Q: What's Classic Grid?
A: Classic Grid (Spot) is a trading strategy that seeks profit from market fluctuations by positioning buy orders and sell orders. The system will place buy orders when the price drops and sell orders when the price climbs over the base currency at set intervals around the set price to profit from the market trends.
Q: For what conditions can I use the Classic Grid?
A: The Classic Grid is appropriate for conditions when there are fluctuations in the market within a certain price range. The robot will buy low and sell high by creating orders at incrementally increasing and decreasing prices so as to make profits from the volatility.
Q: What profits does grid trading earn? Base currency or quote currency?
A: Profits of quote currency. Suppose you trade BTC/USDT, for example, BTC is the base currency, and USDT is the quote currency. The grid trading will earn USDT for you.
Q: Which trading pair is suitable for grid trading?
A: If you are a novice, it is recommended to choose popular trading pairs such as BTC/USDT and ETH/USDT with high liquidity. If you are experienced in grid trading, you can try trading pairs with high volatility. However, what you must bear in mind is that risks are along with profits.
Q: Can Classic Grid definitely earn me profits?
A: Grid trading can only assure grid profits. However, when the price of base currency keeps decreasing, the cost to maintain the position may exceed the market price and lead to floating losses.
Q: Why does the trading bot buy the base currency of the selected trading pair at the start of the grid trading?
A: The system will automatically buy in a certain amount of base currency at the start of trade to seek profits from the volatility by positioning buy order and sell orders.
Q: How to calculate the amount of base currency purchased at the start of the trade?
A: Calculation formula: Buy-in amount of base currency = No. of sell orders * Amount of base currency in each grid.
Q: Can I set stop loss for grid trading?
A: YES. You can set the stop price at “Advanced Settings”. When the price of the base currency is lower than the stop price, the trading bot will automatically sell out the base currency to stop loss.
Q: Can I set take profit for grid trading?
A: YES. The Max. Price of the grid range is also the take profit price.
Q: Will the amount of trading fees exceed that of grid profits?
A: NO. Only when the grid profits are greater than trading fees will the Classic Grid place the order.
Q: Is it the more grids, the higher my profits?
A: NO. Our formula for grid profits calculation is: Grid Profits = Price gap between grids * Buy-in amount of each grid * No. of filled orders. From the formula we can see that only when the token price is always in the price range you have set, then the grid can generate profits. Profits depend much on No. of filled orders and profits per grid. When the total investment keeps unchanged, the more grids, the less the price gap between grids and the buy-in amount of each grid, and the less the profits of each trade. Therefore it is necessary to set a proper No. of grids.
Q: Is the price range the larger the better?
A: NO. Grid Profits=Price gap between grids*Buy-in amount of each grid*No. of filled orders. The larger the price range, the less the filled orders. To set a proper No. of grids and price range, you need to keep exploring through practice.
Q: Have anyone really earned profits through grid trading?
A: Grid trading is one of the most classic trading strategies. Lots of users have already made profits through it, you can check the LeaderBoard.
Q: I have run the grid trading for three days and did not make much profits, should I give up?
A: Grid trading needs your patience, you need to be the friend of time. For only three days, the results may not be satisfactory, just keep operating it and look how’s it going after a month, you will receive what you want. Besides, you can also learn from experienced users and optimize your parameters to improve profits.