Crash course on position grids
1. What are position grids?
Position grids automatically buy low and sell high within a specific wide price range, with price levels determined by the system. Simply put, position grids use Bitget's grid trading bot technology to intelligently recommend parameters based on current asset prices. As long as the coin price oscillates within the position grid's price range, the bot will profit from the grid on a 24/7 basis. You may also withdraw the position grid's profits to make flexible use of your assets.
2. Position grid features
Position grids are suited for range-bound fluctuating markets and fluctuating bull markets but may lead to losses in fluctuating bear markets. Position grids allow for a larger price range than traditional grids and have no TP/SL. They ideal for mid-/long-term investment. At present, Bitget supports the use of forward/reverse spot and futures position grids in geometric/arithmetic mode. Position grids are designed to address the needs of users in all trading scenarios and help them stay one step ahead in the market.
3. What are the benefits of position grids?
• Invest in quality assets: If you're looking to run a grid bot with USDT or are unsure which trading pairs to use, position grids are your answer.
• No more emotional entries: Grid bots automatically buy low and sell high without human intervention, taking emotions out of the equation and ensuring that you don't blindly chase profit without proper research.
• No need to monitor market trends: Position grids run 24 hours a day, 7 days a week, selling high and buying low to secure your profit at all times.
• Extended investment cycle: Position grids support the withdrawal of profits, meaning that you can take profit to meet urgent liquidity needs without suffering any losses.
• Lower barrier to entry: As position grids have a longer investment cycle, you can time your entries flexibly. The bot will secure your profits when prices rise and lower your position costs when prices drop.
• Low investment risks: As position grids buy low and sell high in the spot market, you'll never have to worry about losing your principal.
The key advantage of position grids is the continuous arbitrage of fluctuations in the market. Position grids also earn you profit when prices rise, making them suitable for all kinds of traders.
4. Position grid parameters explained
• Total profit = grid profit + unrealized PnL.
• Grid profit = arbitrage profits earned by the bot buying low and selling high during market fluctuations.
• Unrealized PnL = (current asset price – position entry cost) × amount held by the bot.
• Grid APR = ((grid profit ÷ investment) ÷ (running time ÷ 365)) × 100%.
• Total APR = ((total profit ÷ investment) ÷ (running time ÷ 365)) × 100%.
5. Position grid FAQ
Q: What happens when the bot takes on losses?
A: When you start running a position grid bot, it uses a portion of its allocated funds to buy assets on the spot market and place sell orders based on the grid parameters. As the bot holds spot positions, price fluctuations may cause floating losses in the orders. However, as long as you keep the bot running for an extended period of time, the losses will eventually turn into profits.
Q: Do position grids have low fund utilization?
A: Position grid bots always hold a portion of their allocated funds to buy the dip. This reserved portion is rarely used up and will also serve as a safety net for risk control purposes, allowing you to enter and exit the market freely. When prices fall, the bot will gradually buy the dip.
Q: Could the price of assets held by position grids fall to zero?
A: BTC is the world's most popular cryptocurrency and has proven long-term value, while Ethereum is the king of all public chains, making ETH a good option for long-term investment. If you believe in the future of the blockchain industry, you don't have to worry about your investment being lost.
Configuration: The annualized grid return backtest is based on historical data and is not a guarantee of future returns. The system recommends geometric mode for grid bots. The grid interval and the number of grids are based on a uniform price percentage difference between orders.
Abnormal risk warning: Grid bots will automatically be stopped if an asset experiences an unpredictable or unusual event, such as suspension or delisting. It is recommended that you make informed decisions after carefully reading the description of the Bitget grid bot product in full and making a reasonable assessment of your risk appetite.