Configuration Parameters Explained
This comprehensive guide explains every parameter you'll encounter when creating and configuring a grid trading bot.
Basic Parameters
Trading Pair
What it is: The cryptocurrency pair you want to trade
Format: BASE/QUOTE (e.g., BTC/USDT, ETH/USDT)
- Base currency (first): The asset you're buying and selling (BTC, ETH, etc.)
- Quote currency (second): The currency you're using to pay (USDT, USD, BTC, etc.)
How to choose:
- Select pairs you understand and monitor regularly
- Choose pairs with good liquidity and trading volume
- Consider volatility - moderate volatility works best for grid trading
Examples:
- BTC/USDT: Trading Bitcoin using Tether (stablecoin)
- ETH/BTC: Trading Ethereum using Bitcoin as payment
- ADA/USDT: Trading Cardano using Tether
Beginners should start with major pairs like BTC/USDT or ETH/USDT for their higher liquidity and more predictable behavior.
Price Range Parameters
Price Lower
What it is: The lowest price level in your grid (bottom boundary)
Default: 30% below current market price
Purpose:
- Defines where your lowest buy order will be placed
- Below this price, the bot stops placing new buy orders
- Acts as the floor of your trading range
How to set:
- Use technical analysis to identify support levels
- Consider historical price ranges (check 30-day or 90-day lows)
- Leave room for normal market fluctuations
Example:
Current BTC Price: $50,000
Price Lower: $40,000 (20% below)
Reasoning: Historical support at $40k, unlikely to drop below in normal conditions
Common Mistakes:
- ❌ Setting too close to current price → Limited profit opportunities
- ❌ Setting too far → Orders may never fill, capital sits idle
- ✅ Use support levels from technical analysis
Price Upper
What it is: The highest price level in your grid (top boundary)
Default: 30% above current market price
Purpose:
- Defines where your highest sell order will be placed
- Above this price, the bot stops placing new sell orders
- Acts as the ceiling of your trading range
How to set:
- Identify resistance levels from price charts
- Consider recent highs and round psychological numbers
- Account for potential price appreciation
Example:
Current BTC Price: $50,000
Price Upper: $60,000 (20% above)
Reasoning: Strong resistance at $60k, price historically struggles above this level
What happens if price breaks out of range?
- Breaks above upper bound: All sell orders fill, bot stops selling (only holds base currency)
- Breaks below lower bound: All buy orders fill, bot stops buying (only holds quote currency)
Your grid works best when price stays within the defined range. If you expect strong trending markets, grid trading may not be suitable.
Grid Count
What it is: The number of price levels (grids) to create between lower and upper bounds
Range: Typically 5-100 grids
Purpose:
- Determines the spacing between each buy/sell order
- Affects trade frequency and profit per trade
Calculation:
Grid Spacing = (Price Upper - Price Lower) / Grid Count
Example:
Price Range: $40,000 - $60,000 ($20,000 range)
Grid Count: 20
Grid Spacing: $20,000 / 20 = $1,000 per grid
Considerations:
More grids (50-100):
- ✅ More frequent trades
- ✅ Smoother profit accumulation
- ❌ Smaller profit per trade
- ❌ Higher cumulative trading fees
- ❌ More complex order management
Fewer grids (5-20):
- ✅ Larger profit per trade
- ✅ Lower total trading fees
- ❌ Less frequent trades
- ❌ Longer wait between profits
Optimal Grid Count:
- Wide price range (±30%+): 30-50 grids
- Moderate range (±15-30%): 15-30 grids
- Narrow range (±5-15%): 10-20 grids
- Very narrow range (less than ±5%): 5-10 grids
Fee Consideration: Always ensure your profit per grid exceeds trading fees:
Minimum Profit Per Grid > (Trading Fee × 2)
Example with 0.1% trading fee:
Profit per grid should be > 0.2% to be profitable after buy AND sell fees
Start with 10-20 grids for your first bot. You can experiment with different counts as you gain experience.
Investment Amount Parameters
Investment Quote
What it is: Amount of quote currency (e.g., USDT) to allocate to the bot
Purpose: Used for placing buy orders (purchasing the base currency)
How it's used:
- Divided among buy orders below current price
- Each buy order gets a portion based on grid configuration
- Larger investment = larger order sizes = more profit per trade
Example:
Trading Pair: BTC/USDT
Investment Quote: 10,000 USDT
Grid Count: 20
Buy orders below current price: 10
Each buy order ≈ 10,000 / 10 = 1,000 USDT per order
How to set:
- Use the slider to select percentage of available balance
- Or manually enter specific amount
- Consider keeping reserve funds for other opportunities
Never invest more than you can afford to lose. A common recommendation is to allocate no more than 5-10% of your total portfolio to a single grid bot.
