How does grid trading work? What are the grid trading tools?

Dec 30,2022
How does grid trading work? What are the grid trading tools?

World Chain Finance

Earlier, I have introduced what grid trading is,Grid trading is a countermeasure toolThat is, a series of buying and selling prices are structured through a certain price range in a volatile marketAutomatically execute high dumping and low suction according toIt is a trading method to ensure that each selling price is higher than the buying price and strictly abide by it, so as to obtain the band profits in the price fluctuation range. Generally speaking, it is reflective to sell high and suck low.So, how does grid trading work? What are the grid trading tools? Next, let's have a look.

How does grid trading work?

one. Select the appropriate transaction object

When selecting grid trading pairs, it is proposed to meet the following conditions:

one)High volatility: the greater the price volatility, the greater the arbitrage frequency.

two)Deep good: select deep good trading pairs, which is beneficial to the completion rate of each arbitrage.

three)Fast transaction: that is, the time required for a transaction to be completed with a registered order. The faster the transaction is, the shorter the arbitrage time is, and the greater the annualized income is.

twoStrategy selection of grid transaction

Apply self determined countermeasures

-Interval grid: interval grid is used to set an interval. When the price market fluctuates within the interval, it will sell high and attract low, and it will be intelligent arbitrage. The policy of placing orders within a certain range can reduce the losses caused by extreme market conditions, and is suitable for the shock market where the medium and long term trend is not obvious.

-Infinite grid: Infinite grid is improved on the premise of interval grid, allowing no upper and lower limits. The grid moves automatically with the market trend, and intelligently plans to sell high and attract low based on the scale of your invested assets. In case of extreme market, adjustment is required/Gain arbitrage after rebound. Endless range is more suitable for the shock market with medium and long term upward or downward trend.

threeBasic parameters of grid transaction

one)Grid Interval: refers to the forecast used as the price adjustment interval. For example, what I want me to put intoUSDTYou canBTC10000-13000Arbitrage is completed within this price range. The common method of interval setting is toKLineBOLLThe left and right rails are the upper and lower bounds of the interval.

two)Number of grids: The number of grids depends on the density of the grid, that is, the number of sales you want to divide your assets into. The system will help you to fill this range with trading orders, and automatically buy or sell when the price arrives. Generally speaking, it needs to be combinedATRindex+bollIndex, measure the number of grids.

The formula is: grid number=(Interval limit-Interval lower limit)/hourKofATRtwenty

three)Transaction volume of each grid: the amount of capital invested in each grid. The greater the investment in each grid, the greater the utilization rate of funds. However, if it is too high, it is easy to cause insufficient total working capital. You can invest according to your personal capital situation.

*Other basic parameters

-Click "Backtest", and the grid trading program will conduct profit forecast on the trading strategies you set according to the historical records, and display the detailed trading data of the set parameters.

-Click "Adjust Parameters" at the bottom of the back test results page to return to the previous level for resetting. If the parameters are correct, click "Start Countermeasure", and then verify the capital password in the pop-up window to open the grid transaction

*Description of Common Parameters

-Floating income and rate of return:

The floating income is the sum of the floating income of all the unfinished arbitrage (open open position) of the countermeasure.

Volatile return is the percentage of floating income and total investment

-Countermeasure income and return rate:

The countermeasure income is the difference between the total amount of assets currently owned by the countermeasure and the total amount of assets invested in the countermeasure (converted into the countermeasure charging currency). Property conversion takes the current mid opening price as the rate conversion. The countermeasure profit is similar to the sum of the completion income and floating income.

The countermeasure return rate is the percentage of the countermeasure profit and the total investment, which is similar to the sum of the completion rate of return and the volatility rate of return.

What are the grid trading tools?

one, Dispatch Grid Tiantiandan

Dispatch Grid Tiantiandan is a grid trading strategy that sets a very large price range as mentioned earlier in this paper. withBTC/USDTIf the market price isforty-five thousandThe general grid tool may be set in40000~50000However, the price range of daily low orders may be set to4000~100000The dollar makes it almost impossible for the currency price to rise or fall out of this category.

two, Paiwang endless grid

Paiwang Endless Grid is an advanced game of grid trading. It is suitable for users who have a certain familiarity with grid trading. If you are a novice in the currency market or friends who have applied grid trading for the first time, you can first start from the coin security grid trading or Paiwang World.

Paiwang Endless Grid is a grid Tiantiandan with no price range, so its operation risk is higher than Tiantiandan. For grid transactions, the setting of the price range is not only a limit, but also a barrier to maintain customer assets. Because when prices rise or fall rapidly, the price range can at least ensure that the price will not exceed this range, so it will certainly reduce transaction risk.

If the price range is cancelled, it means that the system will place orders even if the price range rises or falls unreasonably. Therefore, investors must be able to accurately predict the market trend to operate the Endless Grid, otherwise the risk they must bear will be much higher than Tiantiandan. However, if perfect investors can properly apply endless grid trading, its benefits will be far higher than traditional grid trading.

three、 Coin security grid transaction

There are many options for setting parameters of Coin security grid transactions, and the maximum leverage provided can reachone hundred and twenty-fiveTimes, and the number of grids can be set up toone hundred and forty-nineCurrency quantity exceedsfiftySpecies, exceptUBesides the standard, it also provides the currency standard. In general, the role of Jin'an grid trading is relatively comprehensive, so it is suitable for novice currency market applications who want to fully understand the grid trading theory. If your goal is to stably obtain passive benefits, friends who do not want to spend too much time on grid trading are recommended to use Paiwang Grid Tiandi Singles.

four. Dispatching reverse grid

Paiwang reverse grid is different from general grid trading. It is suitable for unilateral market decline. It is an investment tool used to help people get through the painful period of continuous decline in currency prices. It is different from the general pricing method of grid transactions. In terms of sending a website, if the customer wants to investBTC/USDT, thenUSDTAs a pricing currency application, the profit that the end user can obtain will beUSDTCarry out liquidation; The reverse grid, on the other hand, has a pricing unit ofBTC

Because the time of reverse grid application is that the market continues to decline, its investment strategy is to buy gradually and periodically through the gridBTCThe main purpose of currency is to increase the total number of objects owned. When the next market starts to rise, sell the currency to earn the difference.

fiveDispatch lever grid

The Paiwang platform itself has a release leverage grid, but its leverage ratio is not the same as that of the currency security assistanceone hundred and twenty-fiveTimes, the leverage grid of Paiwang can provide assistance up to five times. This multiple is actually a guarantee for users. As the higher the multiple, the easier it is to open positions, so friends should pay more attention to risk control!

Speaking of this, I believe you have a certain understanding of how to operate grid trading and what grid trading tools are. in general,The playing method of grid trading is very changeable. If the novice investor or the petty bourgeoisie wants to learn grid trading, they can start from the lower threshold of sending the net to the world. If you want to fully master the investment tool of grid trading, you can apply the currency security grid trading.