Register
Support Center

FAMEEX provides a user-friendly, secure, reliable, and excellent crypto trading experience. Download our mobile APP and Trade your Bitcoin anywhere and whenever you want!To trade

Search
Support CenterOperation guideHow to Start Grid Trading
How to Start Grid Trading
2021/12/23 20:14:55

Please check our tutorial video to help you solve your problems or understand more regarding related topics.


If you would like to know more details, please read the whole article below.

 

Here is our tutorial video: https://www.youtube.com/watch?v=qZ26pXhnpXE&t=27s



1. What is Grid Trading?


Grid trading is a strategic method which allows users to make profits with price fluctuations, without timing the market and betting on ups and downs, to achieve "buy low and sell high," obtain stable return within the specific range.


2. Grid Trading Parameters


The price difference of each grid: when prices fluctuate at specific intervals, setting up the price range, our system will separate your fund into several parts to automatically execute a low buy order corresponding to the high sell order. This strategic tool allows you to make stable profit by placing a series of buying and selling orders at set intervals around a set price. The orders will be placed automatically within a 24/7 trading robot. 


(1) The Lower Boundary of the Price Range: buy low and sell high above this price. No more open orders if lower than this price.


(2) The Upper Boundary of the Price Range: buy low and sell high under this price. No more open orders if exceeding this price.


(3) Stop-Loss Price range: When the asset’s price reaches the given stop price, the stop-limit order is executed to buy or sell the asset at the given limit price or better. When the market is bullish or bearish, you can set up the stop price immediately to avoid and reduce your loss.


Here are 2 optional prices that you can set up.


a. Entry Price: When the spot is in uptrend and might exceed the resistance, set up the up stop-loss price in order to avoid the uptrend in the market to keep your profit opportunity. While the market price reaches your up stop-loss price, the grid bot will buy all of your coins at the market price to keep your coin in your account.


b. Stop-Loss Price:  When the spot is in bearish market and might draw down the support, set up the stop-loss price in order to reduce the loss in grid trading. While the market price drops to your stop-loss price, the grid bot will sell all of your coins at the market price to reduce your loss.

 

(4) Grid Numbers: This is the number to separate the price range into multiple amounts by placing a series of buy and sell orders. In this way, it constructs a trading grid. When the price is fluctuating, set up less numbers of grids, vice versa. Too many grids will cause the revenue to be insufficient to cover the transaction fee, and too few grids will cause the grid spread to be too wide and difficult to match.


(5) Transaction Amount of Each Grid: Each transaction amount of grid trading is fixed.

 

(6) Profit of Each Grid = (The Highest Price of the Order - The Lowest Price of the Order ) / Grid Numbers X Transaction Amount of Each Grid


(7) Matching Transaction Times: once the total numbers of buying low and selling high

 

(8) Realized Yield = Matching Transaction Times X Profit of Each Grid + Loss Amount of triggered price in up and dropping

 

(9) Yield = Realized Profit / The Highest Used Fund in History X 100%

 

3. How to start with grid trading?


(1) Web


a. Choose a trading pair. FAMEEX supports any pairs on grid trading, for example, you can choose BTC to USDT.




b. According to the market trend, you can set up the price on the right trade panel for the lower and upper boundary of the price range.




c. Optional to select your stop loss price range. When it’s bullish market, you need to set up a upper boundary price much higher than the current market price. On the contrary, when it’s bearish market,  you should set your lower boundary price much lower than the current market price.




d. Set up the Grids, which is the number of grids, based on your price range. Determine the reasonable grid numbers, not too many or too little.




e. Set up the Amount and Name for your grid trading. You can decide the amount based on your account balance to ensure that the fund of first order is lower than the account balance.


f. Set up all the parameters and click [run] to start trading. 




(2) Mobile: 


a. Click [Strategy], then choose [Spot Grids].





b. Choose a trading pair. FAMEEX supports any pairs on grid trading, for example, you can choose BTC to USDT.


c. According to the market trend, you can set up the price on the right trade panel for the lower and upper boundary of the price range.




d. Optional to select your stop loss range. When it’s bullish market, you need to set up a upper boundary price much higher than the current market price. On the contrary, when it’s bearish market,  you should set your lower boundary price much lower than the current market price.




e. Set up the Grids, which is the number of grids, based on your price range. Determine the reasonable grid numbers, not too many or too little.




f. Set up the Amount and Name for your grid trading. You can decide the amount based on your account balance to ensure that the fund of first order is lower than the account balance.


g. Set up all the parameters and click [run] to start trading. 








Related Articles
Copyright © 2018-2021 FAMEEX.COM All Rights Reserved
FAMEEX APPMobile trading, anytime, anywhere
Download