Frequently Asked Questions

Find quick answers to common questions about grid trading bots.

General Questions

What is grid trading?

Grid trading is an automated strategy that profits from market volatility by placing multiple buy and sell orders at predetermined price intervals. The bot buys low and sells high repeatedly as the market oscillates within a defined price range.

Simple explanation:

Imagine a fishing net (grid) in the ocean (market):
- Each vertical string is a price level
- Fish (profits) get caught as price moves through the net
- More movement = more fish caught

Learn more about grid trading concepts →

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Is grid trading profitable?

Grid trading can be profitable in the right market conditions, but it's not guaranteed. Profitability depends on:

Favorable Conditions:

• Ranging/sideways markets (best)
• Moderate volatility
• Proper configuration
• Good fee management

Expected Returns:

• Conservative: 10-30% APR
• Moderate: 30-60% APR
• Aggressive: 60%+ APR (with higher risk)

Reality: Grid trading is not a get-rich-quick scheme. It requires patience, proper setup, and ongoing management.

warning

Past performance does not guarantee future results. You can lose money in trending markets or with poor configuration.

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What is the minimum investment required?

Technical Minimum: Depends on the exchange and trading pair, but generally:

• $100-$500 for most major pairs
• Must meet exchange minimum order sizes
• Consider fees (need profit margin)

Practical Minimum:

• $500-$1,000 recommended for beginners
• Allows for 10-20 grids with meaningful order sizes
• Provides buffer for fees
• Reduces impact of minimum order requirements

Example:

$500 investment, 10 grids:
- ~$50 per order
- Meets most exchange minimums
- Allows for reasonable profit capture

$100 investment, 10 grids:
- ~$10 per order
- May be below minimums
- Fees eat larger % of profit
- Not recommended

Learn about capital allocation →

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How many grid bots can I run simultaneously?

Technical Limit: No platform limit

Practical Recommendations:

Beginners: 1-3 bots

• Focus on learning
• Easier to monitor
• Less capital at risk

Intermediate: 3-5 bots

• Some experience gained
• Can handle complexity
• Good diversification

Advanced: 5-10+ bots

• Experienced traders
• Active monitoring
• Sophisticated risk management

Considerations:

Too many bots:
❌ Difficult to monitor
❌ Capital spread too thin
❌ Complexity increases errors
❌ Time-intensive management

Too few bots:
❌ Lack of diversification
❌ Over-concentration risk
❌ Missing opportunities

Sweet spot: 3-5 well-managed bots

Learn about multi-bot management →

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Can I modify a running bot?

Short answer: No, not directly.

To modify a running bot:

1. Stop the bot (cancels all orders)
2. Edit the configuration
3. Restart the bot with new settings

What gets reset:

• All orders cancelled
• Grid recalculated
• New orders placed
• Order history preserved

Why this limitation?

Changing parameters while running would:
- Create inconsistent grid
- Orphan existing orders
- Cause calculation errors
- Risk position mismatches

Best practice:

• Plan configuration carefully before starting
• Test in demo mode first
• Only edit during low-volatility periods
• Accept current positions before restarting

Learn about bot management →

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What happens to my positions if I stop the bot?

When you stop a bot:

Orders:

• ✓ All pending orders are cancelled
• ✓ Removed from exchange immediately
• ✓ No longer waiting to fill

Positions:

• ✓ You keep any crypto you bought
• ✓ You keep any cash from sells
• ✓ Positions are NOT automatically closed
• ✓ Remain in your exchange account

Example:

Before stopping:
- 0.15 BTC (bought through bot)
- 5,000 USDT (remaining from sells)
- Pending: 5 buy orders, 3 sell orders

After stopping:
- 0.15 BTC (still yours)
- 5,000 USDT (still yours)
- Pending: 0 orders (all cancelled)

You must manually sell/manage positions if desired

Options after stopping:

1. Hold positions (wait for favorable price)
2. Manually sell on exchange
3. Restart bot (will work with current positions)
4. Transfer to cold storage

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Do I need to keep my browser open?

