- What is Unlimited Grid?
Unlimited Grid is a quantitative investment strategy. Like grid trading, it is an investment tool in volatile markets. Different from grid trading, Unlimited Grid is a special proportional grid trading strategy. There is no price upper limit but only a lower price limit, which solves the situation where the price breaks the upper limit of the grid and causes users to go empty. In the volatile rise, Unlimited Grid will only sell the "profit" after asset appreciation to ensure that users hold assets of the same value as the initial value.
Take BTC/USDT as an example, assuming that the unlimited grid is opened when 1 BTC = 10,000 USDT, and the single grid profit rate is set to 1%:
When the price rises to the first grid, which is 1 BTC = 10,100 USDT, then 100 USDT worth of BTC is sold. Although the number of BTC held has decreased, the total value converted into USDT remains unchanged, and 10,000 USDT is still held.
When the price of BTC falls, buy the corresponding amount of BTC to maintain the total value of BTC at 10,000 USDT.
Therefore, the unlimited grid is very suitable for the "slow bull" market. In the volatile price rise, you will always hold fixed-value assets in your hands and will not sell out all the tokens.
Unlimited grid can only do equal ratio grids and not equal difference grids?
Yes, the unlimited grid is a special proportional grid trading strategy.
What is maintaining market value?Maintaining market value means that when the market price is higher than the lower price limit, the strategy will always keep the value of the Base currency in the hands essentially unchanged.
Unlimited grid only has a lower price limit, no upper limit. It will not be sold out no matter how much the price goes up.
It will not usually sold out. However, if the remaining base coins cannot meet the quantity precision of the trading pair, or cannot meet the minimum order amount, the sell order will not be placed.
Will the value of the assets in hand remain constant, regardless of how many times the base coin has increased?
During the fluctuation and rise, the Base coin will not necessarily be sold one after the other according to the price of the pending sell order. When the price rises but does not reach the price of the last pending sell order, the Base coin will not be sold. As a result, at this time, hold the Some assets are worth more in USDT than the initial investment, resulting in a floating profit. Profits may also be withdrawn.
What is the transaction fee for unlimited grid trading?
The current transaction fee for unlimited grid trading is 0.1%, regardless of membership level.
If the BTC price rises from 10,000 USDT to 20,000 USDT, and then falls back to 10,000 USDT, will the asset change, will there be profit or loss?
If the grid has placed a sell order when BTC rises to 20,000, and the sell order has been filled.
Example if the user places an order when 1 BTC = 10,000 USDT
Scenario 1: From 10,000 to 20,000, the grid did not place any sell orders during the period, then when it falls back to 10,000, the value of the holding assets remains unchanged, and there is no profit or loss.
Scenario 2: From 10,000 to 20,000, during which the grid pending sell order is filled, then when it falls back to 10,000, the asset value of the position remains unchanged, but there is profit and no loss.
If the current price of BTC is 20,000 USDT, the lower limit is 10,000 USDT, and only USDT is invested, what is the exchange amount and the amount of USDT left when the grid is opened?
The number of coins exchanged and the amount of USDT left are related to the set grid parameters. The higher the profit rate of a single grid, the more BTC needs to be exchanged and the less USDT left.
If the current price of BTC is 20,000 USDT, the lower price limit is set to 10,000 USDT, and only BTC is invested, should we sell a portion of BTC at the price of 10,000 and calculate the percentage increase, or start selling at the current price of 20,000?
The first step is to place a BTC sell order with a limit price of 20,000 and sell a portion of BTC at 20,000.
Next, place sell orders sequentially at prices above 20,000.
Place buy orders in sequence between 10,000 - 20,000.
No pending orders below 10,000.
- For example, the current price of BTC is 20,000 USDT, and the lower limit is set at 10,000 USDT. The initial investment of BTC + USDT is to set a percentage from the price of 20,000 to start selling, and USDT has not been used. If the price is below 20,000, and the USDT is used to buy in sequence, is the invested BTC also unused?
This is related to the investment ratio of BTC and USDT. BTC or USDT will not be unused at all times. As long as the currency exchange is completed, half of the Base coins are used for pending sell orders, and almost all of the Quote coins are used for pending buy orders.
- When do you use unlimited grid?
Wish to hold digital assets equivalent to the initial value in the process of rising volatility.
Hold mainstream currencies for a long time or be optimistic about the future growth of a certain currency, such as BTC, ETH, etc.
In the process of trading always continue to take profit in order to avoid losses.
A grid ran to the bull market.