Trailing grid: grid intervals move along with price
Bitget
2023-11-20 08:39
1. What is trailing grid?
Trailing grid is one of latest advanced features on Bitget. When enabled, the upper and lower limits of the grid range will automatically move up as the average price increases, effectively helping users take better advantage of opportunities during uptrends.
For example, in the case above, the user has configured the trailing grid feature to be triggered when there is a 5% increase in the moving average price. Once the moving average price rises by 5%, the trailing grid will automatically adjust the upper and lower limits of the range, shifting them upward to the blue highlighted range.
By not enabling the trailing grid, you risk missing out on potential gains when the price surpasses the previous upper limit. However, with the trailing grid feature enabled, the grid range adjusts upward as the price increases, presenting you with arbitrage opportunities and enabling you to capitalize on favorable market conditions, thereby maximizing your profits.
2. How to enable trailing grid?
When creating a grid bot, switch the trailing grid on, and enter the moving average gain percentage.
If you want the grid to stop moving after it has moved to a specified position, simply check the Stop upward price movement option and enter the target price. In doing so, the maximum price of the interval on the grid will not move from the specified position.
3. When does the grid move?
The upward movement of the trailing grid is determined by an increase in the moving average price. Moving average gains refers to the increase from the most recent moving average price compared to its price at the time of creation or during the last grid movement.
When setting up the trailing grid, users need to set a moving average gain trigger which will make the grid move upwards once the moving average gain reaches that trigger number.
The trailing grid is based on a 720-minute moving average. Backtesting has shown that this particular time frame effectively filters out significant sudden pull-ups and pull-backs, while also enabling a relatively precise identification of uptrends.
And what is a 720-minute moving average? The 720-minute moving average is calculated as the average value of the closing prices from the previous 720 1-minute candlesticks. On the Bitget 1-minute candlestick chart, you can easily find and select the moving average indicator.
Set the length of the MA to 720 and you will see the 720-minute moving average.
For App users, access the Chart settings from the candlestick page, then long-press and tap on MA to adjust the length.
4. Why use moving averages?
An upward movement of the grid range usually represents a good opportunity to buy. But if you buy during a sudden pump, you are likely end up trapped at that high price level. Moving averages help smooth out price fluctuations to help avoid buying at high levels.
For example, if the grid movement is triggered based on a 5% price increase, the grid bot will adjust the range due to this sudden price pump, causing the bot to buy at a high price, as indicated by the red circle in the chart. However, by using the moving average gain metric, this grid movement may not be triggered at all, thus avoiding losses due to price falls.
5. How do I stop the trailing grid from moving?
You can set a price to stop upward movement when you enable the grid. In t doing so, the maximum price of the interval on the grid will not move from the specified position. When the upper range of the grid moves below your price to stop the upward movement, the grid will stop moving, but the bot will still continue to run.
6. Risks involved in trailing grid:
The trailing grid moves upward as the market rises, but does not adjust downward when the market declines. As a result, there is a risk of the price falling below the lower limit of the grid during dips.
The trailing grid will stop moving if funds are insufficient. After adding funds, the system will be able to detect them within 5 minutes, and with sufficient funds, the movement will resume.
In the case of significant deviation between the marked price and the market price in a futures trailing grid, it is possible that some grid levels might be skipped due to short positions.
Disclaimer
Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users should conduct their own research and invest at their own discretion. Bitget shall not be liable for any investment losses.
Join Bitget, the World's Largest Crypto Copy Trading Platform