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This video is for demonstration only. The actual situation may be subject to market conditions and platform rules.
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1. What is grid trading
Grid trading is a type of quantitative trading strategy that automates buying and selling. It is designed to place orders in the market at preset intervals within a configured price range. To be more specific, grid trading is when orders are placed above and below a set price according to arithmetic or geometric mode, creating a grid of orders at incrementally increasing or decreasing prices. In this way, it constructs a trading grid that buys low and sells high to earn profits.
2. Types of grid trading
Futures Grid: An advanced grid that allows users to tap leverage to amplify margins and profits.
Spot Grid: Automatically buy low and sell high, seize every arbitrage window in a volatile market.
Spot Infinity Grid: This is an advanced version of Spot Grid.
3. Get started with Futures Grid
Step 1: For app: Home -> Bots -> Futures Grid; For web: Home -> Wealth -> Grid Trading -> Futures Grid
Step 2: Select Futures Grid, click on "+Create"
Step 3: Select a trading pair, such as BTC/USDT
Step 4: Set up grid parameters. You can select Auto or Manual
Auto: The system calculates optimal parameters based on historical data. Ready to use with one click.
Manual: Customize your own strategy by setting the price range and grids based on market volatility analysis.
Step 5: Set leverage and investment amount. You can also configure SL based on your preferences, which will automatically stop and close your position when the SL is triggered.
Step 6: Create ✅
4. Get Started with SpotGrid
Step 1: For app: Home -> Bots -> Spot Grid; For web: Home -> Wealth -> Grid Trading -> Spot Grid
Step 2: Select Spot Grid or Spot Infinity Grid, click on "+Create"
Step 3: Select a trading pair, such as BTC/USDT
Step 4: Set up grid parameters. You can select Auto or Manual
Auto: The system calculates optimal parameters based on historical data. Ready to use with one click.
Manual: Customize your own strategy by setting the price range and grids based on market volatility analysis.
Step 5: Enter investment amount
Step 6: Create✅
5. Terms
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Backtested 7D Annual Yield: The auto-filled parameters are based on the 7-day backtest data of a certain trading pair and should not be regarded as a guarantee of future return.
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Max. Price: The upper price limit of the grid. No orders will be placed if prices rise above the upper limit. (Max. Price should be higher than Min. Price).
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Min. Price: The lower price limit of the grid. No orders will be placed if prices fall under the lower limit. (The Min. Price should be lower than Max. Price).
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Grids: The number of price intervals within the trading range for placing orders.
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Investment Amount: The total amount of digital assets that will be allocated by the user for the grid strategy.
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Profit/Grid (%): The profits (fees deducted) made in each grid will be calculated on the basis of the parameters that users set.
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Arbitrage Profit: The difference between a completed sell order and a completed buy order within the grid strategy.
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Unrealized PnL: The profit or loss generated in pending orders and open positions.
6. Advantages and risks of grid trading
6.1 Advantages
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24/7 automatically buys low and sells high, without the need to monitor the market
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Uses trading bots that free up your time while observing the trading discipline
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Requires no quantitative trading experience, friendly to beginners
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Enables position management and reduces market risks
Futures Grid has two more edges over the Spot Grid:
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No locked positions – funds stay flexible
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Higher leverage, amplified profits
6.2 Risks
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If the price falls below the lower limit in the range, the system will not continue to place the order until the price returns above the lower limit in the range.
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If the price exceeds the upper limit in the range, the system will not continue to place the order until the price returns below the upper limit in the range.
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Funds may not be used efficiently. The grid strategy places orders based on the user's set price range and grids. If too few grids are set up and the price stays within one interval, the bot won't place any orders.
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Grid strategies will stop running automatically in case of delisting, trading suspension, and other incidents.