What is grid trading?
Grid trading is a trading strategy of selling high and buying low within a set price range to make profits in a volatile market, especially in the cryptocurrency market. The trading bot in grid trading will precisely executes the buying and selling orders within a certain price range set by the traders and save the traders from making unproper investment decisions, missing market information or worrying about the whole-day fluctuations.
(1) The program is completely rational with absolutely no panic trading occurring.
(2) Orders will be placed automatically once the grid is set and save the traders from keeping an eye on the chart all time.
(3) The trading bot works 24 hours a day without missing any market information.
(4) User friendly and easy to get hands-on without the need to predict the market trending.
(5) Making a stable profit in an oscillating market.
How to use LBank grid trading strategy?
1、Log in LBank homepage, and click on "Trading"-"Grid Trading".
2.Choose the trading pair for grid trading (taking BTC/USDT as an example).
- Then set your gird trading parameters (Manual) or choose to use the AI strategy (Auto).
4、Create a grid strategy of your own
(1) Click Create Grid
(2) in the "set strategy" - fill in the "interval lowest price - interval highest price" - set the "grid number" - choose " Arithmetic" or "Geometric"
(3) Then, the "single grid ROE" will be displayed automatically (if the Single grid ROE shows a negative number, you can modify your interval or grid number to make the single grid ROE reach a positive number)
The interval highest price: the upper boundary of the price range, when the price exceeds the interval highest price, the system will no longer operate (the interval highest price shall be higher than the interval lowest price).
The interval lowest price: the lower boundary of the price range, when the price is lower than the interval lowest price, the system will no longer perform (the interval lowest price shall be lower than the interval highest price).
Price range: a configured price range that the grid trading runs.
Grid number: The number of orders to be placed within the configured price range.
Invested assets: the amount of crypto assets that the user will invest in the grid strategy.
(4) In the "invested assets" - fill in the amount of BTC and USDT that you want to invest in (the amount of BTC and USDT automatically displayed here is the minimum capital investment amount required.)
(5) Advanced strategy (Optional) - "Trigger price" (Optional): The grid orders will be triggered when Last Price / Mark price rises above or falls below the trigger price you enter.
(6) Advanced strategy - "stop loss price" and "sell limit price" (Optional) when the price is triggered, grid trading will stop immediately.
(7) After the above steps, you may click "Create Grid"
(8) All the strategies will be displayed under the "current strategy", and you may also click on "View Details" to see more details.
(9) In "View Details" there are two specific sections,"strategy details" and "strategy commissions".
Single profit (%): after the user sets the parameters, the revenue that each grid will generate is calculated by backtesting the historical data.
7-day annualized backtest yield: the expected annualized yield according to the parameters set by the user. It is calculated by using historical 7-day K-line data and the set parameters with this formula —— "historical 7-day yield/7*365".
Arithmetic grid: when creating a grid strategy, each grid width is the same.
Geometric grid: when creating a grid strategy, each grid width is equally proportional.
Sell limit price: the price when the market price comes to or higher than, the grid trading system will automatically stop and sell the order and transfer the crypto to the spot wallet. (The sell limit price shall be higher than the highest boundary of the price range).
Stop Loss Price: When the price drops to or lower than the stop loss price, the system will immediately stop and sell the coin and transfer the crypto to the spot wallet. (The stop loss price shall be lower than the lowest boundary of the price range).
Grid Profit: the total amount of profit made through a single grid
Floating Profit: the difference between the total amount of invested assets and the total amount of currently held assets.
total return: grid profit + floating profit
5、Use LBNAK's recommended grid (Auto)
(1) Select the grid trading pair you want to open, the recommended strategy will automatically use LBANK's AI strategy to choose the best strategy for the user. No need to add parameters manually.
(2) In the "invested assets" - fill in "BTC + USDT to be invested" (the amount of BTC and USDT automatically displayed here is the minimum assets amount required)
(3)Advanced strategy (Optional) - "Trigger price" (Optional): The grid orders will be triggered when Last Price / Mark price rises above or falls below the trigger price you enter.
(4) Advanced strategy - "stop loss price" and "sell limit price" (Optional) when the price is triggered, grid trading will stop immediately.
(5) After the above steps, you may click "Create Grid"
Risk Warning: Grid trading as a strategic trading tool should not be regarded as financial or investment advice from LBank. Grid trading is used at your discretion and at your own risk. LBank will not be liable to you for any loss that might arise from your use of the feature. It is recommended that users should read and fully understand the Grid Trading Tutorial and make risk control and rational trading within your financial ability.