No! Grid bots run on the platform's servers, not in your browser.

What this means:

• ✓ Close your browser anytime
• ✓ Shut down your computer
• ✓ Bot continues trading 24/7
• ✓ Orders remain active on exchange
• ✓ Trades execute automatically

You only need browser to:

• Monitor performance
• Adjust settings
• Stop/start bots
• Review results

Example:

6:00 PM: Start grid bot
6:05 PM: Close laptop, go to dinner
8:00 PM: Sleep
2:00 AM: Bot executes 5 trades while you sleep
8:00 AM: Check results, see profits accumulated

tip

Set up email or mobile alerts for important events so you don't need to constantly check.

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Strategy Questions

Which is better - Arithmetic or Geometric grid?

Arithmetic (Recommended for Most):

Use when:

• Price range is moderate (±30% or less)
• You're new to grid trading
• Trading stable pairs
• Want simple, predictable behavior

How it works:

Equal dollar spacing between grids
Example: $40k, $42k, $44k, $46k, $48k, $50k
Spacing: Constant $2,000

Pros:

• ✓ Easy to understand
• ✓ Predictable profit per grid
• ✓ Works for most scenarios

Cons:

• ❌ Less optimal for very wide ranges

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Geometric (Advanced Use Cases):

Use when:

• Price range is very wide (±50%+)
• Trading volatile altcoins
• Want percentage-based consistency
• Experienced with grid trading

How it works:

Equal percentage spacing between grids
Example: $40k, $42.1k, $44.3k, $46.6k, $49k, $51.6k
Spacing: Constant ~5.3% increase

Pros:

• ✓ Better for wide ranges
• ✓ Consistent % gains
• ✓ More grids at lower prices (good for accumulation)

Cons:

• ❌ More complex
• ❌ Variable dollar profits
• ❌ Requires more understanding

Recommendation:

Start with Arithmetic
Switch to Geometric only if:
- Range > ±50% AND
- You understand the differences AND
- You've tested in demo mode

Learn more about strategy types →

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How do I know if my grid range is good?

A good grid range captures regular price movement without being too wide or narrow.

Technical Analysis Approach:

1. Identify Support and Resistance

Use trading charts to find:
Support: Price level where buying pressure increases
Resistance: Price level where selling pressure increases

Set range slightly inside these levels:
Support: $42,000
Resistance: $58,000

Grid range: $43,000 - $57,000
(Leave buffer for wicks and volatility)

2. Check Historical Volatility

Review last 30-90 days:
- What's the typical price range?
- Where does price spend most time?
- Are there clear boundaries?

BTC example (30 days):
Low: $44,000
High: $56,000
Most time: $48k-$52k

Good range: $45,000 - $55,000

3. Use Percentage Ranges

Quick guidelines:

Major pairs (BTC, ETH): ±20-25%
Mid-cap alts: ±25-30%
Small-cap alts: ±30-40%
Stablecoins: ±2-5%

Current BTC: $50,000
Range: ±25% = $37,500 - $62,500

Warning Signs:

Too Narrow:

🚩 Price frequently exits range
🚩 All orders fill quickly one direction
🚩 Bot stops working soon after start

Too Wide:

🚩 Outer orders never fill
🚩 Low fill rate (<20%)
🚩 Capital sits idle
🚩 Opportunity cost vs holding

Just Right:

✓ Price oscillates within range
✓ Regular order fills (30-50%)
✓ Both buys and sells executing
✓ Profits accumulating steadily

Testing:

1. Set initial range based on analysis
2. Run in demo mode for 1 week
3. Check fill rate and price behavior
4. Adjust if needed
5. Deploy in live mode

Learn more about range selection →

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Should I use trailing up/down?

Short answer: Generally no, especially for beginners.

