What's the Spot Grid bot and how do I use it?
A spot grid bot is a trading bot that you can customise and deploy to automatically place buy and sell orders at set intervals and within a specified price range. The aim of the spot grid bot is to systematically buy at lower prices and sell at higher prices within a specified price range. As with all bots, there's no guarantee that this aim will be achieved. The bot will only operate according to the parameters you set.
The term grid refers to the intervals between trading levels where these orders are placed.
How does the Spot Grid bot work and how do I set it up?
Learn how to set up your bot below:
A spot grid bot is designed to buy crypto at low prices and sell it at higher prices within a specified price range, aiming to generate incremental profits. When it's activated, it spends a portion of your allocated trading funds to buy crypto based on your set trading range and the current market price. The bot then places buy orders below the current price and sell orders above it at set intervals, known as grids, which together form your entire trading range.
When the crypto price reaches a buy or sell level, the trade is automatically executed. After this, the bot then places new buy orders below the current price and sell orders above it once again. This setup allows the bot to continuously buy low and sell high.
Grid trading doesn't guarantee profits and has limitations, amongst others: in a strongly trending market, buy or sell orders may remain unfilled, or in a downtrend, filled buy orders may lead to losses. The grid bot may lack flexibility should market conditions suddenly change, and have higher than expected trading costs due to the number of orders being executed, particularly in volatile markets.
What are the Spot Grid bot trading parameters?
You can create a spot grid bot by setting the following key parameters:
Lower price: the lowest price level at which the bot will operate. The bot will stop placing orders if the market price falls below this level.
Upper price: the highest price level at which the bot will operate. The bot will stop placing orders if the market price exceeds this level.
Grid quantity: this refers to the number of price levels (grids) that your selected price range is divided into. The bot will place buy and sell orders at each level. You can choose between arithmetic (evenly spaced grids) or geometric (proportionally spaced grids) distribution. Having more grids means the bot will execute smaller trades more frequently. Fewer grids result in larger trades but less frequent execution. For example, if the price range is 100-400, and you set the grid quantity to 3 with arithmetic mode, it would create three grids: 100-200, 200-300, and 300-400.
Grid mode:
Arithmetic: maintains a consistent difference between each grid level (e.g., 1, 2, 3, 4).
Geometric: maintains a consistent ratio between each grid level (e.g., 1, 2, 4, 8).
Investment amount: this is the total amount of the selected currency the bot will use to place buy and sell orders across the grids. The maximum amount is usually the available balance in your trading account for the selected currency.
Other optional parameters:
Trailing up/down: this option allows the bot to automatically adjust the grid as the price moves, improving flexibility and maximizing capital utilization by adapting to market fluctuations.
Take profit (TP) price: an optional price target. If the price reaches this level, the bot will stop trading and sell all base assets at the market price.
Stop loss (SL) price: another optional setting aiming to limit losses. If the price drops to this level, the bot will stop trading and sell all base assets at the market price.
How do I manage my Spot Grid bots?
From the trading bot dashboard, you can monitor and manage your spot grid bot:
Modify parameters: adjust the bot's price range and grid quantity even after it’s active, allowing flexibility in response to market changes.
Withdraw profits: transfer grid profits earned by the bot directly to your trading account.
Stop your bot: when you stop the bot, all pending orders are cancelled. You can choose to either sell the crypto at the market price or keep it. In both cases, the funds or crypto are transferred to your trading account.
View details: check the bot details page for real-time performance insights and statistics. On this page, you can view the filled orders, which indicate the total number of completed orders, and the matched trades, which represent completed transactions where a buy order and a sell order were executed at a higher price level.
Replicate setup: recreate a bot with the same parameters.
If you have any queries regarding our Spot DCA (Martingale) bot, visit here.