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Grid Trading Manual
Gate.io
Updated at:83 days 20 hours ago
1. AI Smart Grid
By backtesting the historical data of past 7 days, AI Grid calculates the optimal grid parameters of upper limit price, lower limit price, and number of grids. You only need to decide how much to invest. The minimum investment is also displaying to you.
Click “Create AI Strategy” button and you can create one.

2. Create you own grid strategy
On the right side form, you can create a grid strategy manually by entering the parameters yourself.
If you want to modify the AI strategy, you can click “Fill the form on the right side” button to auto fill and edit it.

3. Terms and definitions
Lower limit price: the lowest buy price. If the last price on the market is lower than it, no buy order will be placed. The lower limit price can not be a sell price in the strategy .
Upper limit price: the highest sell price. If the last price on the market is higher than the price, no sell order will be placed. The upper limit price cannot be a buy price in the strategy.
Number of grids: the grids quantity that are used to exe-cute the strategy, from 2 to 100 grids.
Arithmetic progression grids: successive grids prices are of equal interval, formula:

(upper limit price-lower limit price)/(number of grids -1)

Geometric progression grids: successive grid price: the previous one is a common ratio.
Formula of the common ratio q.
higher limit price/lower limit price= qn-1
in which n is the number of grids.

4. Strategy Termination
Strategy is expected to continue as long as the market price is within lower and upper price range. But it will end in the following conditions:

1). Canceling any limit price placed by this strategy will end the strategy
2). Failing to place order based on the strategy due to inadequate balance or any other reason will end the strategy
3). Triggering stop-loss or take-profit will end the strategy

When a strategy ends, all open orders placed by the strategy will be cancelled automatically.

5. Stop-loss and take-profit
When stop-loss is triggered, a sell order will be placed to sell the base currency quantity of the strategy at the stop-loss price.
When take-profit is triggered, the strategy will end and cancel all open buy orders automatically.

6. Orders Example:
If the lower limit price is 9000 usdt, upper limit price is 10000 usdt, grids quantity 11, sell/buy amount of each grid 0.1 BTC, the last price at market 9500 usdt;
then the bid and ask orders will be as follows:


Bid1

9400

ask1

9600

bid2

9300

ask2

9700

bid3

9200

ask3

9800

bid4

9100

ask4

9900

bid5

90000

ask5

10000



1)When the market price drop from 9500 to 9350, the bid 1 fills and a sell order at the price of 9500 will be placed.
Orders will be:

Bid1

9400

ask1

9600

bid2

9300

ask2

9700

bid3

9200

ask3

9800

bid4

9100

ask4

9900

bid5

90000

ask5

10000


2) When market price rise to 9650,

Bid1

9500

ask1

9700

bid2

9400

ask2

9800

bid3

9300

ask3

9900

bid4

92000

ask4

100000

bid5

91000



bid6

90000




In summary, the strategy is to place orders with the reference of entry price, bid orders below the entry price and ask order higher than entry price. When one order at one side fully fills, a order of the opposite will be placed.


7.Prepare for fees:
By default, fee will be covered by Point first, then base currency
If having enabled "Use GT to debit trading fee", GT will be used first to cover trading fee.
For GT and points, 20 GT/Point will be transferred in grid trading to start. And when the fee is less than 20 points/GT, auto transfer at 20 points/GT each time.

Below are how the trading fee will be reserved for grid trading.
1) If you have over 20 Points and haven’t enabled “Use GT to debit trading fee" when creating the strategy:
Then 20 Points will be deducted from spot balance as a reserve for trading fee. The fee reserve will be auto replenished with point transfer of 20 points each when the fee reserve is less than 20 points.
Note: If you do not have 20 Points at spot balance, no auto transfer will occur. The strategy will consume base currencies as fee and adjust the ask and bid quantity according to existing amount.

2) If you have enabled “Use GT to debit trading fee",
Then 20 GT will be deducted from spot balance as a reserve for trading fee. The fee reserve will be auto replenished with GT transfer of 20 points each when the fee reserve is less than 20 GT.
Note: If you do not have 20 GT at spot balance, no auto transfer will occur. The strategy will consume base currencies as fee and adjust the ask and bid quantity according to existing amount.

8. Trading commission
Fees: we charge a flat 0.2% on trades conducted under any quantitative trading strategies in spot market.
GT in the strategies: GT balance in any quantitative trading strategies are excluded when we calculate the 14 days’ average/minimum GT holding.




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