The Brief Introduction of Grid Trading 2.0 Version on Pionex!
After operating for more than 500 days, Pionex (incubated by BitUniverse) finally rolls out a new updated version of the already very popular Grid Trading Bot - Classic Grid Bot, Margin Grid, Leveraged Grid, Reverse Grid. It also comes with a good looking, clearly arranged brand new UI design, which is showing a lot of useful information and detailed data, in addition to an accurate and clear profit calculation.
Interested? Well, let’s move on to learn the details about the new “Grid Trading Bot 2.0”
The Brand New, Professional UI Design
As the Picture shows:
(1) Many different basic Bot Strategies can be found on the BOT HOUSE Tab, which easily lets you choose the right Bot for a big range of various market
(2) You can find all the Bots which you currently have running and access your Bot History on the MY BOTS Tab.
New Trading Bots in Grid Trading 2.0.
There are three new Variations of Grid Trading and also a few new optional Features which are included in the new Grid Trading Bot 2.0 version.
Before we dive into the details of the new Grid Trading Bot 2.0, we need to define a trading pair as base/quote. For example on BTC/USDT, BTC is base and USDT is quote.
Okay, so let me introduce you to the 3 new Grid Trading Variations, added by this update.
(1) Leveraged Grid Bot
The “Leveraged Grid Bot” is a new Variation of Grid Trading, which allows you to leverage your investment in order to magnify your profits.
If you think base will rise, then you can create Leveraged Grid Bot, then invest your quote with leverage. The Bot will then start earning quote for you, which can be understood as “Buy first, Sell later”. That’s basically how the “Classic Grid Bot” already is operating, but its doing that with leveraged investment (Your funds + borrowed funds).
Check the Leveraged Grid tutorial to know more details: https://medium.com/@mario_40812/new-trading-strategy-leveraged-grid-on-pionex-46bb117c7bbe
(2) Margin Grid Bot
The “Credit Grid Bot” is a new Variation of Grid Trading, which allows you to mortgage your base in order to to borrow quote, which finally will earn base for you. Or you can mortgage your quote to borrow base, which finally will earn quote for you once the price is rising again.
There are two choices — Loan base or Loan quote.
Loan base means the bot will lock your quote to loan base, and earn quote when base goes down.
Loan quote means the bot will lock your base to loan quote, and earn base when base goes up.
Check the Margin Grid tutorial to know more details:
https://medium.com/@mario_40812/new-trading-strategy-credit-grid-on-pionex-edb385702b96
(3) Reverse Grid Bot
The “Reverse Grid Bot” is designed to give Traders the ability to use Grid Trading for shorting. If you want to short some base, you can use this trading strategy. It can be understood as “Sell first, Buy later”.
Check the Reverse Grid tutorial to know more details:
https://medium.com/@mario_40812/new-trading-strategy-reverse-grid-on-pionex-68605955c1bd
The New Optional feature Intro in Grid Trading 2.0
(1) Stop loss / Take profit (Optional)
Stop loss is identical to the option you have in Grid Trading 1.0. Once the price dumps out of your price range and gets to the stop loss price you have set, it will sell all your base to prevent an even higher loss if it decreases even more.
Take profit(Named as Close Bot at) basically it is the same as stop loss, but in the other direction. If the price pumps and leaves your price range to the upper side, your bot will already have sold all your base. If you decided to put a take profit price above your upper limit before, it will close your bot once that price is reached. That prevents you from buying back in close to the top, once the price starts falling down into your range again.
Set a take profit price higher than upper price limit. It will be triggered when the price reaches the take profit price. At this time, your grid trading bot will be canceled automatically. It’s a great option to make sure you close your Bot at the top, just when it has realized all profit. A price dump afterwards won’t affect you then anymore.
(2) Arithmetic/Geometric — Grid Spacing Setting
The “Classic Grid Bot AI Strategy” is always using Arithmetic Grid Spacing. That means, if you are setting 11 Grids for a BTC/USDT price range of 10000–20000, the Limit Orders of your bot will be all be 1000 USDT apart. And common difference is 400 USDT for the arithmetic grid trading. From 10000 to 11000 that’s 10% profit, while from 19000 to 20000 it will only be 5.2%.
Geometric Grid Spacing on the other hand gives you the choice to instead always have the same Percentage of profit as space between the orders of your Bot. The common ratio for above example is calculated as (10000/8000)¹/4–1=7,07%. That means every limit order your Bot is setting up is 7.07% of profit away from the next order.
So in short:
Arithmetic Spacing will always make the same amount of currency (ex. USDT) as profit in each Grid.
Geometric Spacing will always make the same percentage of profit in each Grid.
(3) Trigger price(Optional)— Set Entry Price for Grid Bot
What if I don’t want to stare at the market the whole day to get a good entry for starting a Bot? Use the Trigger price optional feature!
You can choose a desired trigger price at least 2% higher or lower than current price and set the Parameters of your Bot as usual. The Bot won’t do anything until the price reaches your trigger price, which is when your Bot will be activated. Once activated it will start trading, according to your pre-set parameters.
If you have any questions, you 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
