Classic Grid (Spot) is a trading strategy that seeks profit from market fluctuations by positioning buy orders and sell orders.
The system will place buy orders when the price drops and sell orders when the price climbs over the base currency at set intervals around the set price to profit from the market trends.
Grid trading is not affected by human factors and exactly by programming. By grasping the market dynamics, grid trading will create orders at incrementally increasing and decreasing prices to make profits from the volatility. In doing so, individual investors will gain profits from the price gap on the market.
How to use Classic Grid？
The Classic Grid uses AI parameters by default, the trading bot will set the parameters for you on the basis of your historical data. You only need to set the trading pairs and devoted amount, and click “Create”, then you can start earning profits.
If you prefer your own strategy, just switch to “Customize Parameters” and specify your preferred parameters. The parameters are as follows:
Min. Price: The minimum price that you have set for buying in. If the market price drops below this price, the trading bot will stop buying in.
Max. Price: The maximum price that you have set for selling out. If the market price climbs higher than this price, the trading bot will stop selling out.
The “Min. Price” and the “Max. Price” composed the price range of the grid trading.
No. of Orders Placed: Total number of placed sell/buy orders. It is used to calculate the interval and positions in grid trading. Interval = (Max. Price - Min. Price)/No. of Orders Placed.
Suppose we’re going to trade BTC/USDT, if the Min. Price is 8,000 USDT, the Max. Price is 12,000 USDT, the No. of Orders Placed is 4, then the Interval is (12,000-8,000)/4=1,000. Then, the maker price will be 8,000USDT/9,000USDT/10,000USDT/11,000USDT/12,000USDT, 5 positions in total.
Total Investment: The amount that you intended to devote in grid trading. When grid trading is enabled, the system will automatically transfer the funds you intended to devote from your spot account to the Trading Bot account. After the trading, the funds in the Trading Bot account will be transferred back to the spot account. Transfer between accounts do not need trading fees. Please make sure that there are enough funds in your spot account for grid trading.
Stop Price (Advanced Settings): It indicates the minimum price that one is willing to sell the base currency. When the preset price of the base currency is lower than the Stop Price, the trading bot will automatically sell out the base currency to stop losses.
Entry Price (Advanced Settings): It indicates the price you intended to buy the base currency. By default, the trading bot will automatically buy in a certain amount of base currency at market price. You can designate the trading bot to buy in assets at the price you want by setting the “Entry Price”.
How to check the profits from Classic Grid Trading?
After you enable the trading bot, you can check the operation details in “In Operation” on the menu bar. The operating indicators are as follows:
Grid Profits = Price gap between grids * Buy-in amount of the grids * No. of the filled orders
Floating PNL = (Market price of the base currency - Avg. price of buying in) * Holding amount of the base currency
Total Profits = Realized profits + Floating PNL
APR = (Total profits/Total investment) / Days of operation * 365 days
*For BTC/USDT, BTC is the base currency and USDT is the quote currency.
Now you’ve learned much about grid trading, go start and try it now!