Pionex an exchange with built-in trading bots.

I recently stumbled upon this new exchange that is betting on attracting some of the US customers that are affected by the decision of Binance to ban their US customers on their regular exchange.

UPDATE: Promotion going on on Pionex right now!

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So if you’re affected by the recent changes on Binance and you still want to trade on an exchange with the same liquidity that Binance had this might be what you’re looking for.

But what caught my eye was not yet another exchange but the fact that they had built-in trading bots. Or at least automated tools which most exchanges lack. Tools that would require you to buy a separate license for a 3rd party trading platform such as 3commas. And here it’s offered as part of the exchange.

About Pionex

Pionex is a crypto exchange that is designed by a traditional brokerage system provider with experience in Forex trading.

  • BitUniverse invested and incubated Pionex Exchange. ‎BitUniverse is an all-in-one cryptocurrency manager to track in real-time the price of all kinds of cryptocurrency and is very popular in Asia.
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  • Pionex aggregates the liquidity from Binance and Huobi two of the biggest exchanges in the world.
  • Pionex trading fee is a flat 0.05%!

Built-in trading bots

The advantage here is that you won’t have to set up API keys as Pionex hosts the bots and provides the liquidity from Binance and Huobi. Let’s see what sort of bots are included?

Trailing Take Profit

This is not a bot as we would define it. What it does is it adds trailing take profit to your manual orders. Imagine you want to sell some BTC for USDT but you think the market might rise a bit more before reaching its peak.

Suppose you want to sell your BTC at 11K. Now if you set a 5% trailing stop when 11K is reached the trailing starts. It won’t be sold until it drops by 5%. If it goes all the way up to 12K without dropping more than 5% nothing happens. When it drops by 5% a sell order is placed in this case at 11.4K. Rather than just selling at 11K it trailed the price by 5% until the maximum was reached.

I would not consider this a trading bot but it’s a very useful feature that is not included in most cryptocurrency trading platforms and that requires you to run a separate 3rd party interface like 3commas, Cryptohopper, Apex, Zignaly …etc

Grid Trading

Grid trading gives you the ability to execute trades within a range. This is an interesting strategy for sideways markets that stay within a range.

You define an Upper Limit Price, Lower Limit Price, Number of Grids, Amount Per Grid, and Stop-loss Price (Optional).

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The Upper Limit Price is the top of your range or where you expect the major resistance level to be, the Lower Limit Price is the bottom of your range or where you expect your support level to be.

Number of Grids defines the subdivision or your range and the Amount Per Grid sets the size of your orders per Grid. When the market goes down the bot will buy gradually on the way down and when the market goes back up it will gradually sell on the way up within the range. If ever the Stop-loss Price is reached all will be sold back into your base currency.

There’s also an AI strategy that will advise you which parameters to set based on data from the last 7 days.

There’s a special implementation called Infinity Grids. As I understand you don’t have an Upper Limit Price, the grids are relative, not absolute. Of course, when you have a clear fixed range it is better to not use this bot as not all will be sold when the resistance level is hit and not all bought when support levels are reached. It’s not optimal in case of clear ranging markets. But during a bull run, this is of course much better as not all coins are sold when the resistance level is reached. In the event of a bull run or a pump, or simply when the resistance level is broken this will offer a much better return.

This bot is similar to the trading strategy used by GSMG.io

DCA bot

This bot buys a coin at an interval you specify.

Currently, there are 8 time intervals for the DCA strategy: 10 Minutes, 1 Hour, 4 Hour, 6 Hour, 12 Hour, 1 Day, 1 Week and 1 Month. The advantage here is that when you buy into a coin this way your cost will be averaged and you avoid going full-in during a FOMO moment based on emotion. It’s a more sensible way to invest. This is a good strategy for those wanting to invest a fixed amount regularly. Say each month you want to invest $200 into Bitcoin at a daily interval. Every month you deposit the $200 and the DCA bot will allocate the money to spend daily automatically.

Time Weighted Average Price (TWAP)

Selling of a large amount in one order is most likely going to affect the market, with an adverse effect on the price. Therefore if you trade large amounts it’s better to sell off in chunks. TWAP has 5 different Order Periods for the TWAP strategy: 1 Hour, 6 Hours, 12 Hours, 1 Day, and 7 Days. TWAP is a strategy of executing a big order, as multiple smaller orders, over a specified period of time.

Supported coins

The coins supported are ideal for bot trading.

Conclusion

If you want to try bot trading but don’t want to spend an extra $10–$100 on a separate bot or you don’t want to implement your technical analysis strategy then this bot might be ideal for you as it offers a very low entry into bot trading.

One downside: there is no paper trading to test the bots, so you need to deposit a small amount to test it out.

Upside: low trading fee, top liquidity, trading bots

Disclaimer: I haven’t tested the bots enough to give an honest opinion on the quality or performance but I’m currently running the bot for 2 days and results I’m getting will be updated daily as long as the promotion is ongoing.

after 2 days

After 3 days!

After 4 days!

The above references an opinion and is for information purposes only. It is not intended to be investment advice and may contain affiliate links. Seek a duly licensed professional for investment advice.

Happily hopping up and down on the cryptocurrency markets