Guide: Master Crypto Swing Trading With Automated Bots

Crypto markets are famously volatile. Traditional markets will gasp at a 4% drop in the S&P, whereas BTC can drop 10% and that’s just another day in the world of crypto.

Swing trading crypto has become an increasingly popular trading strategy for day traders due to this volatility. Each price change provides an opportunity for profits. If you’re the type of trader who likes consistent trading and small profits then swing trading might be the right strategy for you.

What is swing trading?

You’ll see lots of different strategies described as swing trading but in general it involves trying to profit from market swings by making a number of trades over a short period of time, typically a day to a couple weeks. When it comes to crypto the rapid price fluctuations mean that you can perform swing trading on shorter intervals and often within a single day.

Swing traders may look at different indicators or data sources to determine when to enter a position, what their desired exit price is, what price range they want to trade within, and more.

How do trading bots help?

Trading bots are pieces of software that can automate your trading given a set of pre-defined rules to follow. When it comes to swing trading crypto trading bots are a popular tool since they can allow you to remain consistent, react to market changes immediately, and remove the element of human emotion.

Trading bots are not a guaranteed way to make a profit though, they simply automate your strategy. Just as when trading without a bot, it’s up to you to find the strategy that works for you.

Coygo Bots is one of many platforms that can be used for crypto trading bots but it has some unique features that make it a great option for swing trading in particular. It’s also free to try with each plan including a free trial!

Coygo Bots includes a number of configurable pre-built crypto swing trading strategies, with their code fully available to view or modify. Your exchange account credentials (for example your Binance or Kraken account API keys) are only stored encrypted on your machine so Coygo’s servers never have access to your funds.

Most importantly, for advanced traders you can code your own custom trading bot strategies with JavaScript code using Coygo Forge so that you can be in full control of your trading.

A simple crypto swing trading strategy - “static midpoint”

One very easy way to get started swing trading is to use the “Static midpoint swing trading” strategy within Coygo Bots. This is a trading strategy that focuses around a static midpoint rate, buying and selling as the price fluctuates around this midpoint.

  1. A limit buy order will be submitted at the configured percent below the midpoint price.

  2. When that buy order has filled an accompanying limit sell order will be submitted at the configured percent above the midpoint price.

  3. When that sell order has filled the cycle will repeat indefinitely.

This basic swing trading strategy can be used on Binance, Kraken, Gemini, Coinbase Pro, or any of the other exchanges supported by Coygo.

Advanced swing trading with the “grid” strategy

For a more complex strategy that can profit in a larger range of prices we can try “grid trading”. Grid trading is a popular trading strategy that has been used in both traditional and crypto markets for many years. It involves constructing a “grid” of different prices within a specific range which will be used to continuously buy and sell as the price fluctuates within this range. This is commonly considered to perform best in volatile but sideways markets when prices are fluctuating within a specific range.

Coygo Bots has a “Spot grid swing trader” strategy that does exactly that! The source code is open source and available to be viewed or modified so that you have full insight into what your bot is doing. (If you’re an experienced trader you can even change the code to fit your personal needs!)

If you’d like to try your own grid trading bot for swing trading you can follow this guide post: Create a “Grid Trading” Crypto Trading Bot With Coygo.

Alternatively you can follow along with this guide video:

Advanced crypto swing trading with the “ping pong” strategy

Another advanced strategy that can profit in any price range is the “Ping pong swing trader”. This swing trading strategy alternates between buying and selling to “ping pong” back and forth as the price moves. It buys when the price drops by a configured percentage within a specific time period, then sells at a configured percentage above that buy price. This strategy will try to increase profits by following a market trending upwards or downwards before buying or selling, with stop-loss and take-profit triggers in place to lock in profits and avoid losses.

Coygo Bots has a “Ping pong swing trader” strategy that can be configured with a different exchange or trade pair, custom buy trigger, custom target profit percentage, custom stop-loss trigger and more. The source code is also open source and available to be viewed or modified so that you have full insight into what your bot is doing, or even modify the code to your own personal preferences.

Create your own “Ping pong swing trader” bot with our guide: Make a “Ping Pong” Crypto Swing Trading Bot with Coygo, or follow along in this guide video:

Develop your own swing trading strategy

If you think you’ve got an idea for a better strategy then you can create it yourself using Coygo Forge. With some basic JavaScript code you’re able to access full real-time order book data and operate on intervals from 5 minutes to 1 second to even milliseconds! You could customize the spot grid trader strategy to monitor multiple markets at once, or use the profits for compounding returns, or you could create an entirely new strategy.

Good luck!

Swing trading is not for everyone, but if you’re the type of trader who likes taking advantage of small changes and seeking small consistent gains then it might be just what you’re looking for. Crypto swing trading in particular is an exciting challenge since prices can fluctuate wildly within a day. Good luck developing and refining your strategy!