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Must-read for first-time Strategy Traders

Must-read for first-time Strategy Traders

Beginner
2023-11-16 | 5m

A beginner's Strategy Trading guide

  1. Strategy creation

  • Minimum/Maximum Price: Determines the grid in which the strategy operates

  • Number of grids: Divides the price range into several grids, affecting the profit margin of a single grid

  1. Strategy operation

  • After the real-time price triggers a buy order to execute and place a sell order at the upper price

  • After the real-time price triggers a sell order to execute and place a sell order at the lower price

  1. Strategy termination

  • After the strategy is terminated, no more orders will be placed

  • Your assets will be automatically transferred from the strategy account to the spot account

Strategy Trading portal

Due to recent user feedback, we have compiled some strategies for beginners to reference. Be aware that the following instructions do not constitute any investment advice.

  1. Choosing a strategy type according to the market

  • When the market is volatile, or you are engaging in range trading, use the Spot/ Futures Trading strategies.

  • When you want to increase your investment at a specific price and expect the price to rise in the long term, use the DCA strategy.

  • When you want to increase your investment at certain intervals and expect the price to rise in the long term, use the auto-invest strategy.

  1. Choosing an order placing mode:

(1) AI strategy

The system will select the optimal strategy parameters according to the backtesting of historical data, and the user only needs to set the investment amount.

(2) Manual creation

Users can set parameters, such as highest price, lowest price, number of grids, and invested amount. Simply use Generate Strategy when you have set your parameters, and the system will automatically place orders and trade for you.

Note: AI strategy is great for beginners. The 7-day grid APR backtesting, single grid PnL and other data are all from backtesting historical data and do not represent your future profits.

  1. Choosing the right tokens

  • Mainstream tokens should be your first choice. They have higher trading volume and better liquidity, which makes it easier for you to seize opportunities to profit.

  • Tokens with high volatility. Choose tokens with relatively spread out fluctuations for grid trading.

Note: It is recommended that you choose mainstream tokens, such as BTC/USDT and ETH/USDT, if you are a beginner.As an experienced user, you can try to find high-volatility tokens for grid trading.

  1. Setting the grid price range

If you want to maximize profits, the key is increasing the profitability of each grid, so it becomes particularly important to set a reasonable price range.

For intraday traders, for example, the price range can be determined by the rules of “the highes t price in the range = the daily pressure level” and “the lowest price in the range = the daily support level”. Of course, this is a simple way to determine the price range. Feel free to find other strategies on your own.

Note: We recommend that you terminate the strategy yourself when you realize that the current price is deviating from the set price range. After that, you can restart the strategy after setting a new price range to ensure that your strategy can execute matching transactions and generate profits.

  1. Setting the grid density

The grid density defines the size of each grid. The higher the grid density, the lower the single grid profit will be; your transactions will be more frequent, and transaction fee higher. The lower the grid density, the higher the single grid profit will be; your transactions will be less frequent, and transaction fee lower. Thus, it’s important to set a reasonable grid density.

Note: We recommend a grid number greater than 20. All in all, set a reasonable number of grids, then you can improve the profits from the grid strategy.

  1. Strategy trading: what should I do?

Bitget provides a strategy trading feature that allows users to copy strategists with ease. Copying strategies saves you time and effort by automatically buying low and selling high on your behalf, 24 hours a day.

Note: If you are a beginner, we recommend that you subscribe to a strategy expert in the Strategy Square based on how their strategy PnL ranks, number of subscribers, and total subscriber profits.

  1. Tracking your Strategy Trading records

  • Go to My Strategies to view pending and running strategies.

  • Go to Historical Strategies to view past strategies.

  • Use Stop to stop any strategy operations (PnL will be realized at the current market price).

Note: We recommend that all users should set a stop-loss price to control risk. Users should stay informed of market trends in order to make proper adjustments to the grid.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users should conduct their own research and invest at their own discretion. Bitget shall not be liable for any investment losses.

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