Spot Grid parameters explained

In spot grid trading, your parameter settings will directly affect your profit. Understanding the key terms related to the spot grid and the meaning of each parameter will help users to earn greater profit.

Spot grid glossary

1. Spot grid: an automated strategy to buy low and sell high in a specific price range. If the price keeps fluctuating within this range, the strategy will allow users to optimize their arbitrage opportunities. Ideal for oscillating markets, Bitget now supports both normal and reverse grids.

2. Normal grid: best for oscillating markets, automatically buying low and selling high.

3. Reverse grid: best for oscillating markets, automatically selling high and buying low.

4. AI strategy: using the grid strategy parameters recommended by the system. Recommended parameters are generated by calculating the most suitable parameters for the current market based on a smart algorithm combined with backtesting of the past 7-day market data.

5. Manual creation: users set their parameters and trigger conditions based on their judgment of the oscillating range.

Order parameters

1. Highest price: the upper limit of the price range for grid trading. No orders will be placed when the market price exceeds the highest price.

2. Lowest price: the lower limit of the price range for grid trading. No orders will be placed when the market price is lower than the lowest price.

3. Price range: formed by the pre-determined highest and lowest price. The strategy bot will buy low and sell high as the price fluctuates within the scope.

4. Number of grids: also called ‘grid number’, where the price range is equally divided into corresponding portions for the strategy to place orders accordingly.

5. Trigger price: grid trading will be enabled when the market price reaches the set price.

6. Take-profit/Stop-loss price: the strategy will be terminated when the market price reaches the set price.

7. Opening position limit order: setting parameters to control the range between the initial entry price and the order price within a certain proportion (due to the high volatility of the market, the final transaction price may be different from the order price. This way you’ll be able to control the slippage.

8. Arithmetic mode: each grid has an equal price difference (for example, 1, 2, 3, 4).

9. Geometric mode: each grid has an equal price difference ratio (for example, 1, 2, 4, 8).

10. Profit per grid: price difference of a single grid *min (the amount bought and the amount sold in a single grid interval).

11. Grid profit: the total profit of each grid within the grid range.

12. Available funds: funds available in the account for futures grid trading.

13. Investment: funds invested when the grid trading strategy started.

14. Sell at termination: when the forward spot grid is terminated, the coins bought by the strategy will be sold for stablecoins.

15. Buy at termination: when the reverse spot grid is terminated, the stablecoins sold by the strategy will be used to buy coins.

PnL parameters

1. Total profit: profit since the grid strategy started running. Total profit = grid profit + accrued PnL

2. Grid profit: total realized PnL generated by all grid trading orders deducting the transaction fees.

3. Accrued PnL: PnL resulting from the rise or fall of the base currency of the current trading pair (the price change of the last price of the base currency relative to the average entry price). Accrued PnL = (current price - average entry price) x current position

4. APY = total profit ÷ initial margin ÷ days running x 365

Disclaimer

Spot grid is a transaction tool. The above-mentioned information should not be considered as financial or investment advice from Bitget. Profits from spot grid trading may be impacted by one-sided market conditions or improper price intervals. You can adjust your spot grid trading strategy according to market conditions. Your use of this tool is subject to your unconditional acceptance of all of Bitget's terms and conditions. You should be fully aware of the risks associated with cryptocurrency investments and proceed with caution. You agree that all investments on Bitget.com reflect your true investment intent, and you unconditionally accept the potential risks and gains of your investment decisions.