How to Use Bybit Trading Bots: A Step-by-Step Guide

The world of cryptocurrencies is one that never sleeps. This is why many popular exchanges like Bybit support automated trading. It is no wonder that many are eager to learn how to use Bybit trading bots to leverage their strategies and maximize profit. After all, what better way to keep up with the ever-changing market trends than with the help of automated trading assistance?

There are many trading bots on Bybit to fit whatever strategy or trading style you have, just like on other highly reputable platforms like Binance. Moreover, the platform’s intuitive interface can help you integrate these bots into your trading routine with only a few clicks.

Let’s find out how to use Bybit trading bots to streamline your trading processes. Who knows, maybe they'll help take your profits to the moon? Trader's discretion is advised, though!

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What is a Bybit Trading Bot

Before I go on with how to use Bybit trading bots, I want to give a quick rundown of what is a Bybit trading bot as a primer. This way, you will know what to expect from this tool and understand how to harness its full potential.

A Bybit trading bot is an automated program that helps investors buy assets at a low price and sell them at a high price on the Bybit platform. Think of these computer programs as your virtual assistants for cryptocurrency trading. They will immediately execute trades based on the parameters you have already set, so you will not miss rewarding opportunities, even when you’re away.

As such, many traders rightfully think that using a crypto trading bot on Bybit is making them more efficient traders. However, there are many more who are still unsure about using it due to not understanding its risks and how it works.

Plus, some beginner traders may feel intimidated by a potential learning curve. If that’s you, don’t worry, I will explain all that and teach you how to use Bybit trading bots in no time. First, let's understand how to set up your trading bot, starting from transferring funds.

How to Transfer Funds to Your Bybit Trading Bot Account

Before we start, let's get this step out of the way. After all, having enough funds in your Funding Account is a required step in how to use a Bybit trading bot.

While there are no Bybit trading bot fees, insufficient funds in your deposit will cause your bot to skip the parameters you have set and sometimes even terminate its operation.

Fortunately, topping up a trading bot on Bybit is a straightforward process. Here are the steps:

Step 1: Choose [Assets] from the right-hand corner of Bybit’s website.

Step 2: From here, you can click on [Funding Account].

Step 3: On the [Deposit] tab, choose the coin to buy and set its amount.

If your bot operation stops because of insufficient funds, it will continue after you top it up, provided that you do so within the ongoing bot duration you have set. Once the trading bot’s operation is terminated, the remaining funds will be returned to your Funding Account.

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How to Use Bybit Trading Bots

So, how to use Bybit trading bots? While some people might feel intimidated at the prospect of setting up their very first trading bot, the process of doing so on Bybit is extremely beginner-friendly.

You don’t need to have prior experience in setting one, although having a cursory knowledge of how to use Bybit trading bots’ parameters for each use case can get you up to speed faster. However, you can always learn on the go.

With that being said, here are the steps to use different trading bots on Bybit, namely Dollar-Cost Averaging (DCA), Spot Grid, Futures Grid, Futures Martingale, and Futures Combo (if you'd like to know the differences between them, go to the section "Types of Trading Bots on Bybit").

DCA Bot

Before starting with Bybit's DCA Bot, make sure that you’re already logged in to the right account you want to use for the setup and that you have completed the KYC check. Then, follow these steps:

Step 1: Open Bybit, then go to [Trade]. Click on [Trading Bot].

Step 2: On the Bybit Trading Bot page, choose [DCA] and click [Create Now].

Step 3: Set the parameters. The parameters you need to set are the currency you want to trade in and the cryptocurrency you want to buy. You can add up to five coins to invest within the same bot. You also need to set up the investment frequency and maximum investment amount if you want.

Step 4: Click [Create Now].

And that's it! Let's move on to another bot!

Spot Grid Bot

How to use Bybit's AI bot for spot grid trading? The underlying steps are similar to the previous one but have different parameters.

Step 1: Select [Trading Bot] from the Trade menu dropdown.

Step 2: Choose [Spot Grid Bot].

Step 3: Adjust the parameters. You can either set them up manually or with the AI suggestions. The parameters include a spot pair, price ranges, number of grids, total investments, and advanced settings.

With the last option, you can specify the prices for entry, stop-loss, and take-profit.

