Spot Grid Trading is a quantitative trading strategy and automated trade execution that allows users to profit from market volatility by automatically buying low and selling high within a given price range. To execute the spot grid, the user only needs to specify the minimum and maximum price range, the number of grids, and the amount to be invested.
The execution of quantitative trading strategies in an automated form in cryptocurrencies is also known as trading bots or crypto bots, and the benefits are as follows:
- Reduces repetitive tasks
- Take advantage of trading opportunities
- Reduces your trading risk
How do I get started with spot grid trading?
1. Go to the official MEXC website and login, then click on [Trade] -> [Quantitative Trading].
2. On the [Quantitative Trading] page, select [Strategy Pool] -> [Create Grid].
3. Set the parameters and click [Create] to execute the spot grid.
Parameter settings description
- Trading pairs: Choose the cryptocurrency pair you want to trade, for example, BTC/USDT.
- Lower bound: The lowest price you will pay to buy in. If the market price drops below this price, the system will stop buying.
- Upper bound: The highest price you’ve set for selling out. The system will stop selling out if the market price rises above this level.
- Grid: The number of grids to be placed.
(*Note: The system is set to (number of grid -1), if your ideal number of grids is 5, please fill in 6) - Price Difference (automatic calculation): (Upper bound – Lower bound)/ (total number of Grid-1)
- Profit per Grid (automatic calculation): Profit percentage after matching buy and sell orders for each grid.
- Invest currency: Users can select the cryptocurrency in which they want to invest. For example, if your trading pair is BTC/USDT, you can invest in BTC, USDT, or BTC + USDT.
- Invest amount: The amount you wish to invest (based on the assets available in your spot account), the investment amount must meet the minimum investment amount in order to execute the spot grid.
- Minimum investment amount (automatic calculation): The calculation is based on price difference and number of grids.
- The minimum investment goes up as the price difference goes up.
- The minimum investment goes up as the number of grids goes up.
Advanced Settings (Optional) of Grid Trading
Trigger price: When the market price rises above or falls below the trigger price, the grid orders will be triggered.
Stop-loss price: It denotes the lowest price at which the base currency can be sold. When the base currency’s market price falls below the Stop-loss Price, the system will automatically sell the currency to stop losses.
Take-profit price: When the market price reaches the set take-profit price, the system will automatically stop trading and settle for you to maintain your profit guarantee.
Sell BTC upon termination (ticked): When you terminate a Spot Grid trade, the system will automatically settle the trade based on the currency you hold, such as Bitcoin. If this box is unchecked, you will continue to hold this currency after Spot Grid trading has ended.
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