Grid trading bot is one of the most popular trading strategies on Pionex exchange, because Trading Bot helps users make about ten million USD profits in 2019.
Here are some following information provided for you to deep understand Grid Trading Bot well!
INTRO OF THE BOT
1. When is the best situation to create a Grid Trading Bot?
Grid Trading Bot is the best choice in swinging market. When the price keeps fluctuated in the same range, that’s the moment to create a Grid Trading Bot.
2. How does Grid Trading Bot make the profit?
Because Grid Trading Bot has the good performance in swinging market, so Grid trading bot will make good profit from the fluctuation.
Total profit= Grid profit(realized profit) + Unrealized profit.
Grid profit is made from grid fluctuation, and the unrealized profits is from the up or down of the price itself.
3. Does Grid Trading Bot fit all the market condition?
Grid Trading Bot is the best choice in swinging market, not all market condition like the price keep tanking or pumping.
4. What will happen when the price across the range of the bot?
BTC/USDT as example:
- If the price break through the top price limit of the bot, all BTC will be sold and you’ll stake USDT. The bot will remain at the same range and waiting for the price drop back to the range.
- If the price drop through the lowest price limit of the bot, all of the buy orders for BTC will be fully executed. The bot will remain at the same range and waiting for the price rise back to the range.
SET-UP OF THE BOT
1. What’s the meaning for each parameter?
- High Price: Highest sell price. The upper range of your bot.
- Low Price: Lowest buy price. The lower range of your bot.
- Stop-Loss Price(Optional): This parameter is optional. The price that bot will stop loss and cancel the bot.
- Grid quantity: There’s a limitation in the number of grid, you can’t set it below 2 and above 99.
- Quantity per Grid: The amount for each order in the bot.
2. Which pair and what range should I choose for the bot?
Honestly speaking , there’s no formula for the best pair and range, which depends on your trading experience.
In General, we’ll recommend you to tune the profit per grid between 0.5~2%, and choose a pair with good liquidity and make the range wider. Grid trading bot is for long-term strategy.
For example- BTC/USDT Grid Trading bot:
The highest price is 11,162USDT
The lowest price is 8,193USDT
The grid quantity is 54
then I change the Quantity per grid as 0.0009BTC then the bot calculated the Required balance and Profit per grid out.
If you have enough balance in you account, then you can tap the “CREATE” button. Then the bot is working!
3. How does the number of grid affect my profit?
- When you have more grids in a limited range, you’ll have higher possibility to executed your orders but less profit per grid.
- When you have less grids in a limited range, you’ll have lower possibility to executed your orders but more profit per grid.
4. What will happen after I cancel the bot?
After you decide to cancel the bot, it’ll cancel all the grid orders and stop running immediately. Your funds will remain with the same allocation at the moment it stop running.
TRANSACTIONS AND ROI ANALYSIS
1. How can I check my status of the bot?
You can check your bot status by clicking the TRANSACTIONS button.
2. What’s the definition for each profit in the report?
- Total Invest is the total value at the moment you created the bot.
- Grid Profit: The profit made by the bot from each buy and sell orders (Fluctuation arbitrage).
- Unrealized Profit: your total holding asset compare to the moment you created the bot.
Unrealized Profit = (Current Price — Average Buy Price) * Amount of BTC - Total Profit = Grid Profit + Unrealized Profit.
- Annualized Return = Realized Profit / Total investment / Grid lasting time(normalized into days) * 365 * 100%
The video about how Grid Trading bot works:
The tutorial for Grid Trading bot:
You also can join our telegram group to take the further assistance.
👉 Join Pionex: https://www.pionex.com/en-US/sign👉 Pionex Official Telegram Group: https://t.me/pionexen