Investment Base
What it is: Amount of base currency (e.g., BTC) to allocate to the bot
Purpose: Used for placing sell orders (selling the base currency)
How it's used:
- Divided among sell orders above current price
- Each sell order gets a portion based on grid configuration
- Allows the bot to capture profits as price rises
Example:
Trading Pair: BTC/USDT
Investment Base: 0.5 BTC
Grid Count: 20
Sell orders above current price: 10
Each sell order ≈ 0.5 / 10 = 0.05 BTC per order
Balanced Investment: Ideally, your investment should be balanced:
Investment Quote ≈ Investment Base × Current Price
Example:
Current BTC Price: $50,000
Investment Base: 0.2 BTC ($10,000 value)
Investment Quote: $10,000 USDT
Total Investment: ~$20,000
This ensures you have roughly equal capacity to buy and sell.
Advanced Parameters
Strategy Type
Arithmetic Grid
What it is: Equal price spacing between all grid levels
Formula:
Grid Spacing = (Price Upper - Price Lower) / Grid Count
Characteristics:
- Same dollar amount between each grid level
- Linear distribution
- Easy to understand and predict
Example:
Price Range: $40,000 - $50,000
Grid Count: 5
Grid Levels:
$50,000 (upper bound)
$48,000 (+$2,000)
$46,000 (+$2,000)
$44,000 (+$2,000)
$42,000 (+$2,000)
$40,000 (lower bound)
Equal $2,000 spacing
Best for:
- Most trading scenarios
- Narrow to moderate price ranges
- Beginners (easier to understand)
- Stable or low-volatility pairs
Geometric Grid
What it is: Percentage-based spacing between grid levels
Formula:
Each grid level increases by a constant percentage
Characteristics:
- Spacing increases proportionally at higher prices
- More grids concentrated at lower prices
- Better captures percentage-based movements
Example:
Price Range: $40,000 - $50,000
Grid Count: 5
Geometric ratio: ~1.0574 (5.74% spacing)
Grid Levels:
$50,000 (upper bound)
$47,300 (+5.74%)
$44,741 (+5.74%)
$42,331 (+5.74%)
$40,028 (+5.74%)
$40,000 (lower bound)
Increasing dollar spacing, constant percentage
Best for:
- Very wide price ranges (50%+)
- Highly volatile markets
- Assets that move in percentage terms
- Advanced traders
Consider geometric grids when your price range is extremely wide (e.g., $20,000 - $100,000 for BTC) or when dealing with low-priced assets that move in large percentage swings.
Order Amount Per Grid
What it is: How much to buy or sell at each individual grid level
Calculation: Automatically calculated based on total investment and grid count
Formula:
Order Amount = Total Investment / Number of Grid Levels (on that side)
Example:
Total Quote Investment: 10,000 USDT
Buy orders (below current price): 10 grids
Order Amount per Buy Grid = 10,000 / 10 = 1,000 USDT
Why it matters:
- Larger orders = More profit per trade (but ties up more capital)
- Smaller orders = More flexible, lower risk per order
- Must meet exchange minimum order size
Auto-optimization: The system automatically calculates optimal order sizes based on:
- Your total investment
- Grid count
- Current market price
- Exchange requirements
You don't manually set this parameter - it's calculated automatically. However, understanding how it works helps you choose appropriate investment amounts and grid counts.
Profit Per Grid
What it is: Target profit percentage between each grid level
Range: Typically 0.5% - 5%
Purpose:
- Defines how much profit you aim to capture per completed grid cycle
- Affects the sell price relative to the buy price
Formula:
Sell Price = Buy Price × (1 + Profit Per Grid / 100)
Example with 1% profit per grid:
Buy at $50,000
Sell at $50,000 × 1.01 = $50,500
Profit: $500 per BTC (minus fees)
Considerations:
Higher Percentage (3-5%):
- ✅ More profit per trade
- ❌ Requires larger price movements
- ❌ Trades happen less frequently
- Best for: Volatile markets
Lower Percentage (0.5-1.5%):
- ✅ More frequent trades
- ✅ Works in low-volatility markets
- ❌ Smaller profit per trade
- ❌ Fees take larger percentage of profit
- Best for: Stable/ranging markets
Fee Break-Even:
Minimum Profit Per Grid = Trading Fee × 2
Example with 0.1% maker/taker fees:
Minimum profit needed = 0.1% + 0.1% = 0.2%
Recommendation: Set at least 0.5-1% to ensure profitability
Always account for trading fees! If your profit per grid is 0.5% but fees are 0.2% per trade (0.4% round trip), your net profit is only 0.1% - barely worth it.