Step 4: Select [Create Now].

You can also create this bot by going to the [Spot Market] and choosing [Tools] > [Spot Grid Bot] from the [Order Zone] on the right side.

Futures Grid Bot

You can set up Bybit’s Futures Grid Bot in two ways, either via the trading bot page or the derivatives trading page. If you go with the former, the steps are pretty much the same as with the previous bots. If you go with the latter, do the following:

Step 1: Click [Derivatives] > [USDT Perpetual].

Step 2: Select [Strategy], where you can set parameters manually or using AI.

Step 3: Choose [Create Grid].

The notable parameters you can set include the short, neutral, or long mode, preferred leverage, price ranges, and number of grids.

Futures Martingale Bot

To set up a Futures Martingale Bot, you can do so from the trading bot section or the USDT perpetual trading page. Here are the steps to do so with the former:

Step 1: Navigate to the [Order Zone] > [Tools].

Step 2: Hover above the [Futures Martingale] option and click [Create Now].

Step 3: Set up the relevant parameters using AI assistance or manually.

Step 4: Choose [Create Now].

Mind that you can set up a maximum of fifty Futures Martingale Bots at a time. The parameters you have to configure include the type of contract, order direction, price decrease, leverage, profit target per round, and position multiplier, among other things.

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Pros

• Secure and reliable
• Low fees
• A good amount of fiat currencies accepted

Main Features

• Reputable exchange
• Multiple fiat currencies are accepted
• Relatively low trading fees

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Pros

• Fiat currencies - accepted
• Simple to use
• Accepts only the most trustworthy cryptocurrencies

Main Features

• A leading cryptocurrency exchange platform
• Best for beginner investors
• Accepts fiat currencies

See All Coupons of Best Exchanges

Pros

• Fully reserved and transparent
• Multiple tradable asset classes
• Early new token support

Main Features

• 265 supports cryptocurrencies
• Secure & transparent
• Fully reserved

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Futures Combo Bot

Last but not least is Bybit’s Futures Combo Bot. The steps to set it up are more or less the same as the other bots in this list, and you also have the option of whether to configure it manually or use AI assistance.

If manual, do the following:

Step 1: Add the contracts you want to trade and the investment proportion, either making it equal or adjusting it based on market cap.

Step 2: Enter your preferred leverage, either by moving the slider or by clicking the plus/minus buttons.

Step 3: Adjust the rebalancing feature by setting up the trigger, either by time threshold or both.

Step 4: Put in the total investment as a condition to trigger the take profit/stop loss mechanism if you want.

Step 5: Select [Create Now].

Still have questions? Countless resources in Bybit’s knowledge base and community can help deepen your understanding.

How to Create and Implement a Custom Crypto Trading Bot

For some people, Bybit’s existing tools just don’t quite fit their criteria. If that’s the case with you, knowing how to use a Bybit trading bot might not be what you’re looking for. Instead, you may want to know how to create a custom bot from scratch instead.

While the full step-by-step tutorial for creating a custom crypto trading bot is outside the scope of this article, there are many useful resources to get you started. Before you can create your own trading bots, you will need a solid understanding of various programming languages and how to apply them.

Regardless, it's worth noting that Bybit does support third-party trading bots. Here’s how to implement a custom-made bot into your Bybit account:

Step 1: Head over to Bybit’s account management page by clicking on your profile picture.

Step 2: Switch to the account you want to use.

Step 3: Scroll down and click [API].

Step 4: Click [Create New Key] to create a new API key.

Step 5: Connect the key with the custom bot you wish to use.

You can mix and match various tools at your disposal to achieve the best results. Just make sure that you have done your due diligence in ensuring that whichever tool you choose is safe.

How Does a Trading Bot Work

Now that you know the nitty-gritty of how to use Bybit trading bots, you might wonder about what really goes in the background when you set up a trading bot in your account.

Much like its counterparts, Bybit trading bots use artificial intelligence to sift through a massive bulk of data in order to provide traders with actionable insights and valuable recommendations. The Bybit AI trading bot ecosystem is powered by Aurora AI, an analytics tool with a powerful algorithm that can analyze market trends around the clock to identify potentially lucrative trading opportunities.

