What is a Grid bot?

Automate trading to efficiently capitalize on price fluctuations for optimal returns.

Updated over a week ago

Grid Bot on XREX crypto-fiat exchange is a trading bot that executes the grid trading strategy in the cryptocurrency spot market. It automates the process of buying and selling cryptocurrencies at predetermined levels, aimed at benefiting from price swings and achieving consistent profits.

What is grid trading strategy?

Grid trading is a strategy utilized in the spot market of cryptocurrency trading, which involves setting a grid of both buy and sell orders at predetermined levels above and below the current market price. The purpose is to benefit from price swings, regardless of the user's long or short position.

What are the advantages of using Grid bots?

How to create a Grid bot on XREX?

Once you have signed up and passed identity verification, you'll be faced with two options for how you would like to proceed with creating your first Grid bot: Smart bot or manual settings. The Smart bot recommends parameters based on 21 days of backtesting, while manual settings allow you to customize various trading options such as short or long strategies and other details to suit your preferences. For more experienced users, XREX also offers advance settings for further customization. You can learn more about the differences between the Smart bot and manual settings by clicking here or check out our step-by-step guide to get started with creating your first Grid bot on XREX crypto-fiat exchange.

Trading pairs & fees

Coin and token

Trading Pair

Fee

BTC, ETH, XRP, BNB, MATIC, SOL, LINK, AVAX, DOT, APE, ATOM, SAND, BCH, MANA, AAVE, ALGO, GMT, MKR

USDT

0.05%

BTC, ETH, XRP, SOL, LINK, DOT, BCH, MKR

USD

0.05%

BTC, ETH, XRP, BNB, MATIC, SOL, LINK, AVAX, DOT, APE, ATOM, SAND, BCH, MANA, AAVE, ALGO, GMT, MKR

TWD

0.05%

BTC, ETH, XRP, BNB, MATIC, SOL, LINK, AVAX, DOT, APE, ATOM, SAND, BCH, MANA, AAVE, ALGO, GMT, MKR

USD91

0.05%

BTC, ETH

USD971

0.05%

ETH, BCH

BTC

0.05%

Commons terms to know

Terminology

Description

Profits per match

The profits per match refer to the amount of profit that the bot aims to make on each grid level.

Quantity per order

The quantity per order refer to the amount of cryptocurrency that the bot will buy or sell on each grid level.

Bot closure

When using a Grid bot, there are several options available on how to close a position, depending on your investment goals and market conditions. Learn more about it here.

Unmatched P&L

Unmatched profit in grid trading refers to the difference between the profit of an open trade and the profit that would have been achieved if the trade had been closed at the same time as its corresponding opposite trade. Essentially, it's the unrealized profit that's left on the table when the grid trading strategy is used.

Matched profit

Refers to realized profits that takes place when the bot executes a buy and sell trade and the price moves in the direction that was expected. Learn more about unmatched and matched here.

Grid mode

Refers to the way in which intervals between buy and sell orders are calculated in the Grid trading strategy

Arithmetic grid mode

Arithmetic grid mode is a trading strategy used for Grid bot where buy and sell orders are placed at fixed intervals. Each grid has the same profit per matched trade, but the percentage of profit per match may differ between grids. This mode is particularly effective in stable market conditions, where cryptocurrency prices remain relatively constant.

Geometric grid mode

Geometric grid mode is a trading strategy used for Grid bot where buy and sell orders are placed at exponentially increasing or decreasing intervals, and the price difference for each grid may differ based on market volatility. Each grid has a different profit per matched trade, but the percentage of profit per match remains the same across all grids. This mode is particularly effective in more volatile market conditions, where cryptocurrency prices are subject to significant fluctuations.

Examples of profit and loss

Explanation of Grid bot user A closing profit

User A invested $1000 in BTC/USDT trading pair using Grid bot on XREX. They set their upper and lower price range and selected the number of grids they wanted to use. They also set up close triggers to manage their risk. The bot monitored the market and automatically placed buy and sell orders according to the set levels. After a week, the price of BTC/USDT fluctuated, and the bot executed multiple trades, resulting in a profit of 5%. User A was satisfied with the result and decided to close the bot and claim their profits.

Explanation of Grid bot user B taking loss

User B also invested $1000 in BTC/USDT trading pair using Grid bot on XREX. They set their upper and lower price range and selected the number of grids they wanted to use. However, they did not set up close triggers, as they were confident in the market. Unfortunately, after a few days, the price of BTC/USDT dropped significantly, triggering a sell order at a loss. The bot continued to execute trades, but the losses kept accumulating. User B became worried and decided to manually close the bot, resulting in a total loss of 10%.

These examples highlight the importance of setting up close triggers while using Grid bot to manage risks and maximize profits. It also shows the potential risks of trading in the volatile cryptocurrency market.

Smart bot vs. manual settings

Explanation of Smart bot

The Smart bot uses backtesting to evaluate the performance of a trading strategy using historical market data. By analyzing historical price data for a specific trading pair over a set period of time (in this case, 21 days), the bot can recommend parameters for live trading. This approach helps to maximize profits and reduce risk, providing users with greater confidence in their trading strategy. Follow our step-by-step guide to see how to create a smart bot on XREX crypto-fiat exchange here.

