Spot trading

Guide to Spot Reverse Grid Trading

2022-08-02 06:310626

Dear Global Bitgetters,

What is Spot Reverse Grid Trading?

The Spot Reverse Grid strategy and Spot Grid strategy are similar in that they both carry out shock arbitrage by buying low and selling high within a certain price range. The biggest difference is that the units for calculating returns are different.

Using the BTC/USDT trading pair as an example, we generally refer to USDT on the right side of the trading pair as the Quote Currency, and the BTC on the left side as the Base Currency.

In Grid Trading, we usually measure the earnings in Quote Currency (USDT), focusing on whether the amount in USDT increases or not.

When using Reverse Grid Trading, we measure the earnings in terms of Base Currency (BTC), focusing on whether the amount of BTC increases.

How to Use Spot Reverse Grid Trading?

Step 1: Visit Bitget, select [Strategy Trading] - [Spot Grid Trading] on the top menu bar.

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Step 2: Select the trading pair you would like to trade.

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Step 3: Create a Spot Reverse Grid strategy on your preferred trading pair with these settings:

i) AI Strategy Creation (Easy Mode)

  • The AI Strategy is used to intelligently recommend the Grid Strategy parameters most suitable for the current market based on the backtest data of the trading pair in the past seven days. With this selected, you only need to preset the number of tokens to invest to start the strategy.

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ii) Basic Mode

  • Range upper limit: When the price is higher than the maximum price in range, the strategy will no longer execute orders outside the grid range.
  • Range lower limit: When the price is lower than the lowes t price of the range, the strategy will no longer execute orders outside the grid range.
  • Number of grids: Divide the range upper limit price and the range lower limit price into corresponding shares.
  • Total Investment: The number of tokens planned to be invested in the strategy.

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iii) Advanced Mode

  • Trigger opening price: When the token price reaches this price, the strategy will be triggered to create.
  • Automatic stop loss price: When the token price reaches this price (the number of base currencies is decreasing), the strategy order will be automatically closed and all the denominated currencies held will be converted into the base currency. (For example, when the reverse grid is opened for BTC/USDT trading pair and the order’s stop loss was triggered, the robot will buy al l USDT into BTC)
  • Automatic profit price: When the token falls to this price (the number of base currencies is increasing), the robot order will be automatically closed and all the denominated currencies held by the robot will be converted into the base currency. (For example, when the reverse grid is opened for BTC/USDT trading pair and the order’s profit was triggered, the robot will buy all USDT into BTC)
  • Limit price for opening order: The parameter is set to control the deviation of the average price of the initial order and the price at the time of placing the order within a certain percentage. (Due to the high volatility of the crypto market, the final trading price will often be different from the price at the time of placing the order, so you can control the price slippage by setting a limit)
  • Grid pending mode (Equal Interval): When creating a grid strategy, each grid interval of the equivariance grid has an equal price range (e.g., 1, 2, 3, 4)
  • Grid pending mode (Isometric Interval): When creating a grid strategy, each grid interval of the isometric grid is equally proportional (e.g., 1, 2, 4, 8)

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Bitget Team

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