FAQ for Grid Trading Bot

# FAQ for Grid Trading Bot > [time=Sun, Jan 16, 2019 3:43 PM] > [[KR] FAQ for Grid Trading Bot](/xeXoKJLDTgOPMhQ8gthuFA) Visit Pionex for more advanced grid trading bots: https://www.pionex.com - * Trading bots were provided directly on the exchange — **More stable compare to API trading** * **Low trading fee** — Pionex trading fee is 0.05% for maker and taker * **Good liquidity** — Pionex aggregates the liquidity from Binance and Huobi * **9 bots for different market conditions** -- Contents ofr the FAQ [TOC] --- --- ## **INTRO OF THE BOT** ### 1. When is the best moment for me to create a Grid Trading Bot? Grid Trading Bot is the best weapon in the swinging market. When the price keeps fluctuated in the same range, that’s the moment to create a Grid Trading Bot. 3 use cases for the grid bot https://medium.com/bituniverse/3-use-case-for-grid-bot-to-trade-crypto-253675f123e8 ### 2. Does Grid Trading Bot fit all the market condition? No. When the price keep tanking or pumping, that’s the worst moment to use the Grid Trading Bot. Try to use the bot in the swinging market. But some of our users have found other usage for the bot in different market condition. Such as buy the dip or sell at the top!! Check it out here -> https://medium.com/bituniverse/better-way-to-buy-bitcoin-at-the-bottom-993e00779431 ### 3. The bot looks perfect! How can I setup a Grid Trading Bot? Are there any tutorials? We have made some tutorials as following: * Video - How to use Grid Trading Bot in BitUniverse: https://youtu.be/NsEX3qHg39A * Check out tutorial for Grid Trading Bot on Medium: https://goo.gl/EFh6aJ * [Check step-by-step explanation of the bot](https://hackmd.io/egxkUDVHQZyyfEdy5Niucw?both#STEP-BY-STEP-EXPLANATION-OF-GRID-TRADING) ### 4. What will happen when the price across the boundary of the bot? Let's take BTC/USDT pair as an example, * If the price break through the highest price of the bot, all BTC will be sold and you’ll stake USDT. The bot will remain at the same range and waiting for the price drop back to the range. * If the price drop through the lowest price of the bot, all of the buy orders for BTC will be fully executed. The bot will remain at the same range and waiting for the price rise back to the range. --- ## **BOT SETUP** ### 1. What's the meaning for each parameter? I don't understand any of them. * **High Price:** Highest sell price. The upper boundary of your bot * **Low Price:** Lowest buy price. The lower boundary of your bot. * **Stop-Loss Price(Optional):** This parameter is optional. The price that bot will stop-loss and cancel the bot. * **Number of Grid:** There's a limitation in the number of grid, you can't set it below 2 and above 99. * **Amount per Grid:** The amount for each order in the bot. ### 2. How can I check out the parameters that other users set for their Grid Trading Bot? Currently, you can’t see that in the app. We encourage everyone to discuss and share the setting in our Telegram group or Facebook group. The wisdom of the masses is inexhaustible. Telegram: https://t.me/butrader Facebook: https://www.facebook.com/groups/bituniverse/ ### 3. Which pair and what range should I choose for the bot? To be honest, there's no formula for the best pair and range. This depends on your trading experience. **In General, we'll recommend you to tune the profit per grid between 0.5~2%.** The trick is to choose a pair with good depth and make the range wider. Grid trading bot is for long-term strategy. ### 4. How does the number of grid affect my profit? * When you have more grids in a limited range, you’ll have higher possibility to executed your orders but less profit per grid. * When you have less grids in a limited range, you’ll have lower possibility to executed your orders but more profit per grid. ### 5. How do I calculate my profit from the Grid Trading Bot? Currently, we do not include the trading fee cost from exchanges. Before create you Grid Trading Bot, you should aware of the trading fee from the exchange. Binance take you 0.1% per trade and varies from your level in Binance and BNB. Keep your profit per grid from 0.5% to 2% is the better strategy when you create a bot. (Details: https://support.binance.com/hc/en-us/articles/115000429332-Fee-Structure-on-Binance) ### 6. What will happen after I cancel the bot? After you decide to cancel the bot, it’ll cancel all the grid orders and stop running immediately. Your funds will remain with the same allocation at the moment it stop running. --- ## REPORT AND ROI DATA ### 1. How can I check my status of the bot? After the bot created, you can check your “ROI Report” by clicking the TRANSACTION DETAIL button. ### 2. What’s the definition for each profit in the report? * **Total Investment** is the total value for your BTC plus USDT at the moment you created the bot * **Grid Profit:** The profit made by the bot from each buy and sell orders * **Unrealized Profit:** your total holding asset compare to the moment you created the bot Unrealized Profit = (Current Price - Average Buy Price) * Amount of BTC * **Total Profit** = Grid Profit + Unrealized Profit * **Annualized Return** = Realized Profit / Total investment / Grid lasting time(normalized into days) * 365 * 100% --- ## STEP BY STEP EXPLANATION OF GRID TRADING In this section, let's find out how the bot actually work. In this example, we use BTC/USDT pair the following parameters: * Highest price: **$4000** * Lowest price: **$3000** * Number of grid: **6** * Amount per grid: **1 BTC** 1. The bot will distributed the grid according to our setting. ![](https://i.imgur.com/2Hx78IY.png) 2. Detect the current price and remove the nearest order from it. ![](https://i.imgur.com/pkUcxk8.png) 3. Turn all the orders into sell orders and buy orders. Also calculate the BTC and USDT amount needed for creating the bot. (The bot will re-allocated your fund if needed) ![](https://i.imgur.com/GdSYoF1.png) 4. When the price rise and hit the sell order, it'll place a buy order one grid down from that grid, which is $3400 in this case. ![](https://i.imgur.com/4OZr1Ox.png) ![](https://i.imgur.com/7Bn5Dk5.png) 5. When the price drop and hit the buy order, it'll place a sell order one grid up from that grid, which is $3600 in this case. ![](https://i.imgur.com/DL3qpb5.png) ![](https://i.imgur.com/1Y4wPnQ.png) 6. With continuously buy and sell, we can make profit from each trade and that's how we define the profit per grid. ![](https://i.imgur.com/chvsPkL.png)