Why trailing seems appealing:

Idea: Automatically follow trends
- Price trends up → Grid shifts up
- Capture profits at higher levels
- Don't miss the rally

Why trailing often fails in grid trading:

Reality: Grid trading profits from RANGING markets
- Trends are exactly when grids underperform
- Trailing buys at higher prices (risk)
- Defeats the "buy low, sell high" principle
- Adds complexity and risk

When trailing might work:

Trailing Up (Rare Use Case):

Market condition: Strong, sustained bull market
Your position: Want to ride trend AND capture oscillations
Risk tolerance: High
Experience level: Advanced

Example:
BTC in clear uptrend $40k → $60k over months
Trailing grid captures profits along the way
But: Often better to just HODL in strong trends

Trailing Down (Very Risky):

Market condition: Bear market
Risk: Catching falling knives (buying as price falls)
Result: Accumulate large position at declining prices

Almost never recommended
Exception: Dollar-cost averaging strategy with strong conviction

Recommendation:

Beginner: NEVER use trailing
Intermediate: Rarely, with caution
Advanced: Selectively, in specific market conditions

Better strategy:
- Start grid in ranging market
- If trend emerges, STOP bot and take profit
- Start new grid OR switch to trend-following strategy

Learn about trailing features →

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What's a good profit per grid percentage?

The optimal profit per grid depends on fees, volatility, and trading frequency.

Formula:

Minimum Profit Per Grid > (Trading Fees × 2)

With 0.1% fee:
Minimum: 0.2% (break even)
Recommended: 0.5%+ (profitable after fees)

Guidelines by Fee Tier:

High Fees (0.2% per trade):

Round-trip fee: 0.4%
Minimum profit: 0.5-0.8%
Recommended: 1-2%

Example: Binance basic tier

Medium Fees (0.1% per trade):

Round-trip fee: 0.2%
Minimum profit: 0.3-0.5%
Recommended: 0.7-1.5%

Example: Binance with BNB discount

Low Fees (0.05% per trade):

Round-trip fee: 0.1%
Minimum profit: 0.2-0.3%
Recommended: 0.5-1%

Example: Binance VIP tiers, maker rebates

Volatility Adjustment:

Low Volatility Pairs:

Stablecoins, established pairs
Daily movement: <5%
Profit per grid: 0.3-0.7%
More grids, smaller profits, higher frequency

Medium Volatility Pairs:

BTC/USDT, ETH/USDT
Daily movement: 5-15%
Profit per grid: 0.7-1.5%
Balanced approach

High Volatility Pairs:

Altcoins, smaller caps
Daily movement: >15%
Profit per grid: 1.5-3%+
Fewer grids, larger profits

Example Calculation:

BTC/USDT Grid:
Exchange fee: 0.1% (0.2% round-trip)
Price range: $45,000 - $55,000
Grid count: 20
Spacing: $500 per grid

Profit per grid calculation:
$500 / $50,000 avg = 1% spacing

After fees: 1% - 0.2% = 0.8% net profit

✓ Good! Well above fees
✓ Trades frequently enough
✓ Sustainable profit per cycle

Auto vs Manual:

Platform default: Usually optimized for your range
- Automatically calculated
- Considers grid spacing
- Generally good starting point

Manual override:
- For advanced users
- Testing specific theories
- Optimizing for conditions

Recommendation:

Beginners: Use auto-calculated
Intermediate: 0.7-1.5% for major pairs
Advanced: Optimize based on backtesting

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Technical Questions

What exchanges are supported?

Platform support varies. Common integrations include:

Major Exchanges (Typically Supported):

• Binance
• Coinbase Pro
• Kraken
• Bybit
• OKX

Check Current List:

1. Navigate to Settings → Exchange Connections
2. View available exchanges in dropdown
3. Support may be added over time

Requirements:

• Exchange must have API support
• Must allow trade permissions via API
• Must support your desired trading pairs

info

Check the latest exchange support in your platform settings, as availability may vary by region and platform updates.

