Binance has added support for automated grid trading as one of the ways to keep people on its platform and earn more trading fees. Currently, Binance has 3 different grid trading robots integrated into the platform.
The spot grid and futures grid
are the same, except that the futures grid strategy allows you to use leverage up to 20x.
TWAP (Time-Weighted Average Price) is an algorithmic trade execution strategy that aims to achieve an average execution price close to the time-weighted average price of the period specified by the user.
A TWAP strategy is often used to minimize the impact of a large order on the market by distributing the large order in smaller quantities and executing them at regular intervals over time.
Binance often rearranges its interface, and grid trading has seen its tab moved quite a bit. Right now, on the app, you can find it under strategic trading.
The best cryptocurrency pairs for grid trading are high liquidity, high market capitalization coins that mirror each other’s price action such as: ETH/BTC, BNB/ETH. BNB/BTC etc. Do not use stablecoin pairs as they are not in balance with the other coins you use for grid trading.
Much higher grid trading robots can be found on Pionex and Kucoin. They allow you to execute more than 10 grid pairs at once, you can change the trading range and increase the investment without pausing or ending the bot. None of this is available on Binance grid trading.
Check out Pionex review here or click here to visit their page.
Check out the Kucoin bot review here or click here to visit their page.
In addition to these built-in bot options, there are third-party bots that work with Binance that we’ve covered in this article.
How to set up your grid trading strategy
1. First, log in to your account, then go to the trading interface of USD-M features and then click on Grid Trading.
So, if you are working on Binance App, click on the Futures tab and then on Grid Trading.
There is a range of different parameters that you need to edit and select, so take your time when creating your bot. Once you’ve chosen the options you want, select “create” and you’ll be good to go!
Grid trading mechanism
It is simple to use the Grid Trading mechanism, from setting up the bot to using it on trading pairs. You simply follow the steps to set up your bot and it’s that simple. Binance is a well-known exchange that is respected by the wider crypto community, this helps ensure their quality and ease of use.
Grid Trading Parameters
- Choose a symbol
- Isolated margin mode
- Profit balance
- Higher and higher amount
- Mode: Arithmetic / Geometric (cannot be changed after setting the grid order)
- Grids (i.e. perimeter order number)
- Leverage/Grids (reduced fees)
- Primary margin (cannot be changed when the grid order is set)
- Entire investment (cannot be changed when the network order is set)
- Quantity (i.e. network quantity)
- (e.g. USD-M futures account margin balance)
- Activation type: final price (optional, can be used before network activation)
- Activated price (optional, can be used before network activation)
- Stop-higher-boundary/stop-inferior-boundary i.e. stop losing the peak price / stop losing the bottom price (elective, can be chosen before the grid is compensated)
- End all orders in stop (Elective, selected by default, can be chosen before the network is activated)
- Close all placements to stop (optional, can be selected before grid activation)
Current margin balance
How to check Active Grid
Time: Grid formation time.
Symbol: During grid trading, users can click on the leverage/profit shown next to the symbol to adjust the grid lever
Initial margin: margin at the time of grid formation.
Total profit: profit collected = network profit + Unrealized income statement
If all close placements
on stops are eligible for open placements under the grid, all placements will be closed at the market price after finishing the grid. The income statement of closing positions is not included in network profit.
Financing fees accrued during strategy work are not added to the network’s profit.
Realized profit: profits and losses realized from grid trading
Unrealized income statement: Based on the last price and the percentage of return on equity, unrealised gains and losses of open orders are calculated.
Duration: Interval from grid formation when the operating time exceeds one day the operating time is indicated as 1d2h9m; and when the operation time exceeds one year. The operating time is shown as 1y1d2h9m, updated every minute.
Grid status: New: When the grid is formed but not activated
Operation: After that, the network is activated
How to check your history
To check the grid transaction history, press the [History] tab and view the details of the grid and completed orders.
Types of grid bot history:
- Abolished: network closure situation
Binance Grid Trading Fee
Binance. The US requires a flat spot trading fee of 0.1%, lower than any other US exchange. like eToro which is at 0.75%, Coinbase at about 0.5%. If we were to make an overview of all reliable US exchanges, we would find that Binance.US requires the lowest fees among them. (Bittrex, Poloniex, etc.).
8 reasons to use a Grid bot
1. Reliable crypto trading strategy:
Grid Trading has been a commonly used strategy for a long time and is a well-developed, well-tested, established and profitable approach. There are several examples of successful traders who have been using it for a long time in different markets. Due to its extreme volatility, the cryptocurrency business, in particular, has proven to be one of the most reliable trading methods for the grid.
The strategy is very simple to use and understand for the user because it does not bring complicated calculations or difficult measurements. It is easy for those who have no experience and expertise in the cryptocurrency trading industry to get started with Binance.
Grid Trading applies the most basic trading concept (buying low, selling high, earning the difference); As a result, it can be applied on any market. It is great for cryptocurrencies, because of the new technology that is such an emotional market, it can be used to deal with its big swings.
You can actively determine the number and duration of the strategy by selecting the price range and number of grids.
Grids can be established in the short term, to make micro profits by using small changes in the thousands of trades every hour, or long-term by selecting a wide range and letting it run for months to make profits from every major trend change.
4. Advanced risk management:
The independence of choosing your network strategy is great as it allows you to create the level of risk and reward level that you feel comfortable with. To produce an ordinary profit consistent with some risk, you can use a grid bot on less dramatic currencies, such as a BTC/USD pair, and for higher premiums, you can use a riskier strategy (for example, with a small market cap coin that has high variations)
5. Automated Trading:
Grid trading is
particularly useful for automation because of its clear logic and the fact that all actions are pre-planned, allowing the bot to completely remove the emotional side of trading that is extremely difficult for humans to do when trading manually. Using Grid Trading with a Bot is a significantly simple and well-organized experience compared to trying to follow a strategy with manual operations.
For traders looking to take their starting steps towards automation, it is one of the best methods since it can trigger virtually any market in any condition. It can be done 24/7 and can be set at almost any time.
6. The best strategies for a side market:
Most trading strategies are based on taking advantage of the current market trend. However, most of the time the market does not have a clear trend. Therefore, traders who use this type of strategy have to wait and stay flat most of the time.
In a side market, you
are able to profit from a grid bot through trading different ranges, it is not as easy as taking advantage of a bull or bear market, but it will help you earn a steady profit.
The grid strategy uses the most fundamental idea of trading, “buy low, sell high” so that it can be extrapolated to fit almost any market. By selecting the price limit and the number of grids, you can actively trade with confidence, with your trades emotionless.
Grids can be established in the short term, making a large number of trades to grab micro profits from all small one-day variations or long-term by selecting a wide range that allows you to work for over a month to earn profits from each huge trend change.
8. The network strategy:
Grid strategy is a technique in which a certain number of buy and sell orders are placed at predetermined intervals below or above the set price. Instead of preventing losses, it turns to profits.
What other platforms offer a GRID Bot?
A. Binance is one of the best platforms for beginners. But except for that, most other platforms offered Grid Bots such as,
3commas is a great alternative to Binance when it comes to bot trading. The entire service of 3commas is bot trading, so you could argue that they are more experienced in this field. Although Binance is one of the most respected crypto platforms, it’s fair to say that they are both great choices for those looking to trade bots.
KU Coin is a well-known exchange. In 2017 it offered grid trading robots that are especially good for illiquid pairs.
Visit KuCoin now
Grid trading robots are also available from Bitsgap. They are well known for their demo.
There are many other platforms out there, although make sure you do your research and then know for sure that they are legitimate.