Gate.io Quick-fire Questions on Grid Trading

2021-05-25, 07:33

Q: What Is Gate.io Grid Trading?
A: Grid trading is a market investment strategy for market oscillations. Its specific strategy is to release pending orders according to their entry price. The price of the pending orders are usually higher than the minimum sell price and lower than the minimum purchase price. For every successful trade, another limit order of the equivalent value will be released. Spreads will be earned across multiple trades in the oscillating markets.

Q: What Kind of Market Is Suitable for Using Grid Trading?
A: The grid trading strategy is suitable when the market is oscillating.

Q: Who Is Suitable for Grid Trading?
A: Gate.io grid trading is divided into AI smart grid trading and manually configured grid trading. If you are new to trading, you can use the recommended parameters of Gate.io AI smart grid to set up; if you have some trading experience, you can refer to our recommended parameters or set them up manually.

Q: Which Trading Pairs Are Suitable for Grid Trading?
A: A Grid trading strategy is more likely to gain profit in a market with high volatility. Therefore, investing in a target currency with high volatility (such as BTC) can better utilize the advantages of grid trading. If you have some investment experience, you can also try other high volatility coins, but please be aware of the risks that are involved.

Q: Can I Set My Own Circuit Breaker on Grid Trading?
A: Yes, you can. When you set the grid strategy in the settings, you can set a price at which the target asset needs to reach. The smart program will automatically stop the profit/loss for you by selling out the coins.

Q: Will a Higher Number of Grids Result in a Bigger Gain for Me?
A: No, grid revenue = a single grid spread * the number of single grids* the number of completed sell orders. The number of grids is related to the frequency of trading. If you set too many grids, you may have too many ongoing transactions; if too few, you may not be able to complete the trade for a long time.

Q: The Denser the Grid, the Easier It Is for Me to Profit?
A: No, grid revenue = a single grid spread. * the number of single grids* the number of completed sell orders. The more grids there are, the more completed the grids will be. In effect, micro oscillation in the market will be captured and more transactions will be completed, and vice versa.

Q: Are There Many People Who Can Profit with Grid Trading?
A: At present, the number of Gate.io grid trades running daily is around 50,000, the total investment amount has broken 100 million and is still growing, and the seven-day annualized return is stable at around 35%. You can view the live grid trading returns of other users through the Gate.io Smart Quantitative Ranking.

Q: Can a Newbie Use Grid Trading? Can I Choose AI Smart Grid or Configure the Grid Manually?
A: Yes, grid trading is one of the most classic trading strategies and the principle is simple and easy to understand for novices. If you are trying Gate.io grid trading for the first time, we recommend that you choose AI Smart Grid, which automatically calculates the highest yielding grid parameters based on the last 7 days of historical data. You only need to fill in the percentage of your investment.

Q: How Many Days is Appropriate to Use Grid Trading?
A: The return of grid trading is affected by the market. Theoretically, the shorter the time period, the less likely the market will be volatile, and vice versa. Therefore, we recommend that you try grid trading for one month taking specific market conditions into consideration.

Q: Apart from Spot Trading, What Other Types of Trading Can I Use the Grid for?
A: At Gate.io, in addition to spot trading, you can also run a grid trading strategy for futures contracts. At the same time, Gate.io also has CTA signal tracking series strategies in its smart quantitative strategies: MACD, MACD-RSI, Dual Average, and Dual Average-RSI.

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