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How often are prices updated?

Real-time Updates:

• Price data: Updated every 1-5 seconds
• Via WebSocket connections to exchanges
• Ensures accurate, current market data

Order Status:

• Checked every 5-10 seconds
• Faster during high activity
• Immediate notifications on fills

Balance Updates:

• After each trade execution
• On manual refresh
• Periodic sync (every 1-2 minutes)

UI Updates:

• Dashboard: Every 10-30 seconds
• Bot detail page: Every 5-10 seconds
• Active order fills: Real-time notifications

Latency Considerations:

Typical flow:
1. Price changes on exchange (0ms)
2. Exchange broadcasts update (10-100ms)
3. Platform receives update (50-200ms)
4. UI updates (100-500ms)

Total: ~500ms from actual price change
Practically: Real-time for trading purposes

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Are there API rate limits?

Yes, exchanges impose rate limits to prevent abuse.

What are rate limits?

Limit: Number of API requests per time period
Example: 1,200 requests per minute

Exceeded = Temporary ban (1-60 minutes)

How platform handles limits:

• ✓ Automatically throttles requests
• ✓ Respects exchange limits
• ✓ Queues requests if needed
• ✓ Implements exponential backoff
• ✓ Retries failed requests

What you might see:

"Rate limit exceeded - retrying in 30 seconds"

This is normal and handled automatically
No action needed from you

Best practices:

• Don't run excessive bots on one API key
• Spread bot starts over time
• Allow system to handle retries
• Don't manually spam refresh

Typical limits:

Binance: 1,200 requests/minute
Coinbase: 15 requests/second
Kraken: Varies by API tier

Platform uses requests efficiently:
- Batch operations where possible
- Cache non-critical data
- Optimize query patterns

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Can I use the same API key for multiple bots?

Yes! One API key can manage multiple bots on the same exchange.

How it works:

Single API key:
├─ Bot 1: BTC/USDT
├─ Bot 2: ETH/USDT
├─ Bot 3: ADA/USDT
└─ All share same exchange account balance

Advantages:

• ✓ Easier management (one key)
• ✓ Unified balance across bots
• ✓ Single point of configuration
• ✓ Simpler security (one key to protect)

Considerations:

Shared balance:
- All bots draw from same account
- Must ensure sufficient funds for all
- One bot can affect others if balance runs low

API rate limits:
- Shared across all bots using the key
- More bots = more API usage
- Usually not an issue with 3-5 bots

When to use multiple API keys:

✓ Different sub-accounts on exchange
✓ Isolating risk (separate funds)
✓ Testing vs production environments
✓ Very high number of bots (>10)

Security note:

All bots using same key have same permissions
Ensure API key has:
✓ Trade permission (enabled)
✗ Withdraw permission (disabled)

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Performance Questions

What's a realistic profit expectation?

Set realistic expectations to avoid disappointment and make sound trading decisions.

Industry Realistic Returns:

Conservative Strategy:

Monthly ROI: 2-5%
Annual ROI: 24-60%
APR: 10-30%

Characteristics:
- Lower risk
- Fewer grids
- Tighter stop loss
- Stable pairs
- Less active monitoring needed

Moderate Strategy:

Monthly ROI: 4-8%
Annual ROI: 48-96%
APR: 30-60%

Characteristics:
- Medium risk
- Moderate grids
- Balanced parameters
- Major pairs
- Regular monitoring

Aggressive Strategy:

Monthly ROI: 6-12%+
Annual ROI: 72-144%+
APR: 60-100%+

Characteristics:
- Higher risk
- Many grids
- Wider ranges
- Volatile pairs
- Active daily monitoring
- Higher potential for losses too

Reality Check:

✓ Good months: 10-15% ROI
✓ Average months: 4-8% ROI
✓ Bad months: -5% to +2% ROI
✓ Annual average: 30-50% APR (if managed well)

