Master Grid Trading Live With Bitget
Grid trading is a trading strategy that helps users automatically buy low and sell high based on a set grid interval within a set price range. It usually works best when the market is volatile and prices fluctuate within a specific range. In this way, it can make a profit out of small price movements. That’s it.
The advantages of Bitget grid trading
There are many different advantages, the first is
-
Diverse strategies: Bitget currently supports spot grid, futures grid, spot DCA, futures DCA, and auto-invest strategy. More strategies will be listed in the future to offer you a wide range of choices. To be clear, today’s topic will mainly cover classic strategies. Other strategy tools and their scenarios will be discussed in other upcoming episodes.
-
Highly automated: Strategy trading helps you buy low and sell high automatically 24/7. Whether you are sleeping, at work, or on vacation, it never stops.
-
Easy-to-use and customizable: You can start strategy trading the minute you sign up for an account. What's more, you can set your own parameters without the need to understand or calculate complex indicators and metrics as required in manual trading.
-
Low threshold: Strategy trading can help you seize trading opportunities that are hard discover when trading manually. You can place buy orders to take advantage of the best possible timing, without the need to constantly monitor price movements. Strategy trading can also automatically place orders to take profit or move upward along the grid when the market goes up.
-
Take emotions out of the equation: Grid trading is more like a program in the sense that it does not rely on how people think and feel about the market. It is a necessary tool if you want to trade in a calm, cool and collected manner.
The best part about grid trading is that it can automatically execute the trade for you, even if you are unavailable for whatever reason. Not to mention, these grid tools are super easy to use. In this way, Grid trading can help you trade more efficiently and generate profits while reducing costs, screen time and stress. That’s all the advantages from grid trading
What are the Target users:
-
People who are busy and have no time to monitor the market;
-
Beginners who have not established their own trading methodology and are afraid of making mistakes.
-
Investors who pursue low risks and steady profits;
How to use grid trading
Step 1: Set a price range
To get started, you need to set the Highest Price and Lowest Price. Within the range, the system will automatically place Buy Orders and Sell Orders based on the grid settings and wait for the transaction to be triggered as the price fluctuates. When using futures grid, don’t forget to choose your leverage, which can be set up to 125X.
Step 2: Set the number of grids and quantity per grid
The price range will be divided into several grids based on the number of grids you set, which will directly impact your profit per grid. (Minimum profit per grid should be greater than 2 times the transaction fee)
Step 3: Set the take-profit and stop-loss price or a percentage (this is optional)
By setting a take-profit price, the order will be triggered and automatically ended in order to take profit once the coin's price reaches the take-profit threshold. By setting a stop-loss price, the order will be triggered and sold entirely to stop incurring losses once the coin's price reaches the stop-loss threshold. Back to you CH
Notes: Dont need to mention this:
Beginners are advised to use the parameters recommended by Bitget AI Strategy. This feature automatically calculates the grid parameters (Highest Price, Lowest Price, and number of grids) with the highest ROI based on back-testing of the last 7 days of historical data. You simply need to fill in the investment amount to create a grid trading strategy, which is very user-friendly for novice investors.
You can also use strategy trading to instantly copy the strategy and parameters of top traders on the strategist rankings, so that now a wealth of strategies are at your fingertips.
Upcoming features: In the future, Bitget will add more AI strategies. You can choose from the AI strategies provided by our platform or others published by elite strategists. With strategy trading, you no longer need to set all sorts of complicated parameters.
Terms you need to know about grid trading
CH: I have gathered some important terms that are essential for people who want to try grid trading. Knowing these terms is crucial for understanding the concept. Here, I'll give you a quick overview of a few of them and direct you to find more information.
-
Highest Price: The highest selling price which you do not expect to be exceeded in the near future. This value is determined using either historical data or the upper boundary of the Bollinger Bands (BOLL). A Sell Order will not be placed if the market price exceeds the Highest Price.
-
Lowest Price: The lowest buying price which you do not expect to be exceeded in the near future. This value is determined using either historical data or the lower boundary of the Bollinger Bands (BOLL). A Buy Order will not be placed if the market price falls below the Lowest Price.
-
Mid Price: The median value of the Highest Price and Lowest Price, which can be interpreted as the price around which you think the market will fluctuate during that period.
-
Arithmetic Mode: In this mode, each grid has an equal price difference, making it suitable for coins with relatively small price fluctuations.
-
Geometric Mode: In this mode, each grid has an equal price difference ratio, making it suitable for coins with relatively greater price fluctuations.
-
Number of Grids: The total number of grids set to execute the strategy. This normally ranges from 2 and 200 grids. The number of grids used can affect your trading frequency. Using too many grids can result in an undesirably high trading frequency, while using too few grids may cause orders to remain unfilled for long periods of time.
