1.What is Margin Grid?
The margin grid is an upgraded version of the Spot Grid. It combines the Spot grid and margin trading. By borrowing margin, the trading power of invested principal will be amplified, leading to potentially higher returns. With Margin Grid, users can go long or short to obtain profits in medium—to long-term volatile markets.
A bot will start working for you after you set parameters such as price range and number of grids. Once started, the bot will divide your investment into several parts, buying in stages when prices are declining and selling in stages when prices are rising, continuously taking advantage of market fluctuations to achieve gains through buying low and selling high.
2.Explanation of Margin Grid
Advantages:
In volatile markets, you can prioritize the Margin Grid bot.
1.Greater Capital Efficiency: The bot amplifies trading equity through leverage, thus increasing users’ capital utilization.
2.Suitable for Multiple Market Conditions: The long grid bot is suitable for volatile and rising markets, while the short grid bot is suitable for volatile and falling markets.
3.Trade in spot Market: Unlike perpetual futures markets, spot markets have better liquidity, thus the bot’s return is less affected by slippage.
3.Explanation of Margin Grid Parameters
Lower limit price: the lowest purchase price. If the latest market price is lower than this price, the bot won’t buy. At the same time, no selling order will be executed at the lower limit price.
Upper limit price: the highest selling price. If the latest market price is higher than this price, the bot won’t sell. At the same time, no buying order will be executed at the upper limit price.
Number of grids: The number of execution grids is limited to 2 to 200.
Arithmetic Sequence: The price spacing of each grid is the same, and its calculation method is (upper limit price – lower limit price) / (number of grids – 1).
Geometric Sequence: The price spacing of each grid is equal-proportion, and its calculation method is:
Base currency buy/sell qty per grid: The quantity of the selected currency for buying and selling in each grid.
Crement per grid: Quantity Increasing is off by default. When turned on, you can choose to increase the buying and selling quantity of each grid according to quantity or proportion, as shown in the figure
For example, the base buy/sell quantity per grid = 1, and the increment per grid = 2, which means that the first grid will buy and sell 1 BTC, the second grid will buy and sell 1+2=3 = BTC, and the third grid will buy 1+2+2=5 and so on.
Leverage multiple: Select the leverage multiple. Increasing the leverage ratio can reduce the minimum investment amount, allowing risks and returns to coexist.
Reference daily interest rate: serves as the reference daily interest rate for borrowing funds from the leverage grid.
Stop-loss price: When it goes long, the stop loss is triggered when the latest market price is less than or equal to this price, which must be less than the lower limit price. When it goes short, the stop loss is triggered when the latest market price is greater than or equal to this price, which must be greater than the upper limit price.
Take-profit price: when it goes long, the take-profit is triggered when the latest market price is greater than or equal to this price, which must be greater than the upper limit price. When it goes short, the take-profit is triggered when the latest market price is less than or equal to this price and must be less than the lower limit price.
Trigger Price: when it goes long, the grid won’t start running until the latest market price is less than or equal to the trigger price. The trigger price must be less than the latest price and between the lowest price and the highest price of the grid range. When it goes short, the grid won’t start running until the latest market price is more than or equal to the trigger price. The trigger price needs to be greater than the latest price and between the lowest price and the highest price of the grid range.
Settlement (optional): Sell the currency held when terminated: When enabled, the currency held will be sold at the market price and exchanged for USDT when the strategy ends
4.How to Create/Terminate the Margin Grid?
4.1 How to Create a Margin Grid?
There are three modes:
1.Smart Mode: beginners can directly use the 7-day/30-day/180-day backtest bot in the recommended list. It is based on historical market conditions and trends, and combines parameter configurations derived from smart algorithms;
2.Copying Mode: if smart mode fails to meet your needs, you can screen out high-quality signallers in the recommended list and copy the bot;
3.Customizing Mode: you can set parameter conditions based on your own judgment on the volatile market, and confirm the investment amount to create a margin grid bot.
Creation Process:
Web:
Bots - Bot pool - Margin Grid - Select Trading Pairs - Configure Parameters - Click on “Create”.
APP:
Bots homepage - Grid Bots - Margin Grid - Select trading pairs - Configure parameters - Click on “Create”.
4.2 How to Terminate a Margin Grid Bot?
You can stop the margin grid bot at any time. Please note:
1.The crypto market is highly volatile and bots might not always adapt quickly to sudden market changes. If a Margin Grid bot does not match the current market conditions, it should be terminated timely to mitigate potential loss.
2.A Margin Grid bot is not deemed to work as a day trading bot. Instead, it requires a relatively long period of time to achieve its goal.
3.Similar to the Spot Grid, a long/short Margin Grid bot typically buys low and sells high. Thus, its profit curve tends to decline first and rise later. Loss at the beginning is, therefore, theoretically considered normal.
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