Spot grid parameters explained

In spot grid trading, your parameter settings directly impact your final profit. Understanding the key terms related to spot grid trading and the meaning of each parameter can help users earn greater profit.

Spot grid glossary

1. Spot grid: An automated bot that buys low and sells high within a specific price range. If the price fluctuates within this range, users can profit from market movements. This bot is ideal for oscillating markets, and Bitget now supports both normal and reverse grids.

2. Normal grid: Ideal for oscillating markets, the bot automatically buys low and sells high.

3. Reverse grid: Ideal for oscillating markets, the bot automatically sells high and buys low.

4. AI: This mode utilizes the grid bot parameters recommended by the system. The recommended parameters are generated using a smart algorithm that calculates the most suitable parameters for the current market, based on backtesting data from the past 7 days.

5. Manual: Users manually set the parameters and trigger conditions based on their assessment of the market’s oscillating range.

Order parameters

1. Highest price: The upper limit of the price range for grid trading. No orders will be placed when the market price is higher than the highest price.

2. Lowest price: The lower limit of the price range for grid trading. No orders will be placed when the market price is lower than the lowest price.

3. Price range: It is defined by the highest and lowest price set by the user. If the price fluctuates within the range, the bot will help users perform arbitrage by buying low and selling high.

4. Number of grids: The number of grids into which the price range is divided for placing orders.

5. Trigger price: Grid trading will be enabled when the market price reaches the set trigger price.

6. TP/SL price: The bot will be terminated when the market price reaches the set TP or SL price.

7. Initial price limit: This parameter sets a range to control how much the order price can deviate from the entry price. In a highly volatile market, the final transaction price often differs from the order price. Using this parameter helps you manage slippage more effectively.

8. Arithmetic mode: Each grid has an equal price difference (e.g., 1, 2, 3, 4).

9. Geometric mode: Each grid has an equal price difference ratio (e.g., 1, 2, 4, 8).

10. Profit per grid: The price difference of a single grid * min (the amount bought and the amount sold in a single grid interval).

11. Grid profit: The total profit of each grid within the grid range.

12. Available: The funds available in the account for grid trading.

13. Investment: The funds invested when the grid bot is activated.

14. Sell at termination: When the normal spot grid is terminated, the coins bought by the bot will be sold for stablecoins.

15. Buy at termination: When the reverse spot grid is terminated, the stablecoins sold by the strategy will be used to buy coins.

PnL parameters

1. Total profit: The total profit since the grid bot started running. Total profit = grid profit + floating PnL

2. Grid profit: The realized PnL generated from all grid trading orders minus the transaction fees.

3. Floating PnL: The unrealized PnL that results from the price changes of the base currency in the current trading pair. It is calculated as the difference between the current price of the base currency and the average entry price. Floating PnL = (current price − average entry price) x current position

4. APY = total profit ÷ initial margin ÷ days running x 365