Catch every movement in a range
The Grid Bot is designed to catch every price movement in the specified range.
The bot splits the range into multiple Grid Levels and places a Buy or Sell Limit Order on every level, which allows one to buy every drop and sell every rise.
As the Grid Bot places both Buy and Sell orders at the same time, it requires both coins from the pair to trade. If you trade BTC against USDT, you need both BTC and USDT.
Upper & Lower Grid Levels
These are the limits of the range where the bot trades.
Let's say the BTC price is near $7000, and you want to trade the $800 range above and below the current chart price.
It makes $7800 as an upper limit price and $6200 as a lower limit price.
Create the Grid Levels
Now the bot needs to split the provided range into multiple levels.
The Levels setting dictates how many Grid Levels the bot should create. The Automatic strategy determines the price levels automatically.
Let's set 9 Grid Levels, to keep our example simple.
It is possible to specify up to 201 Grid Levels but be warned - exchanges have different limits for the maximum amount of orders you can create per chart.
We now have a Grid! Hence the name GRID Bot!
Avoid the closest level
GRID Bots don't place any order at the nearest to the current price level. This is to prevent the bot from buying and selling coins for the same price and incurring a 0% profit trade (in fact, it could count as a loss as the trading fees will need to be accounted for).
In our example, the price is nearest to Grid Level #5, so the bot removes it.
This is represented on the chart preview as "Waiting":
Let's paint our Grid Levels!
The bot turns all levels below the current price into Buy orders, and these are represented as green lines on our Grid Bot chart.
All Grid Levels above are painted red as they are all Sell orders.
When the price rises
Whenever the chart price rises and crosses a Sell Grid Level, profit is made as the coin is sold (BTC in our example) as the Sell order fills. The bot then places a new Buy order one level lower.
Say the price reaches $7200 and fills your Sell order #6, then the bot places a new Buy order at level #5.
Level #6 becomes inactive now as it's filled, and it's closest now to the current price:
When the price drops
Whenever the chart price falls and crosses a Buy Grid Level (e.g., #5), the Buy Limit Order created by the Grid Bot earlier is filled (USDT is used to buy BTC, in our example). The bot then places a new sell order one level higher (#6).
As per our example, the price reaches $7000 and fills Buy order #5, and the bot places a new sell order at level #6.
Level #5 is closest to the current price and is thus inactive now:
Buying and selling continue until you stop the bot
See the animated example in the GIF below, or use this link to open a bigger version: