What Is Infinity Grid Trading and How Does It Work
The reason why it's called the Infinity Grid is because it brings you infinite possibilities. Not only does it break through the framework limitations of price, but it also allows you to always have coins to sell, thus enabling limitless survival. If you don't want to miss the opportunity of catching both the body and tail of the fish (a metaphor for getting the whole benefits), if you don't want to suffer from the pain of missing out while watching others ride the trend and enjoy the market waves, then you absolutely cannot miss the Infinity Grid!
Part 1 - What is KuCoin Infinity Grid Trading Bot?
1.What is Infinity Grid？
Infinity Grid refers to an evolved version of the grid trading bot, which perfectly solves the problem of price breakouts exceeding the grid upper limit causing users to miss opportunities. The Infinity Grid bot will assist you to buy low and sell high continuously for 24 hours a day, and ensures that you hold equivalent digital assets in a rising market. (For example, in the BTC/USDT pair, when the market continues to rise, the bot will continuously sell BTC, but ensure that it always holds BTC equivalent to the initial USDT.)
2.Advantages and Disadvantages of Infinity Grid
Solves the problem of users missing opportunities when prices break through the traditional grid upper limit;The capital utilization rate is not high. If the market continues to rise unilaterally, holding the currency may appreciate faster.Suitable for:Suitable for fluctuating upward markets.
3.Why Infinity Grid Bot?
The infinity grid is an derivative strategy of the spot grid, designed to avoid "missing out" from the crypto pumping.
When you run the Infinity Grid Bot, as the market pumps, it can ensure that the bot will never run out of the range, and continue to perform "buy low and sell high" operations to help you carry out arbitrage, and at the same time the bot will hold a number of crypto equal to the value of initial investment.
Take BTC/USDT as an example. During pumping, the bot will continue to sell BTC, but ensure that there is always BTC equivalent to the initial USDT in your holding.
4.How does Infinity Grid Bot works
Compared with Spot Grid Bot that place orders with a fixed number, Infinity Grid Bot place orders in percentages and there is no upper limit.
Take the BTC/USDT as an example: suppose the entry price of BTC/USDT is 50,000, set the single grid profit to 1%.
When it pumps to the first grid, the BTC held is worth 50,500 USDT, so the bot will sell 500 USDT worth of bitcoins. Therefore, the number of remain bitcoins still value 50,000 USDT. Similarly, BTC will be bought when it falls, keeping the total value of BTC in hand at 50,000 USDT.
Part 2 - How To Create Your First Infinity Grid Bot?
Step 1: Tap [Infinity Grid] then tap [Create] to reach the Parameter page;
Step 2: Choose [AI Parameters] or [Customize] to configure your bot;
Step 3: If you choose [Customize], you need to fill in the following three parameters manually:
After setting the parameters, click the [Create] button and start making money!
Order Parameter Explanation:
• Investment Amount: The total amount of funds put into the robot
• Total Profit: Grid profit + Floating Profit and Loss
• Floating Profit and Loss: (Current price - Average buying price) * Quantity of tokens held by the bot
• Grid Profit: The profit earned from the grid bot's arbitrage strategy of buying low and selling high
• Grid Annualization: [(Grid profit / Investment amount) / (Operation time / 365)] * 100%
• Total Annualization: [(Total profit / Investment amount) / (Operation time / 365)] * 100%
Part 3 - Key To Maximizing Your Infinity Grid Bot Profits
For the size of the profit, we recommend 1% in a bear market, and in a bull market due to larger fluctuations, a profit range ratio of 2.5~3.5% can be set.
Suitable for Long-term Optimistic Investment Targets.
Since the Infinity Grid has no limit on the price range, the sky is the limit above the spot price when the order is placed. Therefore, compared to traditional grid trading where the price upper limit is constrained, Infinity Grid can be set for a longer time, and you will not encounter problems needing to start a new trading bot due to the price breaking the upper limit. If you are long-term optimistic about an investment target, or if you don't quite understand how to analyze the future price trend but still want to invest long-term, then Infinity Grid is a better choice than traditional grid trading.
Suitable for Investment Targets with Potential Fundamentals and Favorable News
In the cryptocurrency market, only 20% of the time belongs to unilateral trends, but there are many different factors that may cause different market changes. The information in the cryptocurrency market circulates quickly, and the industry changes are rapidly iterating. Therefore, if the investment target is in line with current trends or has innovative applications, or is receiving attention or investment from investment institutions or celebrities, these reasons can drive coin prices and present opportunities for unilateral market conditions. If investors usually pay a lot of attention to the fundamental and news aspects of their investment targets, they can use the Infinity Grid at the appropriate time to not miss good arbitrage opportunities.
Suitable for Entry at Market-Wide Perceived Lows
When the market is continuously depressed, or generally believed to be relatively low, it is a good time for the Infinity Grid to enter. Since we cannot accurately predict how much the coin price can rise in the future, and to avoid missing the main rise segment and dilution of profits due to repeated entries and exits during the investment process, you can choose the Infinity Grid at this time to extend the holding time as much as possible and capture all profits during the entire rise process.