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Introduction to Bitget Spot Grid Trading
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Since the very beginning, Bitget has decided to apply a phased rollout to deliver refined products only. For contract trading, users can deliberately choose from Bitget USDT-Ⓜ Futures, Bitget Coin-Ⓜ Futures and Bitget Copy Trade. Today we are excited to announce that our Spot Traders are finally equipped with the sophisticated tool of Bitget Spot Grid Trading. Stay tuned, this pocket guide will come in handy in volatile markets.

Spot Grid Trading Crash Course

It is important that you understand how powerful Bitget Spot Grid Trading is before diving in. In this section, you will learn everything about Grid Trading in general.

1. What is Grid Trading?

Grid trading is a type of quantitative trading strategy designed to buy low and sell high in a range-bound market. Grid Trading profits from the ups and downs of the market. You set a Price Range for the bot, adjust how many grids you want and as long as the price stays within your set range, the bot will always sell a portion when the price goes a bit up and buy a portion when it goes a bit down based on your setup.

Hence, Grid Trading is basically a bot that helps traders place strategic orders and create a so-called “price grid”. A price grid must be defined by a set of parameters, including:

- The upper limit price: the highest price expected

- The lower limit price: the lowest price expected

- Number of grids: the maximum number of buy/sell orders assigned to the grid

- Grid spacing: the price difference (arithmetic mode) or the percentage difference (geometric mode) between orders, and

- Trigger/stop loss/take profit levels for the advanced settings.

This trading method has been well-established and well-tested in various markets, especially the foreign exchange markets (forex). Bitget Team has developed the automated system and successfully integrated it into the platform so that our users can capitalise on the volatility of crypto assets as well.

2. How does it work?

The original idea behind the Grid Trading Strategy is to buy low and sell high. It works best when the asset is trading sideways - the bot will constantly pair buy orders and sell orders within a trader’s preferred price range.

Look at the price grid above. Suppose a trader sets a lowest price and a highest price based on his/her personal preferences. Starting at the current price level, the bot will place the first buy order when price falls to the red line below the purple line. The price continues to decline but is still higher than the set lowest price; other buy orders are placed consecutively afterwards. As we can see, now the price has fallen below the lowest price - the bot no longer executes buy orders. When the price recovers, sell orders are automatically completed based on the grid spacing.

These constant buy-and-sell orders rely on the assumption that the asset is oscillating sideways. Otherwise the trader could end up accumulating losing positions and experience heavy losses. Beginners should stick with major trading pairs such as BTCUSDT or ETHUSDT until they are used to the space and want to adjust their risk appetite accordingly.

3. Why Grid Trading?

Grid Trading is profitable if markets are bumpy, meaning traders do not need to constantly sit in front of the screen and predict the next price trend. It substantially takes advantage of the market’s natural movements in quieter times.

Besides, consider the amount of work associated with this strategy. The bot will do its job automatically after receiving the input data; of course you are recommended to routinely monitor the results and pay attention to market news, but in general it is simply trading without pain. One thing to keep in mind is Grid Trading involves the execution of many orders, therefore traders should monitor and adjust the number of trades to manage their trading fees wisely.

How to trade Spot Grid on Bitget

We understand that our users want to combine different trading techniques to maximise profits. That’s why we focused on perfecting Bitget Spot Grid Trading.

1. Start your crypto journey with Bitget

Bitget has advanced to the top 30 crypto exchanges globally within one year after launch and constantly maintained a monthly growth rate of 67%. Since January 2022, Bitget has claimed the 2nd place on the list of best exchanges globally by daily average futures trading volume. Bitget Coin-Ⓜ Futures has also reached an all-time high volume of $8.1 billion, maintaining the exponential growth rate on a global scale. The focus on improving customer experience has resulted in Bitget’s huge customer base of 2 million+ users from 48 countries worldwide.

Bitget is extremely customer-oriented. All product designs are based on users’ needs, practicality and convenience. It is important for us to break down the entry barriers to crypto trading and to increase the crypto mass adoption rate.

