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Gate.io Blog Grid Trading video

Grid Trading video

24 May 18:17

Hello guys, today I want to introduce you to a very simple and practical copy trading method - grid trading.

This trading method can help investors gain returns several times or even dozens of times higher than simply holding during a volatile market.

When prices fluctuate within a certain price range, grid trading represents an absolute profit strategy.

In essence, the principle of grid trading is to take advantage of price fluctuations by setting up an automated strategy to buy low and sell high within a custom range.

Those who wish to know more about the grid trading model can refer to the link below the video.

Before conducting grid trading, pick a crypto of your choice. You can choose the currency according to your own preferences and familiarity.

However, one thing to note is that you should probably pick something that has high liquidity, high trading volume, and large price fluctuations in the near future.

I personally like to use ETH for copy trading. And here I am going with ETH in this tutorial. Of course, you can also use other currencies.

Take Gate's grid robot as an example, enter the copy trading page, and start to create a grid strategy. You can see that there are two modes here. One is Smart Grid, and the other is Manual configuration.

The principles of the two modes are the same, but the AI smart grid can save some novice users from the trouble of setting parameters. We'll take a closer look today by manually configuring the grid pattern.

The upper and lower limits of grid trading prices can be roughly understood as the highest and lowest prices of the currency you pick.

The number of grids, that is, how many prices are set in the upper price limit and the lower price limit, and the grid trading will trade at these set prices.

For example, we set the upper limit price of a currency to be 1000, the lower limit price to be 900, and set the grid.

With a grid interval of $25, when the market triggers to prices of 900, 925, 950, 975, 1000, the strategy will execute a buy or sell action.

For example: suppose the current market price is $951, when the price drops from $951 to $950, a buying order is placed. When the price rises from 950 to 975, a selling order is placed. The profit we get is equal to 975-950= $25

The number of transactions per grid is the number of buying or selling in a single grid. If you do not want to invest too much at a time, you can set a small amount, so that the investment amount will be relatively low.

Auto Stop-Loss Price、Auto take-profit Price: Many investors don’t understand the special meaning of these two parameters.

In fact, as long as the price keeps changing between the set upper and lower price limits, users will definitely get benefits. How much profit you can earn is just a matter of time.

There is only one scenario where grid trading will fail. That is when the price breaches a preset upper or lower limit.

With these two parameters, grid trading can be automatically stopped to avoid losses when the price breaks the upper and lower limits.

Well, that’s all the basic function keys required for grid trading settings.

The most difficult part of grid trading is how to set the price.

We will show you an easy way.

We choose to add a Bollinger Bands indicator, the largest segment of the recent Bollinger Bands opening.
The upward side that corresponds to the upper limit of the Bollinger Band is the upper price limit, and the lower limit is the lower price limit.

Note there are many ways to determine the upper price limit and lower price limit. In this video, you can see the simplest way which is easy for you to operate.

As the most basic copy trading strategy, grid trading is profitable in the market fluctuations after setting the upper price limit and the lower price limit.

I hope everyone who watches this video will find an efficient way to determine the prices.

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