Explanation of manual and advance settings

When you're setting up a Grid bot, you have the option to manually enter the trading details to adjust your personal strategy. With manual settings, you are required to select a grid strategy, set your desired lower and upper price range, and enter the number of grids you want to use. Optionally, you can choose to configure more with the advance settings.

For those with more expertise, you can use advanced settings to further configure your position. The advanced settings include selecting your grid mode arithmetic or geometric, and the option to set up start and close triggers.

Start and close triggers are important options to consider when using advance setting for the Grid bot. Start triggers allows you to set a price at which your bot will automatically open the position. On the other hand, close triggers allows you to set a threshold at which your bot will automatically sell your assets if the price drops below or rise above a certain level, helping you to minimize your losses. These features can be used in combination with the grid trading strategy to help you maximize your returns while minimizing risks.

How to check positions?

Explanation of Grid bot details

When you locate the specific Grid bot for which you want to check and click on the View Details, you'll then see three tabs titled: Transaction, Working, and Grid Details.

  • Transaction: This tab will give you a quick overview of your matched and unmatched profits (P&L).

  • Working: This tab will allow you to review your open orders, both buy and sell orders.

  • Grid Details: This tab covers the parameters and other specific settings of your Grid bot.

By reviewing each of these tabs, you can gain insight into your current positions and make informed decisions about your trading strategy. It is recommended to check your positions regularly.

Explanation of Matched / Unmatched Profits

Matched profits refer to profits that are generated when the bot executes a trade and the price moves in the direction that was expected. Unmatched profits refer to profits that are generated when the bot executes a trade and the price moves in an unexpected direction.

For example, if the bot buys a cryptocurrency at a low price and sells it at a higher price, the profit would be considered matched. If the bot buys a cryptocurrency at a low price and the price decreases, the profit would be considered unmatched.

How to close Grid Bot?

Explanation of different options to close position

The options for closing a Grid bot on XREX crypto-fiat exchange give you greater control over investments and allow strategies to be adjusted based on market conditions. This flexibility and control offers a convenient and effective solution to optimize crypto trading while minimizing time commitment.

You can opt to manually close the bot at any time by using measures such as Sell all at market price. You can also predetermine when to close upon creating the Grid bot by setting a Close triggers. By making use of these different closing options, you can optimize your trading strategy to achieve your desired profit targets while minimizing risk exposure.

Manually close a bot with the following measures:

  • Sell all at market price: When the bot is closed, assets are sold at market price.

  • Keep all: When the bot is closed, you retain all of your current assets.

  • Sell all at limit price: When the bot is closed, a limit order will be placed.

Predetermine when to close a Grid bot with advance settings:

  • Close triggers: When you turn on close triggers, please set the close grid when price rises above or close grid when price falls below price. The grid will stop when the last price of the pair you have chosen reaches the set close grid when price falls below and/or close grid when price rises above price.

  • Sell all upon closure: When setting up your Grid bot, there is a check box that allows you to predetermine whether to sell all remaining assets when the position is closed.

More FAQs

What kind of investment mindset is required to use the Grid bot on XREX crypto-fiat exchange?

It's important to have a long-term investment mindset when using the Grid bot. The bot operates based on a strategy that aims to capture small, consistent profits over time, rather than attempting to make large, quick gains. It's also important to have a well-diversified portfolio and not to invest more than you can afford to lose.


Who would benefit from using the Grid bot on XREX crypto-fiat exchange?

The Grid bot is suitable for a wide range of traders, including both experienced and novice traders. It is particularly useful for traders who are looking for a hands-off approach to trading, as the bot will automatically execute trades based on the parameters you set.


What is the difference between a smart bot and a manual bot?

A smart bot recommends parameters based on a 21-day backtest, while a manual bot requires the user to decide on a trading strategy (long vs. short), price range, number of grids, and how much they would like to invest. The manual bot also offers advanced settings for further configuration of the position.


What should I do if the Grid bot is under loss?

If the Grid bot is under loss, it's important to assess the reason. If the loss was due to market conditions, it's important to remember that this is a normal part of trading and to stay patient. If the loss was due to an issue with the bot's parameters, you may need to adjust them to ensure that the bot is executing trades in line with your desired strategy.


What is Grid mode, and what are the differences between arithmetic and geometric modes?

Grid mode refers to the way in which intervals between buy and sell orders are calculated in the Grid trading strategy. Arithmetic mode uses fixed intervals, while geometric mode uses variable intervals that change based on market volatility. Arithmetic mode is best suited for stable market conditions, while geometric mode is better for volatile market conditions.


How do I differentiate between the average cost of my base holding and the average cost including my realized P&L?

The avg. entry price reflects the amount you've initially invested to open a Grid position. However, the avg. entry price including P&L considers both your initial investment and any subsequent matched profits.

In essence, the latter metric (including P&L) provides a more comprehensive view of your investment's actual performance, accounting for both initial expenditure and trading outcomes.


How to share my Grid bot profits?

** Please note that the images and videos displayed here may not always reflect the most current version of the XREX App. For the latest updates, we encourage you to refer directly to the XREX App. **

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