1. What is grid trading?
Grid trading is a strategy
Users can buy low and sell high within a user-defined price range to earn arbitrage profits
This strategy is suitable for profiting from market fluctuations.
However, when the market rises or falls sharply, grid trading will bring some losses to the user.
2. There are two types of grids: Arithmetic grids and Geometric grids
Geometric means that the difference between each number is the same, while Arithmetic means that the difference between each number % is the same.
For example :
Geometric: 2, 4, 6, 8, 10, 12 (the difference between the values of each grid is 2)
Arithmetic: 1, 2, 4, 8, 16, 32 (the profit of each cell is the same: 200%)
3.How to set up grid trading?
3.1 Custom strategy or AI strategy ?
In AI strategy, the price range and the number of grids are set automatically by AI, the system runs the grid range according to the past 7 days, and the default number of grids is 20 grids with equal difference, the user only needs to input two steps as shown above:
- Input assets: input assets divided by the number of grid cells that is the amount of each cell used
- Stop Loss and Take Profit Price: Recommended
In the customization strategy, five steps need to be entered:
- input asset: the input asset divided by the number of grid cells, i.e. the amount used per cell
- Equiproportional grid, Equivariant grid
- number of grids: divide the highest and lowest prices in the range into corresponding equal parts, and place an order when the price is reached
- price range: if the price exceeds the highest price in the set range or exceeds the lowest price in the set range, the system will not execute the order operation outside the grid range, then the strategy will be suspended. 5.
- Take profit, stop loss price: optional
3.2 Using the original BTC
There are 2 cases as follows.
The first case: no "Use original BTC" checkbox
When you place an order, the system will deduct one third of the USDT you put in to buy a certain amount of BTC, and then conduct a grid transaction. The remaining USDT will be divided by the number of grid cells, that is, the amount of each cell used.
Second case: check "Use original BTC"
In this case, the system will directly use your original BTC for grid trading. Your invested assets will be divided by the number of grid cells, i.e. the amount used per cell.
3.3 Do I need a stop-loss or take-profit price?
When the price goes up and exceeds the stop loss price, all assets are sold automatically. After the price falls to the stop loss threshold, the strategy will be stopped automatically, and the system will not sell the assets bought by the user automatically after stopping the strategy.
Stop gain price should be higher than the highest price in the range and stop loss price should be lower than the lowest price in the range.
The following picture is when you set the grid trading, the price range 100,000 ~ 120,000, divided into 6 cells. A total of 9 buy orders, 7 sell orders, and 2 sell orders due to the market price increase above the take profit line price. If the price continues to fall at buy point c2, the strategy will automatically stop when the stop loss line is exceeded, and the strategy will only be suspended if the stop loss line is not reached or the take profit line is not increased.