Aurora AI hosts a wide range of robust functionalities, such as in-depth analysis of market trends, insights into market-wide sentiments, and forecast modeling. The algorithm parses various data points collected from news sentiment and other market indicators to identify trends and patterns in price movements.

Bybit's AI trading bot algorithm is most notable for tailoring its suggestions based on traders’ risk profiles and preferences. Whether you’re looking for a small but steady return or confident in taking higher risks for maximum profit, Bybit AI can assist you in your goals. In fact, Aurora AI can generate up to 18 sets of recommendations that you can implement as parameters in your trading bot.

Types of Trading Bots on Bybit 

Investors eager to learn how to use a Bybit trading bot have plenty of great options to choose from. There is something for everyone, regardless of investment goals, risk profiles, and trading styles. Besides, you don’t need to invest in upfront Bybit trading bot fees to use the platform’s AI-powered technology.

There are five main trading bots on Bybit I’ve covered the usage of—each of them comes with its own robust features and notable advantages. Not sure which one to choose? Let’s quickly go over their use cases.

That said, let’s now take a look at the types of trading bots on Bybit and what strategy fits them the best so you can start evaluating your choice as soon as possible!

Dollar-Cost Averaging (DCA) Bot

Dollar-cost averaging is one of the most popular crypto bot strategies, where traders regularly invest a fixed amount of capital into a cryptocurrency asset despite price fluctuations. This approach is usually recommended for those who want to generate consistent gains over time regardless of market uncertainties.

This bot is suitable for those unconcerned about technical analysis and short-term market volatility. In short, it’s optimized for those who want to hold their assets long-term and those whose trading styles rely on the bear market.

This bot will buy a predetermined amount of assets regularly without considering costs. The success of this strategy depends on averaging asset purchases at their highest and lowest points.

Spot Grid Bot

Spot trading is a strategy where you buy and sell cryptocurrencies at current market prices. It’s recommended for active trading, where you profit from the price changes of the asset you bought. A Spot Grid Bot automatically buys assets at a low price and sells them at a high one.

This kind of bot strategy is ideal for markets with massive price fluctuations. To reduce the risks of losses, you can configure the limits of the lowest and highest prices.

However, remember that the trading fees for this strategy might be higher compared to other types of grid bot trading options. The reason for this is because you are trading on the spot market. Although there are zero Bybit trading bot fees to worry about, the spot trading fees are still worth keeping in mind.

Futures Grid Bot

Next on the list is the Futures Grid Bot, which works similarly to Spot Grid, but this one trades in the futures market. As such, you can trade using leverages because you’re in a derivative market, and this results in lower trading fees compared to spot trading.

The Futures Grid Bot offers three modes: long, short, and neutral. This makes the bot ideal for a wide range of markets, whether they’re up-trending, down-trending, ranging, or sideways.

Here’s a short explanation of what each mode does:

• Long: The bot immediately buys the asset you have set and starts trading it right after. This mode is suitable when the price of an asset is at a high point and can benefit you in an up-trending market.
• Short: The bot will sell an asset and buy it back at much lower prices, ideal for when the price of an asset is at a low point. You will benefit from this bot’s strategy in a down-trending market.
• Neutral: No initial position. Your asset will be sold or bought depending on the grid fluctuations. Traders in sideways and ranging markets can greatly benefit from this mode.

To avoid liquidation risks, you have the option to configure the parameters for Take Profit/Stop Loss actions when using the Futures Grid Bot.

Futures Martingale Bot

Futures Martingale Bot is an AI-powered trading bot that’s geared for short-term, active trading. It trades perpetual contracts using the Martingale strategy, where the bot doubles the stake after incurring losses to recover and earn profits.

With this bot, you can take both short and long positions during your trade to benefit from price reversals. The positioning will automatically be adjusted based on market conditions, which makes it perfect to be used in a market with sideway trends.

This bot might also benefit those trading in a volatile market, thanks to the way it recovers from initial losses. For instance, if a coin’s price falls when it’s expected to rise, the bot will double its position size when it’s at a lower price, so it can potentially sell higher when the price is reversed later.

When using this bot, traders should be extra careful to manage their risks using proper risk-mitigation techniques to prevent liquidation and running out of capital in the long run. Overall, this strategy is recommended for those who have been trading for some time.