✗ Not realistic: 20-30% monthly consistently
✗ Not realistic: Guaranteed profits every month
✗ Not realistic: 200-500% APR without high risk

Factors affecting returns:

• Market volatility (more = potentially higher profits)
• Fee structure (lower = better returns)
• Grid configuration (optimized = better)
• Market conditions (ranging = best for grids)
• Active management (adjusted = improved)

Comparison to alternatives:

Grid Trading APR: 30-60% (moderate strategy)
Exchange Staking: 4-10% APR
Holding (HODL): Varies wildly (can be negative)
DeFi Yield Farming: 20-200% APR (higher risk)
Traditional Investing: 7-10% annually

warning

Past performance does not guarantee future results. These are estimates based on favorable conditions. You can lose money, especially in trending markets.

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Why is my demo performance different from live?

Demo and live trading can produce different results for several reasons:

1. Order Execution Differences

Demo (Simulated):

- Assumes instant fills at target price
- No slippage
- No partial fills (usually)
- Perfect liquidity
- No real market impact

Example:
Order: Buy at $50,000
Demo: Fills immediately when price hits $50,000

Live (Real Market):

- May not fill immediately
- Slippage occurs (fill at $50,020 instead of $50,000)
- Partial fills common
- Limited liquidity
- Market impact on large orders

Example:
Order: Buy at $50,000
Live: Price touches $50,000 but order only 60% filled

2. Fee Structure

Demo:

May use estimated/generic fees:
- 0.1% default fee
- Simplified calculation
- No fee tier variations

Live:

Exact exchange fees apply:
- Your specific fee tier
- Maker vs taker differences
- Possible discounts (BNB on Binance)
- Fee currency conversions

Impact: Live fees may be higher OR lower than demo

3. Market Timing

Demo:

You test during specific market conditions
- Maybe high volatility period
- Good ranging behavior
- Optimal for grid trading

Results: Excellent performance

Live:

You deploy in different conditions
- Lower volatility
- Trending market
- Less optimal for grids

Results: Lower performance than demo

4. Psychological Factors

Demo (No Real Money):

- No emotional stress
- Willing to wait longer
- Don't panic-stop bot
- More patient with strategy

Behavior: Optimal

Live (Real Money):

- Emotional involvement
- Temptation to intervene
- Panic during drawdowns
- Premature stopping

Behavior: Suboptimal

5. Parameter Differences

Intentional or unintentional:

Demo: Grid range $40k-$60k, 20 grids
Live: Grid range $45k-$55k, 15 grids

Even small differences compound:
- Different fill rates
- Different profit per grid
- Different risk exposure

How to Minimize Differences:

1. Test demo with realistic fees
2. Use exact same parameters in live
3. Account for slippage in expectations
4. Deploy live in similar market conditions
5. Don't intervene emotionally
6. Give strategy time to work (2-4 weeks minimum)
7. Accept some variance is normal

Realistic Expectations:

If demo shows: 60% APR
Expect live: 40-50% APR

Reasons:
- Slippage: -5-10%
- Timing differences: -5-10%
- Fee variations: -2-5%
- Execution imperfections: -5%

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How are fees calculated?

Understanding fee calculation helps you optimize profitability.

Exchange Fee Structure:

Typical Fee Models:

1. Maker/Taker Model (Most Common)
   Maker: Order sits on order book (usually lower)
   Taker: Order fills immediately (usually higher)
   
   Example (Binance):
   Maker: 0.1%
   Taker: 0.1%

2. Tiered by Volume
   Higher trading volume = Lower fees
   
   Tier 1 (< $50k/month): 0.1%
   Tier 2 ($50k-$500k): 0.08%
   Tier 3 (> $500k): 0.05%

3. Discount Tokens
   Hold exchange token for discount
   
   Example: BNB on Binance = 25% fee reduction
   0.1% → 0.075%

Fee Calculation in Grid Trading:

