What is grid trading?
Grid trading is a strategic tool to automate buy and sell orders at preset intervals and preset price ranges. The feature is designed to help you make profits on small price fluctuations as it performs best in volatile and sideways markets. You can also customize and set grid parameters to define a range to profit from price volatility.
To help you build your own grid trading strategy, we will provide recommended parameters in this article. These include lower price limit, upper price limit, and grid count. The new auto parameters function allows the creation of a grid trading strategy with just one click.
How to use spot grid trading parameters?
Please note that you can only create 1 grid strategy for each trading pair. For other limitations, refer to What Is Spot Grid Trading and How Does It Work.
1. Log in to your Binance account and click [Trade] - [Trading Bots].
If youâre using the Binance App, tap [More] and select [Strategy Trading] - [Spot Grid].
Or tap the strategy button on the trading interface to enter.
2. You can create your own grid trading strategy by clicking [Trade Now], or copy an existing grid strategyâs parameters from [Strategy Pool].
For more details, please refer to How to Create a Spot Grid Trading Strategy on Binance.
3. If youâre creating your own grid trading strategy, youâll be redirected to the spot grid trading interface. Here you can select the [Auto] or [Manual] mode to start.
Using auto parameters
1. Click on the [Auto] tab and youâll see the recommended parameters generated based on the technical analysis of the symbol. You can also click [Copy parameters to Manual settings] to create your own strategy.
Enter the investment amount under [Invest Coin] and click [Create].
2. Check the order details and click [Confirm]. The system will automatically place buy or sell orders at preset prices.
Please note that the recommended parameters are set in Arithmetic Mode by default, and the Sell All Base Coin at Stop is enabled by default.
Users should understand, acknowledge and accept the risks associated. Click on the checkbox and click [Confirm] to place the spot grid order.
3. Please note that the auto parameters function doesnât work when there is not enough trading history on a given asset. Under such circumstances, you will have to set the parameters manually.
You will see the below notice if the historical data on the trading pair is insufficient. Currently, the system requires at least 21 days of data to generate the recommended parameters. The amount of data required may change in the future.
Setting manual parameters
1. There are two ways to set manual parameters. You can copy the auto parameters from the [Auto] tab by clicking [Copy parameters to Manual settings]. You can then modify them for your own grid strategy.
2. Alternatively, click on the [Manual] tab. Select either the [Arithmetic] or [Geometric] mode and enter the parameters for your grid strategy. Click [Create].
3. Check the grid order details and click [Confirm].
4. You may check your running grid strategies from [Running].
If youâre using the Binance App, tap [All Orders] to view the running strategies.
How are auto parameters calculated?
Upper & Lower Price
- Upper Band = MA + BBM * Standard Deviation
- Lower Band = MA - BBM * Standard Deviation
Grid Number
Grid Number = (1 + buffer) * (grid_upper_limit - grid_lower_limit) / ATR
Note:
- Buffer is currently set to 20%;
- ATR period selection:
- For 7 days: use 30-minute candlesticks for the past 168 periods;
- For 30 days: use 1-hour candlesticks for the past 360 periods;
- For 180 days: use 2-hour candlesticks for the past 1080 periods;
For more details, please refer to the Academy article What Is Average True Range?.
Risk Warning: Grid trading as a strategic trading tool should not be regarded as financial or investment advice from Binance. Grid trading is used at your discretion and at your own risk. Binance will not be liable to you for any loss that might arise from your use of the feature. It is recommended that you should read and fully understand the Grid Trading Tutorial and make risk control and rational trading within your financial ability. For a complete strategy trading disclaimer, please refer to here.