Risk Management Parameters
Take Profit Percent
What it is: Automatically stop and close all positions when total profit reaches this level
Example: 20% means bot stops when you've made 20% profit on total investment
Purpose:
- Lock in profits during favorable market conditions
- Prevent giving back gains
- Automated exit strategy
How it works:
Initial Investment: $10,000
Take Profit: 20%
When total realized profit reaches $2,000 (20% of $10,000):
→ Bot automatically stops
→ All pending orders are cancelled
→ Current positions remain (not automatically sold)
→ Profits are locked in
Use cases:
- You expect a short-term favorable market condition
- You want to secure gains after a volatile period
- You're testing a new strategy and want to limit exposure
Setting recommendations:
- Conservative: 10-15% (secure gains early)
- Moderate: 20-30% (balanced approach)
- Aggressive: 50%+ (let profits run)
- Leave blank: Continuous operation (no automatic stop)
For long-term grid trading in ranging markets, consider leaving take profit blank or setting it high (50%+) to let the bot run continuously.
Stop Loss Percent
What it is: Automatically stop the bot to limit losses when total loss reaches this level
Example: -10% means bot stops when you're down 10% on total investment
Purpose:
- Risk management and capital preservation
- Limit losses if market moves strongly against your range
- Protect against sustained bear markets or trending breakouts
How it works:
Initial Investment: $10,000
Stop Loss: -15%
When total loss reaches -$1,500 (-15% of $10,000):
→ Bot automatically stops
→ All pending orders are cancelled
→ Current positions remain (you keep any filled positions)
→ Further losses are prevented
What triggers a stop loss:
- Price breaks far below your lower bound (all buys filled, price continues down)
- Price breaks far above your upper bound (all sells filled, price continues up)
- Sustained trending market reduces unrealized position value
Setting recommendations:
- Conservative: -10% to -15% (tight risk control)
- Moderate: -20% to -25% (balanced)
- Aggressive: -30% or wider (withstand more volatility)
- None: Not recommended (unlimited risk)
Always set a stop loss! Grid trading can result in significant losses if price trends strongly in one direction. A stop loss is your safety net.
Example Scenario:
BTC Grid Bot
Lower Bound: $40,000
Upper Bound: $60,000
Stop Loss: -20%
Scenario: Bear market drives BTC from $50,000 to $25,000
What happens:
1. All buy orders fill between $40k-$50k
2. You're now holding BTC bought at avg $45,000
3. Current price $25,000 = ~44% unrealized loss
4. Stop loss triggers at -20%, bot stops
5. You keep the BTC (can sell manually or wait for recovery)
Max Position Size
What it is: Maximum total amount allowed in open positions
Purpose:
- Prevents over-allocation during extreme price movements
- Risk management across multiple bots
- Capital preservation
Example:
Total Capital: $100,000
Max Position Size per Bot: $10,000 (10% of capital)
Even if bot settings would allocate $15,000, it's capped at $10,000
Use cases:
- Running multiple bots simultaneously
- Limiting exposure to any single strategy
- Ensuring diversification
Setting recommendations:
- Single bot: Can leave blank or set to 100% of allocated capital
- Multiple bots: Set to 20-30% max per bot
- High-risk strategies: Set to 5-10% max
Order Execution Parameters
Allow Partial Fills
What it is: Whether orders can be partially executed
Options:
- Enabled (recommended): Orders can fill in parts over time
- Disabled: Orders must fill completely or not at all
Example:
Order: Buy 0.1 BTC at $50,000
Partial Fills Enabled:
- 0.03 BTC fills immediately
- 0.04 BTC fills an hour later
- 0.03 BTC fills the next day
- Total: 0.1 BTC filled over time
Partial Fills Disabled:
- Order only fills if full 0.1 BTC is available at once
- May wait much longer or never fill in low liquidity
Advantages of Allowing Partial Fills:
- ✅ Better execution in low liquidity markets
- ✅ Faster order completion
- ✅ More flexible and responsive
Disadvantages:
- ❌ Slightly more complex tracking
- ❌ Multiple fee charges (per partial fill)
Keep this enabled unless you have a specific reason to disable it. Most exchanges and market conditions work better with partial fills allowed.
