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When should we use Grid trading?
From the operation mode of grid trading, it can be seen that grid trading is suitable for: Interval fluctuating market or fluctuating rising market.
In these two types of market, grid trading can conduct sufficient transactions and continuously obtain profits, and the profits can continue to accumulate to achieve final profits.
But grid trading does not apply to: fluctuating falling market. Because it may eventually make the user's overall account return rate negative.
It should be noted that the grid should not be too dense, otherwise the profit may not be enough to pay the transaction fee. At the same time, when the bot is running, insufficient assets in the spot wallet may cause the bot to stop running.
How to determine the market?
In trading, users can predict market trends through some technical indicators. Among the many indicators, the ones that are closely related to grid trading are CCI (Commodity Channel Index) and SuperTrend.
Commodity Channel Index
The CCI compares the current price to an average price over a period of time. The indicator fluctuates above or below zero, moving into positive or negative territory.
When the CCI (Commodity Channel Index) indicator fluctuates between -100 and +100, or when the indicator is >100.it’s the moment for using Grid trading.
How to use
In the K-line chart on the trading page, click on "Indicators", enter "CCI" in the pop-up box and click on "Commodity Channel Index "The CCI indicator chart will appear below the K-line chart.
SuperTrend
As the name suggests, ‘Supertrend’ is a trend-following indicator plotted on prices. It is easy to use and gives an accurate reading about an ongoing trend.
The buy and sell signals are generated when the indicator starts plotting either on top of the closing price or below the closing price. A buy signal is generated（Green graphics） when the ‘Supertrend’ closes below the price, and a sell signal is generated（Red graphics）when it closes above the closing price.
We will use the grid bot when the indicator turns Green graphics, and close the grid bot when it turns Red graphics.
How to use
Click on "Indicators" on the trading page, enter "Supertrend" in the pop-up box and click on "Supertrend", then the Supertrend indicator will appear on the K chart.
- When should we use Grid trading?
- How to determine the market?