Spot Grid Bot uses a grid bot that’s designed to buy low and sell high automatically to maximize profits in a volatile 24/7 crypto market.
Grid bots are automated trading strategies designed to place buy and sell orders at predetermined intervals within a predefined price range. They’re designed to capitalize on price fluctuations and perform best in volatile markets.
How Do BlockFin Grid Bots Work?
You can set a series of buy and sell orders in either price direction, creating a trading grid of orders waiting to be triggered. When the Spot price hits your preset target, a buy order will be executed, and a sell order will be placed above on the next grid. When the price rises again to the next grid, the sell order will be executed, allowing you to profit from the price difference.
Example
Suppose Trader A creates a Spot Grid Bot strategy based on the following parameters:
- Spot pair: BTC/USDT
- Market price: 54,000 USDT
- Upper price: 65,000 USDT
- Lower price: 45,000 USDT
- Number of grids: 5
- Intervals: 4,000
- Total investment: 23,610 USDT
The system will calculate the actual amount of base token required to place an order, and then automatically buy the corresponding base token needed for the Spot Grid Bot strategy by placing market orders.
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When the Spot Grid Bot strategy is successfully activated, the orders will be placed as follows:
Price (USDT) | Order Type |
65,000 | Sell |
61,000 | Sell |
57,000 | No initial orders will be placed |
Market price: 54,000 USDT | |
53,000 | Buy |
49,000 | Buy |
45,000 | Buy |
Scenario One: In a Volatile Market
When the BTC price hits 53,000 USDT, the buy order will be executed, and the sell order at 57,000 USDT will be placed above the next grid. When the price rises to 57,000 USDT, the sell order will be executed, and a buy order at 53,000 USDT will be placed — that is, a grid trade is now completed and profits are made from the price difference.
Scenario Two: In a One-Sided Market
When the BTC price rises to 57,000 USDT, no buy/sell orders will be triggered. In a one-sided market, if the price rises to 61,000 USDT, this will trigger a sell order and place a buy order at 57,000 USDT.
If the price continues to rise and reaches 65,000 USDT, a sell order will be placed at 65,000 USDT, and a buy order placed at 61,000 USDT.
Your grid bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 65,000 USDT or falls below 45,000 USDT, the strategy will be suspended and no new orders will be placed by the grid bot.
If the market price moves outside the price range, you can choose either to close the Spot Grid Bot strategy to get the most out of your funds, or wait for the price to return to the range you’ve set, at which time the strategy will resume.