timing and indicators. They may also see things that help you make smarter trades. 

So, yes, you can use bots for swing trading if you use the right tools.

Is There Profit to Be Made in Swing Trading?

Swing Trading

In the long-term, it is profitable to use the swing trading strategy in cryptocurrency markets. This market moves and fluctuates quickly, making it less gracious than other trading markets.

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You may see losses as well as gains, depending on the digital assets in which you trade. Many crypto traders think cryptocurrency is a beautiful thing because of its volatile nature.

The gains often come as you wait them out during the ups and downs that occur daily and weekly. The whole idea is to notice these movements to optimize your swing trading strategy.

The Pros and Cons of Swing Trading with a Bot

Everything we do in life has advantages and disadvantages. Bot swing trading in the crypto trading market is no exception to this rule.

Pros
  • Swing trading comes with the benefit of not having to be at your computer all day, or even consistently. With this strategy, you should be able to configure your parameters and live your life as normal while you keep a daily or bi-daily eye on your trades. Another benefit is that it will not take you away from your job like some trading strategies are prone to do. You can net a larger profit by aggregating the value of your trades over the long term instead of little gains here and there by being stuck at your computer for most of your day.
Cons
  • It is harder to be patient for some traders than others, but it is worth it in the long run. So, being patient is going to be a disadvantage for some of you. The reason for this is that swing trading tends to move more slowly, or at least it feels that way since you are holding the assets instead of selling them right away. Effects from some events in the market may affect your trading behaviors. Things can happen overnight that do not work well with your strategy when you are perceiving it from the day-to-day view perspective. Since you are not into this daily, you have more assets at risk, so certain events and factors will affect your results. It may cause you to wait it out longer than day traders do.

Top-rated Crypto Trading Bots

RankCrypto BotPrice
1Bitsgap7 DAYS FREE
2CoinruleVisit

Conclusion 

Ultimately, each individual must decide what cryptocurrency trading strategy is best suited to them. You need to trade in a way you are most comfortable and confident.

If you are more comfortable with short-term, smaller gains in the market, that is where you belong. If you have the patience to wait things out a bit, the swing trading strategy is something you should try. 

As with all forms of crypto trading, there are pros and cons in swing trading, whether you are using automation or not. 

If you decide to use automation, we recommend Bitsgap or Quadency for your trades.

Do your research and choose the ideal automation tools for your swing or other trading strategies.

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Avatar of Jonathon Spire
My diverse background started with my computer science degree, and later progressed to building laptops and accessories.And now, for the last 8 years, I have been a social media marketing specialist and business growth consultant.In my spare time I dabble in crypto and various types of automation.
Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon