Frequent ask questions
1. What is Spot Grid Trading?
Spot Grid trading is a quantitative trading strategy that divides the assets invested by the user into several equal parts. It automatically places orders at various price levels in the trading market according to the parameters set by the program to regularly buy low and sell high, and continuously obtain the price difference in the volatile market.
2. Which markets are suitable for spot grid trading?
Spot grid trading is appropriate when the token price changes in a predictable range. Grid trading will continue to benefit by selling high and low inside the price range.
3. Will transaction fees for grid trading outweigh the profits?
No. BigONE's grid transaction will only open an order when the grid trading profit is greater than the handling fee, and there will be no phenomenon that the handling fee exceeds the grid trading income.
4. How to choose if I should use an "AI" strategy or a "custom" strategy?
New users should use the "AI" strategy, while more experienced users can select the "Custom" Strategy to customize strategy parameters to their specific needs.
5. How do I view grid trading income?
You can view the grid trading income in "BigONE Quantitative Strategy - Strategies in Operation - Details", as shown below:
6. What is the transaction fee for unlimited grid trading?
The current transaction fee for unlimited grid trading is 0.1%, regardless of membership level.
7. The difference between equal difference grid and proportional grid.
The price difference (price interval) of each grid in the equal difference grid is fixed, which is suitable for the volatile market within the range of small cells.
The price interval between each grid in the proportional grid is a fixed ratio of ups and downs, which is suitable for volatile markets within a large range.
8. How are the spreads (price interval) calculated for equal and proportional grids?
The spread of each pending order in the equal difference grid = (highest price - lowest price) / grid quantity
The price interval of each pending order in the proportional grid = ((highest price/lowest price)^(1/number of grids)-1)*100%
9. Is there a difference between single currency and dual currency input?
Whether it is a single-currency investment or a dual-currency investment, the strategy for grid operation is the same. The only difference is that in "Custom Mode - Advanced Settings", when a single currency is put into quote coins, the "Trigger Price" can be set. When the latest market price is less than or equal to the trigger price, the grid will start to run the currency exchange pending order. Reduce costs and gain more profit margins. For single-currency investment base currency and dual-currency investment, you only need to set "Take Profit Price" and "Stop Loss Price" in "Custom Mode - Advanced Settings", but not "Trigger Price".
The base coin is the coin on the left side of the transaction pair, and the quote coin is the coin on the right side of the transaction pair. Take BTC/USDT as an example: the base coin is BTC, and the quote coin is USDT.
10. What is the relationship between profit to be withdrawn, profit is withdrawn, and total revenue?
The profit to be withdrawn is the profit generated by grid trading on that day.
The withdrawn profit is at 00:00 every day, and the system will automatically withdraw the profit to be withdrawn to the user's spot account, which is the sum of all withdrawn profits.
Total income = profit to be withdrawn + withdrawn profit + floating profit and loss.
11. Will the grid stops automatically when the market price goes out of the price range?
No, the grid will not automatically stop when the market price surpasses the price range. The grid strategy will continue to run once the market price returns to the price range.
12. After manually stopping grid trading, will the system automatically sell the base token?
After manually stopping grid trading, the system will prompt the user to sell or not sell the base currency, and the user can decide whether to sell or not sell based on their personal needs.
13. When the take profit and stop loss price are triggered and the grid stops automatically, will the system automatically sell the base currency?
The system will automatically sell the base token.
14. Does the grid fund invested by a single user need to be the same as the grid fund invested by a single user?
No, the grid funds invested by the copying user only need to meet the minimum investment amount.
15. If the grid strategy is stopped manually by the single user or the take profit/stop loss, will the grid of the copy user continue to run?
No.
16. If a single user adjusts the price range or take profit/stop-loss price, will the copy user's strategy be changed along with it?
There are two situations after the single user adjusts the price range:
1) If the investment of the copy user can meet the normal operation of the adjusted grid strategy, the copy user's strategy will be adjusted along with it;
2) If the investment of the copying user can not meet the normal operation of the adjusted grid strategy, the copying will be stopped, and the grid will also stop running.
17. Can a copy user stop copying at any time?
Yes.
18. What is the difference between "manually stopped", "automatically stopped", "stopped with profit", "stopped with stop loss" and "stopped with risk control" in the strategy status?
Manually stopped means: the user manually stops the grid.
Automatically stopped means: after a single user modifies the strategy parameters, the investment of the copy user cannot meet the normal operation of the adjusted grid strategy, and the system will automatically stop the copy user's grid.
Take profit stop means: trigger the stop of the take profit price.
Stopped stop means: Triggered stop loss price stop.
The risk control has been stopped means: triggering the risk control stop.
19. When the copy user cannot follow and the grid stops automatically, will the system sell the Base coin or keep two coins?
There are two cases:
1）When the user with the order stops the order or the user with the order adjusts the price range and the copy user cannot continue to follow, no matter whether the user with the order chooses to sell or not to sell the Base currency, the stop rule for the copying user is: single currency Base When the grid of coin/dual currency input is automatically stopped, two coins will be retained. If the single-currency Quote coin is input, the Base coin will be sold.
2）When the grid with a single user stops the profit and stop loss, the grid of the copy user will also stop the profit and stop loss. At this time, the stop rule for the copy user is: sell Base coins and stop.
Explanation
Price range: the range between the lowest price of grid pending orders and the highest price of grid pending orders.
The number of pending orders: The number of grid pending orders.
Equal difference grid: Each grid's spread (price spacing) is fixed. If 1 BTC = 30,000 USDT and a buy order is placed for every 200 USDT price drop, the first bid price is 29,800 USDT (30,000 USDT - 200 USDT), the second bid price is 29,600 USDT (29,800 USDT - 200USDT), and so on.
Proportional grid: The price spacing between each grid is a predetermined ratio of ups and downs in a proportional grid. For example, if 1 BTC = 30,000 USDT and a buy order is placed for every 10% decline in price, the first bid price is 27,000 USDT (30,000 USDT*(1-10%)), the second bid price is 24,300 USDT (30,000 USDT*(1-10%)), and so on.
Trigger price: The grid will not be filled immediately after specifying the trigger price to construct a grid strategy and placing an order; instead, the grid strategy will begin when the token price hits the trigger price.
Take Profit Price: When the token price rises to the Take Profit price, the grid automatically stops running, cancels the current pending order, and sells the base token.
Stop Loss Price: When the token price falls to the stop-loss price, the grid automatically stops running, cancels the current pending order, and sells the base token.
Arbitrage times: Each completed low-price buy and corresponding high-price sell is an arbitrage, and the number of arbitrage is the total number of completed arbitrage.
Estimated profit margin for a single grid: revenue of a single grid/investment of a single grid * 100%.
Floating profit and loss: The floating change in the value of the current position asset.
Detailed explanation of the operation process of grid trading strategy
Take BigONE spot BTC/USDT trading pair as an example, assuming the current 1 BTC = 40,000 USDT,
【Example 1】Single currency quote coin input
Grid parameters
- Equal difference grid
- Investment currency - USDT
- Minimum price - 30000
- Maximum price - 60000
- Number of grids - 10
- Investment amount - 500 USDT
Grid run
- As the only quote coins are put in, the buy order will be placed first.
- Grid spread = (highest price - lowest price)/grid number = (60000-30000)/10 = 3,000 USDT
- Single grid trading volume = invested capital / (∑ grid pending order price) = 500/(30000+33000+36000+39000+42000+45000+48000+51000+54000+57000) =0.001149425287
- The system starts placing limit buy orders directly. The details of the pending orders are as follows:
- Start selling orders from 60000: 60000, 57000, 54000, 51000, 48000, 45000
- The final actual pending order is:
Buy order: 30000, 33000, 36000, 39000
Sell order: 45000, 48000, 51000, 54000, 57000, 60000
The price fluctuates to 45000, and after the sell order 45000 is filled, a buy order is placed at the 42000 position.
The price fluctuates to 48000, and after the sell order 48000 is filled, a buy order is placed at the 45000 position.
The price returned to 45000, and after the buy order of 45000 was filled, a sell order was placed at the 48000 position.
…
When the price fluctuates to 20000, all pending orders become sell orders.
【Example 2】 Single-currency base coin input
Grid parameters
- Equal difference grid
- Investment currency - BTC
- Minimum price - 30000
- Maximum price - 60000
- Number of grids - 10
- Investment amount - 1 BTC
Grid run
- As only base coins are invested, the sell order will be given priority.
- The trading volume of a single grid (the decimal place of the minimum order amount is directly intercepted without rounding): invested capital/grid quantity = 1/10 = 0.1
- The system starts placing limit sell orders directly. The details of the pending orders are as follows:
- Place a buy order from 30000: 30000, 33000, 36000
- The final actual pending order is
Buy order: 30000, 33000, 36000
Sell order: 42000, 45000, 48000, 51000, 54000, 57000, 60000
The price fluctuates to 36000. After the buy order of 36000 is filled, a sell order is placed at the 39000 position.
The price fluctuates to 39000, and after the sell order 39000 is filled, a buy order is placed at the 36000 position.
The price fluctuates to 42,000, and after the sell order of 42,000 is filled, a buy order is placed at the position of 39,000.
…
When the price fluctuates to 61000, all pending orders become buy orders;
【Example 3】Dual currency input
Grid parameters
- Equal difference grid
- Investment currency - USDT + BTC
- Minimum price - 30000
- Maximum price - 60000
- Number of grids - 10
- Investment Amount - 100 USDT + 0.001 BTC
Grid run
- As you buy both quote and base coins at the same time, and 100 USDT is greater than 0.001 BTC, the single grid trading volume is higher (directly intercepted by the decimal place of the minimum order amount without rounding)
- The system starts to exchange tokens to place limit orders. The details of the pending orders are as follows:
*The 51000 limit sell order represents a small portion of the remaining funds after the BTC pending sell order was placed. The order will not be placed at this price if there are no remaining orders.
- Place sell orders separately: 45000, 48000, 51000
- The final actual pending order is
-
Buy order: 30000, 33000, 36000, 39000
Sell order: 45000, 48000, 51000, 54000, 57000, 60000
The price fluctuates to 45000, and after the sell order 45000 is filled, a buy order is placed at the 42000 position.
The price fluctuates to 48000, and after the sell order 48000 is filled, a buy order is placed at the 45000 position.
The price fluctuates to 45,000, and after the buy order of 45,000 is filled, a sell order is placed at the 48,000 position.
…
When the price fluctuates to 29000, all pending orders become sell orders.
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