Auto Restart on Completion
What it is: Whether to automatically restart the grid when take profit or stop loss is triggered
Options:
- Enabled: Bot recreates grid and continues trading after stopping
- Disabled: Bot stops and requires manual restart
How it works:
Scenario 1 - Take Profit Hit (Auto Restart Enabled):
1. Grid bot reaches +20% profit
2. Bot stops and cancels orders
3. System waits 5 minutes
4. Bot automatically recreates grid with new parameters based on current price
5. Trading resumes
Scenario 2 - Take Profit Hit (Auto Restart Disabled):
1. Grid bot reaches +20% profit
2. Bot stops and cancels orders
3. Bot remains stopped
4. You manually review and restart if desired
Use cases for enabling:
- Hands-off automated trading
- Long-term strategies in stable markets
- You trust the bot to operate continuously
Use cases for disabling:
- You want to review performance before continuing
- Market conditions might change (require parameter adjustments)
- Testing new strategies
Auto restart can be risky in volatile markets. If your grid hits stop loss due to strong trend, auto restart might immediately lose again. Use with caution.
Trailing Up
What it is: Automatically adjust the entire grid range upward as price increases
How it works:
Initial Grid: $40,000 - $50,000
Current Price reaches: $50,000 (upper bound)
With Trailing Up Enabled:
→ Grid shifts up to: $50,000 - $60,000
→ New buy orders placed at higher levels
→ Follows bullish trend
Without Trailing Up:
→ Grid stays: $40,000 - $50,000
→ All sell orders fill
→ No more selling happens above $50k
Best for:
- Bullish trending markets
- Assets with strong upward momentum
- Capturing profits while riding the trend
Risks:
- May buy at increasingly higher prices
- If trend reverses, you're holding expensive positions
- Works against grid trading's range-bound nature
Trailing features contradict the core grid trading principle (profiting from range-bound markets). Use sparingly and only when you expect sustained trends.
Trailing Down
What it is: Automatically adjust the entire grid range downward as price decreases
How it works:
Initial Grid: $40,000 - $50,000
Current Price drops to: $40,000 (lower bound)
With Trailing Down Enabled:
→ Grid shifts down to: $35,000 - $45,000
→ New sell orders placed at lower levels
→ Follows bearish trend
Without Trailing Down:
→ Grid stays: $40,000 - $50,000
→ All buy orders fill
→ No more buying happens below $40k
Best for:
- Bearish trending markets
- Catching opportunities in declining assets
- Dollar-cost averaging into positions
Risks:
- Continues buying as price falls (potential losses)
- May accumulate large positions in declining asset
- Works against grid trading's range-bound nature
Trailing down is particularly risky as it can lead to "catching falling knives" - buying an asset that continues to decline. Use with extreme caution.
Parameter Recommendations by Experience Level
Beginner
Trading Pair: BTC/USDT (high liquidity)
Price Range: ±20% from current (e.g., $40k-$60k if BTC at $50k)
Grid Count: 10-15
Investment: 5-10% of portfolio
Strategy Type: Arithmetic
Profit Per Grid: Auto (or 1%)
Take Profit: 20%
Stop Loss: -15%
Partial Fills: Enabled
Auto Restart: Disabled
Trailing: Disabled
Intermediate
Trading Pair: Various major pairs
Price Range: ±25-30% based on technical analysis
Grid Count: 20-30
Investment: 10-20% of portfolio
Strategy Type: Arithmetic (or Geometric for wide ranges)
Profit Per Grid: 0.7-1.5% optimized for pair
Take Profit: 30% or blank
Stop Loss: -20%
Partial Fills: Enabled
Auto Restart: Enabled (with careful monitoring)
Trailing: Selectively enabled based on market
Advanced
Trading Pair: Mix of major and altcoins
Price Range: Dynamic based on volatility and support/resistance
Grid Count: 30-50+ optimized for fees and volatility
Investment: Diversified across multiple bots
Strategy Type: Varies by pair and range
Profit Per Grid: Optimized per grid level
Take Profit: Strategy-dependent
Stop Loss: -25% with hedging strategies
Partial Fills: Enabled
Auto Restart: Conditional based on market regime
Trailing: Strategic use in trending conditions
Next Steps
Now that you understand all configuration parameters, you're ready to: