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Support CenterNewsOver 10% Return of Grid Trading in a Week
Over 10% Return of Grid Trading in a Week
2022/03/08 18:01:35

This week, we introduce you to our grid trading king on FAMEEX. Trading for over 194 times with up to 11.04% return only in a week. So what’s the takeaway of our trader’s strategy on grid trading? Here’s our recap for you.

Basic Set-up Parameters on Grid Trading

Trading Pair: ETHUSDT

Price Range: 1700~2550   

No. of Grid: 50 grids


What You Need to Know Before Setting Up a Grid Trading Strategy?

  • Choose your familiar trading spots: determine accurate grid numbers and price range by familiarizing yourself with your trading pairs in crypto market.

  • Decide long or short term strategy: A long-term strategy might set up a larger price range to capture the long-term price movement and vice versa.

  • Determine a reasonable price range by observing price direction: when it’s bullish market, you can 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 to prevent to buy in too many coins at the higher prices.

Parameters of the Price Range

First, you need to determine the strategy for a long or short term. If it's a short-term strategy, set the price range smaller, versus a long-term strategy, set the price range bigger. 

The trader picked a short-term strategy and expected to run it for 1-2 weeks.

The Upper Boundary of the Price Range

According to our trader’s observation , since 15th April in 2021, the price of Ether(ETH) has reached $2,550 then quickly drawdown. In this case,  $2,550 could be a short-term resistance and that’s why our trader set it as the upper boundary price.

The Lower Boundary of the Price Range

Due to the volatility of Ether(ETH) price last month, the price fell to $1,700 several times. In this case, our trader assumed $1,700 could be a support and that’s why our trader set it as the lower boundary price.

Stop-Loss Price

Our trader didn't set up the take-profit price but only the stop-loss price. If Ether(ETH) price drops down to $1,650 which is lower the support at $1,700, it implies that the price would probably keep dropping. That’s why our trader set $1,650 as stop-loss price to cut loss.

Grid Numbers

Given this short-term strategy and highly volatile price of Ether(ETH) recently, our trader set 50 grids to trade frequently. This allows you to make profits in volatile market conditions.

Note that a great number of grids could affect your profit margin, because more transaction fees could be incurred.

Grid Trading Tips 

  • Pick a coin with long-term uptrend.

  • Risk could be lowered by setting up a larger range of price To avoid the loss in a rapid and volatile market, you need to adjust selectively on market conditions suitable for your strategy to decrease grids when the price is fluctuated and increase grids when the price is stable.

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