What is Grid Trading Strategy?
Grid strategy is a strategy that best in a volatile market. It performs the strategy in a bounded price range, and "buy low, sell high" in the specific price range.
The bounded price range will be divided by several grid levels, where you can see in the below image as an example. Above the current price, sell orders will be placed at each grid level. Below the current price, buy orders will be placed at each grid level.
How to use Pionex Grid Bot?
Pionex offers its users various trading tools for free, grid trading bot is one of the famous strategies on the list. Under the trading bot tab, you can find a list of tools that Pionex provides. Grid Trading Bot is on the top of the list. Simply click Create and you can start a GRID Bot on Pionex.
For using a grid trading bot on Pionex, you can choose to set the parameter with an AI strategy or set it by yourself.
Pionex AI Strategy
According to the 7 days of backtesting data, the AI strategy suggests the best price range and grid width for setting up a grid bot on the trading pair. All you need to decide is the total investment for this bot.
Set your own grid trading parameters
If you're familiar with the grid trading strategy and have your own thought at the current market condition, you can set your grid trading parameters.
Here are the parameters that you must config:
- The upper bound of the price range
- The lower bound of the price range
- Grid spacing - arithmetic or geometric
- Number of grids
- Use BTC or USDT only?
- Total investment for the bot
Here are the optional parameters:
- Trigger price: activate the bot when the price reaches the trigger price.
- Stop-loss price: sell all your base currency while the price drop below the stop-loss price.
- Take profit price: stop the bot if the price reaches the take profit price. Normally higher than the upper bound of the price in grid trading bot.
After setting up the grid bot, you can see the visualization of grid trading directly on the chart. It's the feature that only on Pionex App for now.