-
Profit per Grid: Within the same price range, the higher the number of grids, the lower the profit per grid.
-
Price Difference of a Single Grid: The amount that can be traded per grid, which is calculated by dividing the Invested Amount by the Number of Grids.
-
Grid Density: The size of each grid. The greater the number of grids, the higher the grid density, which means it will be able to capture smaller price movements, resulting in a higher trading frequency, lower profit per grid and higher transaction fees. On the contrary, the smaller the number of grids, the lower the trading frequency, which leads to higher profit per grid and lower transaction fees.
-
Invested Amount: The total amount invested in grid trading. If you are unsatisfied with your profits, you can increase the principal for each grid or reduce the number of grids. In doing so, the grid interval will be expanded and the profit per grid will be increased.
-
Stop-Loss Price (optional): When the last price is lower than or equal to the stop-loss price, the stop-loss order will be triggered to stop buying in. (In this case, the price must be lower than the Lowest Price)
-
Take-Profit Price (optional): When the last price is higher than or equal to the take-profit price, the take-profit order will be triggered to sell out. (In this case, the price must be higher than the Highest Price)
For more information, you may refer to the Grid Trading Glossary via Product News -> Strategy Trading -> Advanced Learning.
What are the risks of grid trading
-
You can't take profit if the grid order goes beyond the price range: If the price does not fall somewhere between the Highest Price and the Lowest Price, the transaction will be suspended, meaning no profit will be made. When the market continues to move upward, users will be unable to make profits because all the positions may have been sold out. Likewise, if the market continues to move downward, users may suffer significant floating losses.
-
If the price of the invested coin goes all the way up after grid trading is enabled, the profit can be lower than simply holding it in a spot account. Since grid trading orders will be partially sold out when the price moves up to a higher level along the grid, you can of course make a profit. However, compared to spot traders entering the market at the same time, your profit may be relatively small.
-
The market price does not fall within the set range: If the market price does not enter your set price range for a long period, it may result in the inefficient use of your invested funds.
-
The trading strategy cannot be adjusted: Once grid trading is enabled, you will not be able to adjust the price range. That means even if you watch the market trend increasingly deviate from the price range you have set, there is no way you can change your trading strategy once the order is enabled. The only thing you can do is terminate the original grid order and open a new one.
Tips for grid trading
Oscar: As the Bitget ambassador, I've got the juiciest highlights from our livestream today. Pay close attention, folks, because I'm about to share the most crucial insights for becoming a successful grid trader.
When is the right time to enable grid trading
In reality, this is quite simple. Always enter the market when the price is low. But how can you tell whether the price has hit its lowest point? Try making your entry after a big fall. Remember, never invest more when the price goes up or sell out when the price drops down. By following this tip, you should be able to make a profit or at least stem your losses.
How to check the price changes of a coin
You can look at the change percentage displayed on the K-line. Monitoring the K-line trend for the past seven days should be enough to tell the recent price change percentage of a particular coin. Remember, grid trading works best for coins with higher volatility.
How to choose the right coins
-
Mainstream coins should be your first choice. They have a higher trading volume and better liquidity, which makes it easier for you to seize opportunities to profit.
-
Coins with high volatility are also a good option. Choose coins with relatively spread out fluctuations for grid trading.
Note: If you are a beginner, it is recommended to choose mainstream coins, such as BTC/USDT and ETH/USDT. As an experienced user, you can try to find high-volatility coins for grid trading.
How to set the number of grids
For mainstream coins, you can set the number between 30 - 70. Grid profit = price difference of a single grid × purchase amount of a single grid × number of filled Sell Orders. If the price range is too large, it will reduce the trading frequency. Therefore setting the right number of grids and price range can be an art, which needs to be explored in practice.
How to set the grid price range
If you want to maximize profits, the key is increasing the profitability of each grid, so it becomes particularly important to set a reasonable price range.
For intraday traders, for example, the price range can be determined by the rules of "the highest price in the range = the daily pressure level" and "the lowest price in the range = the daily support level". Of course, this is a simplistic way to determine the price range. Feel free to find other strategies on your own.
Note: We recommend that you terminate the strategy yourself when you realize that the current price is deviating from the set price range. After that, you can restart the strategy after setting a new price range to ensure that your strategy can execute matching transactions and generate profits.
What if I run a grid trading strategy for three days and see little returns? Should I give up?
Be patient and let time do its job. It is quite normal to see only tiny gains if you just run the strategy for three to five days. Give it a month and see how your strategy turns out. You can also communicate with other users to see if you can increase your profits by adjusting certain parameters.
No data