Grid Trading

Grid trading is a strategy where bot places many small orders at different price levels and profits from price swings.

How Grid Works

Imagine a price corridor:

• Lower bound: $40,000
• Upper bound: $50,000
• Levels: 10

Bot places 10 buy orders between $40k and $50k. When price touches a level, bot buys. When price rises, bot sells for small profit (usually 1–3%).

Grid Example (5 Levels)

Levels between $40k and $50k:

Level	Price	Action	Profit
1	$40k	Buy	-
2	$42.5k	Buy	-
3	$45k	Buy	-
4	$47.5k	Sell	+2.5%
5	$50k	Sell	+1.2%

Each order makes 1–3% profit, and grid can complete dozens of cycles daily!

When to Use Grid?

✅ Sideways market (price bounces in range) ✅ Volatile market (lots of up-down moves) ✅ When you know support/resistance levels

❌ Strong uptrend (bot can't keep up) ❌ Strong downtrend (bot buys uselessly)

Grid Parameters

Number of Levels

• 5–10 levels: small grid, suits $1,000 position
• 10–20 levels: medium grid, for $5,000–10,000
• 20+ levels: large grid, for $50,000+

More levels = more frequent trades = higher profit, but also higher fees.

Order Size

Usually distributed evenly:

• Budget $1,000 ÷ 10 levels = $100 per level

Price Range

Choose where price usually swings:

• Lower bound: support (level below which price rarely falls)
• Upper bound: resistance (level above which price rarely rises)

Tip: use last month's chart.

Grid Risks

Risk 1: Price Goes Below Range

Bot bought while falling, price keeps dropping.

• Solution: add stop-loss 10–15% below lower level

Risk 2: Price Doesn't Return

Bot accumulated position, price didn't come back.

• Solution: don't use grid in strong trends, only sideways

Grid vs DCA Comparison

Aspect	DCA	Grid
Trade frequency	1x per day/week	10–100x per day
Profit per trade	0% (accumulation)	1–3%
Monthly profit	+50% over 6 months	+10–20% monthly
Risk	Low	Medium
Complexity	Easy	Medium

Profit Calculation Example

Parameters:

• Range: $40k–$50k
• Levels: 10
• Profit per trade: 2%
• Budget: $1,000

One complete cycle:

• Execute 10 buy orders, 10 sell orders
• Total profit: 20 trades × 0.5% fee = -10% loss
• Profit: 10 trades × 2% = +20%, minus fees = +10% per cycle

If price cycles 5 times monthly, you get +50% monthly!

Recommendations for Beginners

1. Start small (5 levels, $500)
2. Choose sideways market (e.g., Ethereum between $2,500–$3,500)
3. Monitor price (stop bot if it exits range)
4. Increase gradually (after first month success)

Ready for more volatility? Grid is great for earning!