Most crypto traders would have heard of Three Arrows Capital (3AC) implosion. Even the best traders can get wiped out by the market. As the legendary investor Warren Buffet used to say “Only when the tide goes out do you discover who’s been swimming naked.”, the collapse of 3AC just goes to show that even the best minds will fail.
In times like this, retail investors, and perhaps even the professionals, are ill-advised to take on leverage. But, traders still need to make a living. Are all strategies dead in the water? Not so, implied Jump Trading. In a recent Bloomberg article, Kanav Kariya (head of Jump Crypto trading unit) remained upbeat. It is believed that one of Jump’s most successful trading strategies is something call “grid trading” that lends itself to a commonly known market tool called “market making”.
Utilising high-frequency trades coupled with tight spreads, Jump Crypto was able to make market and earn a decent profit even in these tough times.
How can a retail trader participate in such strategy? The best way is to use a crypto trading bot that offers grid trading. Grid trading can be very complex. Hence, it is important to find a tool that distils the complexities of grid trading into a simple and easy to understand application.