2. Our promises

Bitget is one of the most secured crypto trading platforms with the A+ ranking for 12 SSL indicators. We have also obtained operational licences from three different jurisdictions, the U.S., Canada and Australia. Bitget Team also works closely with local authorities worldwide to ensure a seamless operation on a global scale.

Users are supported 24/7. We are proud to have a global customer service team who will dedicatedly assist you at any time, with any questions you may have, no matter where you are. Most importantly, we listen to your feedback and never stop improving our products to give you the best crypto trading experience.

3. How to map out your Grid Trading strategy

Basic vs. Advanced settings

Basic settings are required to create a grid trade. The parameters are:

- The price range: upper price and lower price

- The number of grids: the price range divided by the difference between orders

- The available amount: the current balance of your spot account.

Advanced settings include setting the following price levels:

- Trigger price: the grid trade will be initiated when the last market price reaches the trigger price;

- Take profit: grid operation stops when the last market price reaches the take profit level;

- Stop loss: grid operation stops when the last market price reaches the stop loss level;

- Opening price limit: limiting the difference between the expected price and the actual price of an order, i.e. slippage limit.

Step-by-step instructions

Bitget users can make a spot grid trade directly from the Bitget Official Website or Bitget Mobile App (available on both iOS and Android) as follows:

Step 1: Choose Strategy Trading and click on Spot Grid to begin.

You can also visit the Spot Grid Trading Page directly to proceed.

Step 2: Select a trading pair and set the parameters.

Keep in mind that the bot cannot be initiated without you providing your personal trading preferences.

If you choose AI Strategy (Automatic Mode), Bitget will produce recommendations for the parameters using the analysis of your last 7-day trading data. You’re required to enter the investment amount allocated for this grid trade.

Manual creation (Manual Mode) is for more experienced traders. The basic settings are compulsory, but Advanced settings are recommended for better risk management and improved grid performance.

When you click on Advanced settings, it will show additional parameters like this:

Don’t forget to check the box right above the blue button to let the bot sell this particular asset when grid operation is terminated. Then click Create an order. Your spot grid is created!

Step 3: Monitor your spot grid trades by:

- Clicking on Running to check the pending and ongoing grid trades;

- Clicking on History to check the previous grid trades;

- Clicking on End to terminate grid operation (profits/losses are realised at the current market price).

Note: All users are advised to set a stop-loss price level to limit the potential risks.

Example

Take the following parameters for the BTCUST pair:

- Upper price (in USDT): 60,000

- Lower price (in USDT): 40,000

- Number of grids: 5 (Arithmetic)

- Invested amount (in USDT): 10,000

- Current BTC price (in USDT): 50,000

The price range is 60,000 - 40,000 = 20,000. There are 5 orders (Arithmetic) in total, therefore the price difference between orders is equivalent to 20,000/5 = 4,000. The five price levels to be considered are 60,000 - 56,000 - 52,000 - 48,000 - 44,000 - 40,000 respectively.

Bitget Spot Grid Trading uses normal grids, i.e. orders are executed from the top to the bottom grids: The grid begins with a buy order at 56,000 as the upper price is 60,000. Current market price is 50,000, hence this buy order is filled and creates a sell order at 60,000. Similarly, at 52,000 a buy order is filled and creates a sell order at 56,000. When the buy order at 52,000 is filled, a sell order of 56,000 will be placed. At the current price of 50,000, the buy order at 48,000 cannot be filled, therefore no orders will be placed at 52,000. Similarly, the buy orders at 44,000 and 40,000 will not be filled.

Risk control

Users are advised to follow market trends and news to adjust the grids accordingly. Trading crypto assets entails high risks and requires a comprehensive approach to risk management.

Please note that Bitget Spot Grid Trading is by no means implying Bitget’s financial advice. Grid trading is used at your discretion and at your own risk. Bitget will not be liable for any loss that might arise from your use of this feature. Users are advised to make rational decisions by thoroughly assessing their own risk tolerance after reading through the grid trading guideline.

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