What Is Spot Grid?
CoinEx Spot Grid is a quantitative trading strategy. By creating grids, the system will automatically execute buy low and sell high, helping you accumulate revenue in volatile market conditions.
The features are as follows:
1. Carefree with auto order submission
If you have little time to keep an eye on the market but still want to revenue from the market fluctuations, Spot Grid is here for your assistance - it helps traders take trading chances, reduce operating costs, and easily revenue in volatile market conditions.
2. Rational investment using auto execution
Spot Grid offers a rational way of trading under strategic trading, where orders are submitted and executed automatically. It frees you from herding impulse and emotional swings caused by market fluctuations, thus reducing trading risks, making investment more scientific and objective.
3. Accumulate revenues via price gaps
That is, to submit a sell order at a rather high position so it can be executed as the price rises, and to buy at a low position when the price falls, and back forth. In this way, more revenues are accumulated through continuous circulation of selling high and buying low.
How to Create Strategy for Spot Grid
Step 1: Visit CoinEx official website (https://www.coinex.com), log in to your account, and select [Strategic Trading] under [Finance] in the top-left corner.
Step 2: After entering the page of [Strategic Trading], find the [Spot Grid] and click [Create Strategy].
(1) When creating a strategy for the first time, you can read the [Spot Grid - Beginner's Guide] in detail, and then click [Got it] to the next step.
(2) When creating a strategy, you need to read the [Risk Reminder] in detail, and then click [I‘ve read and agree to all the above] before creating the strategy.
Step 3: Select "Auto" or "Manual" mode according to your needs.
1. Auto Mode
Auto mode: The recommended strategy parameters are automatically generated based on technical analysis of market prices, beginner friendly if you're using grid strategies for the first time.
Select the market, time period, and the amount to invest according to the needs, and complete the creation of the grid strategy.
Note: The recommended parameters do not constitute any financial or investment advice from CoinEx. Please evaluate whether to adopt the recommended strategy parameters at your own risk.
2. Manual Mode
Manual mode: You can set the parameters by yourself based on the judgment of the market, which is suitable for traders who are familiar with grid strategies.
Traders can select the market according to their needs, set the price range, grid numbers, investment mode, amount to invest, tp/sl triggers, and click [Create] - [Confirm] to successfully create a spot grid strategy.
Step 4: After creating, the system will execute the spot grid strategy according to the pre-set parameters, and you can view the strategy details from [My Strategy].
Step 5: After entering [Strategy Details], in addition to viewing the detailed info, you can also select [End Strategy], [Edit TP/SL] as needed.
Step 6: After the grid is successfully created, it can be ended at any time as you want. When terminating the grid, you can check the investment balance of the two assets held in the strategy position, which can be refunded by any of the following ways:
1. Return both assets to Spot account
2. Convert all to pricing coin (such as USDT) at the best price in the market
3. Convert all to base coin (such as BTC) at the best price in the market
Click [Confirm] to end the strategy, all pending orders will be cancelled, and the assets will be refunded to Spot account accordingly.
FAQ about Spot Grid
Q1: What is an arithmetic grid?
Both CoinEx's auto and manual modes in Spot Grid strategy use an arithmetic grid pattern.
An arithmetic grid divides the price range between the lower and upper limits of the grid into equal intervals, with the price difference between each interval being the same.
The equation for the price difference between adjacent grids is: Spread = (Highest Price - Lowest Price) / Number of Grids
Price_1 = Lowest Price
Price_2 = Lowest Price + Spread
Price_3 = Lowest Price + Spread * 2
Price_n = Lowest Price + Spread * (n-1)
Q2: What kind of markets are suitable for creating grids?
For spot grid trading, it is recommended to select markets with high trading volume, large volatility range, and high frequency.
Q3: How are revenues settled when spot grid strategy ends?
When the grid strategy ends, all pending orders will be canceled, and the grid revenue will be settled at the current market price.
Q4: What is a broken grid?
A broken grid occurs when the market price breaks through the price range of the grid (i.e. Exceeds the highest price or falls below the lowest price) during a one-sided market trend. When this happens, the system will pause order submission, while pending orders will remain open. At this point, you can manually cancel orders or wait for the market to return to the grid price range. When the market price once again falls within the price range, the grid strategy will be resumed.
Q5: How are fees calculated for spot grids?
The trading fee for spot grids is calculated in the same way as those for spot trading. For more details, please refer to "Spot & Margin Fees"
Q6: Is it possible that the trading fee may exceed the grid revenues?
Absolutely not. Only when the grid revenue exceeds the trading fee can a spot grid strategy be created. Therefore, this situation will not occur.
Q7: Will the orders in my spot grids be executed smoothly during extreme one-sided market trends?
It depends on market depth and order value. During extreme market trends, the orders in your spot grid may not be executed or may be partially executed. To ensure the continuity of grid strategy, the system has a mechanism for order submission, where the grid will place orders again according to the standard amount, until it is filled.
Q8: What is "Advanced Setting" when creating a grid?
Advanced settings include optional triggers for grid opening and TP/SL settings, where you can customize your own grids. The specific concepts are as follows:
Grid Trigger Price: Only when the market price reaches the pre-set trigger opening price will the grid strategy start to run. This price cannot be changed once the grid is working.
Stop-Loss Price: When the market price reaches the pre-set stop-loss price, the system will automatically sell all base coins of this position, to stop and reduce the loss in time.
Take-Profit Price: When the market price reaches the pre-set take-profit price, the system will automatically sell all base coins of this position, to take and secure the revenue in time.
As a trading tool, Strategic Trading does not constitute financial or investment advice from CoinEx. Users can adjust, suspend or end the strategy at any time according to the current market trends, and apply the use of strategy trading voluntarily, which may fail to obtain corresponding strategy benefits, due to the unreasonable setting of strategy parameters or extreme market fluctuations.
All strategies are determined by the users themselves and at their own risk, and CoinEx will not be responsible for any loss caused by the use of this service. Please reasonably evaluate your risk tolerance and make rational decisions, after carefully reading the strategy trading guide.