Futures Combo Bot

Using this bot, you can manage multiple futures contracts in a single portfolio. If you’re the type of trader with a diverse portfolio while keeping things simple, this might be the suitable bot to accompany your trading journey.

With this bot, you can include two to ten contracts in your portfolio and maintain them using the automatic rebalancing features. Plus, it can act as a flexible tool, easily adaptable to various strategies and parameters.

Why Use Bybit Trading Bots

Trading bots might sound fancy, but do you really need them? If you’re a trader, perhaps the most important question is: “Is the Bybit trading bot profitable?”. All those questions can be answered by learning more about what these handy tools offer.

Before starting with how to use Bybit trading bots, you must first know why you want to even use them in the first place. After all, you must weigh every benefit and risk when making an informed decision.

Timeliness and efficiency are two primary reasons why so many traders consider trading bots a necessity. As mentioned previously, this tool can execute trading decisions automatically based on a set parameter.

In a world as volatile and fast-moving as the cryptocurrency market^[1], gains and losses are often determined in a matter of milliseconds, so having a bot automating some of your trading decisions can be a lifesaver.

Not only that, some trading strategies like arbitrage can greatly benefit from the assistance of bots^[2]. This is because that sort of strategy requires traders to buy and sell the same asset from different markets to gain profit from the price differences. Automating the process using bots can greatly benefit and keep you ahead of the curve in spite of market fluctuations.

Another reason why you may want to use Bybit trading bots is that it has an extremely low entry barrier. First of all, you don’t have to worry about the platform incurring extra charges for Bybit trading bot fees. You just need to pay trading costs, which you would have already done when using the services normally.

What’s more, Bybit’s AI-powered trading bots are created with reliable coding that ensures the speed of operations while minimizing errors. The low-latency trading that Bybit is famous for is one of the reasons why it has an edge over many of its competitors.

In short, is the Bybit trading bot profitable? Well, it depends, but it'd be helpful if you knew how to use the Bybit trading bot to its fullest potential.

How to Choose the Best Trading Bot Strategy

Now that you know how to use a Bybit trading bot, you might wonder: between all the variations, which bot to choose that'll best suit your strategy?

There is no one-size-fits-all formula when it comes to the best trading bot strategy. It all ultimately depends on your financial goals, your trading style, and your overall risk profile. However, you can follow some good rules of thumb when deciding which bot fits your methods the best.

First, research the most popular strategies other traders often suggest within the crypto community. By reading other people’s Bybit trading bot reviews, you can take note of what works and what doesn’t so you can modify the bot strategy and its parameters accordingly. Make sure to do a test run first before deploying the bot live to see if that’s what you want.

Second, make sure that you don’t over-leverage to amplify your potential gains. While this might be tremendously profitable if you’re extremely lucky, it also increases the risks of losses and liquidation.

Impulsive trading should also be avoided. Maintaining restrictions and discipline when investing is crucial for making level-headed decisions. It’s best to stick with a clearly defined goal from the start and tailor your plans according to your main objective, especially if you don’t have much experience in trading yet.

Finally, continue learning and adjusting your Bybit trading bot strategy. Over time, your understanding of the market will grow alongside your portfolio, and you can modify the configurations of your bots using that knowledge.

When defining your new parameters, consider factors such as asset allocation, risk management, and position sizing. Doing this can ensure consistent bot performance and prevent potential losses.

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Conclusion

Bybit trading bots are powerful tools that can take your trading strategies to the next level. Not only can it minimize the risk of impulsive decisions, but it can also save you time and yield more optimal results. This is why understanding how to use Bybit trading bots can be highly beneficial to you in the long run, regardless of what type of trader you are and your level of experience.

Although using a trading bot for Bybit is not without its own risks and challenges, you can mitigate those potential downfalls with a smarter use of the tool. Begin by adjusting the bots to your trading style and investment goals.

More importantly, always exercise discipline and due diligence when it comes to making any investment-related decisions. By being strategically minded and forward-thinking, you can utilize the power of the best Bybit trading bot to its fullest potential.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Daryani M., Jazayeriy H.: SPA Bot: Smart Price-Action Trading Bot for Cryptocurrency Market;

2. Kostal K., Okasova K.: Using Machine Learning for Predicting Arbitrage Occurrences in Cryptocurrency Exchanges.