Per Trade:

Buy Order:
Amount: $1,000
Fee: 0.1%
Fee Cost: $1,000 × 0.001 = $1.00
Total Cost: $1,001

Sell Order:
Amount: $1,020 (after price increase)
Fee: 0.1%
Fee Cost: $1,020 × 0.001 = $1.02
Proceeds: $1,018.98

Round-Trip Fees: $1.00 + $1.02 = $2.02

Complete Grid Cycle:

Buy: 0.02 BTC at $50,000 = $1,000
Fee: $1.00
Total invested: $1,001

Price rises to $51,000

Sell: 0.02 BTC at $51,000 = $1,020
Fee: $1.02
Total received: $1,018.98

Gross Profit: $1,020 - $1,000 = $20
Fees Paid: $2.02
Net Profit: $20 - $2.02 = $17.98

Fee Impact: 10% of gross profit

Multiple Grids:

20 grids, 10 complete cycles in a month

Per cycle profit: $17.98
Total profit: $17.98 × 10 = $179.80

Gross profit: $200
Fees paid: $20.20
Net profit: $179.80

Fee impact: ~10% of gross

Optimizing Fees:

1. Use Maker Orders When Possible

Grid orders are typically makers (sit on book)
Benefit from lower maker fees

2. Increase Trading Volume

More volume → Higher tier → Lower fees
Effect compounds over time

3. Use Discount Tokens

Hold BNB (Binance) or equivalent
25% discount on fees
$20 fees → $15 fees (saves $5)

4. Optimize Grid Count

Fewer grids = Fewer trades = Lower total fees
But: Must balance with capture rate

Find optimal point where:
Profit per grid - Fees = Maximized

Fee Display in Platform:

Performance Tab shows:
- Total Fees Paid: $45.50
- Fee breakdown by order
- Fee currency
- Fee percentage

Use this to:
- Track fee impact
- Compare strategies
- Optimize grid count

Tax Considerations:

Note: Fees are often tax-deductible expenses
Keep records of all fees paid
Consult tax professional in your jurisdiction

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Does the platform charge fees?

Check your specific platform's fee structure:

Common models:

1. Free tier - No platform fees, only exchange fees
2. Subscription - Monthly fee for access
3. Performance fee - Percentage of profits
4. Hybrid - Combination of above

What to look for:

• Trading fees (paid to exchange)
• Platform fees (paid to service)
• Withdrawal fees
• Subscription costs
• Hidden fees

Transparency: All fees should be clearly disclosed in:

• Settings → Pricing/Fees
• Terms of Service
• Performance reporting

info

Check your platform's pricing page or settings for specific fee structure. This varies by service provider.

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Additional Help

Still Have Questions?

Documentation:

• Introduction to Grid Trading
• Getting Started Guide
• Configuration Parameters
• Best Practices
• Troubleshooting Guide

Support Channels:

• Email support
• Community Discord/Telegram
• Live chat (if available)
• Help center/Knowledge base

Learning Resources:

• Video tutorials
• Strategy guides
• Community forums
• Trading education

Feedback

Have a question not answered here?

• Submit via support
• Suggest FAQ additions
• Help improve documentation

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Glossary

APR (Annual Percentage Rate) Annualized return on investment, projected over a full year.

Base Currency The first currency in a trading pair (BTC in BTC/USDT).

Grid Level A specific price point where buy or sell orders are placed.

Maker Order An order that adds liquidity to the order book (usually lower fees).

Quote Currency The second currency in a trading pair (USDT in BTC/USDT).

Realized Profit Actual profit from completed trades (withdrawable).

ROI (Return on Investment) Percentage return on capital invested.

Slippage Difference between expected and actual execution price.

Taker Order An order that removes liquidity from the order book (usually higher fees).

Unrealized P&L Paper profit/loss on open positions (not yet sold).

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Last updated: 2025