Grid Trade

Grid trading is an automated trading strategy that involves creating a ‘price grid’. Essentially, the process means the investor places orders above and below the base price level, therefore creating a grid of prices that change at a certain interval. A buy or sell order is executed when the price of the desired currency reaches the set level.

Grid trading has several advantages:

  • Ease of use : There is no need for fundamental market analysis and detailed financial forecasts to trade cryptocurrencies using this model - the system will do everything for traders. Simply set price levels and the strategy will work independently. GDC Trade’s crypto bot will automatically buy or sell cryptocurrencies at the required price.
  • Customization options : Traders can set any number of price levels based on particular circumstances, their own knowledge and trend lines.
  • Processes automation : Grid trading overcomes a trader's main obstacle - human emotions. When the price range is set, trading is automatic and excitement, anger or fear will not impact its effectiveness.

GDC Trade follows the latest innovations and our platform includes a useful Grid Trading feature. Let's take a closer look at how this functionality works…

Using Grid Trading at GDC Trade

We have created a ‘grid bot’ on our resource - a convenient automated tool that adopts the grid trading strategy.

Sometimes coins move in a particular channel with a narrow or wide percentage for a long time-period - this is known as a ‘flat’. GDC Trade’s user-friendly grid trading platform enables traders to play on small movements, corrections and rises. To execute these movements automatically, users can change the bot settings for a cryptocurrency pair:

  • Specify the name of the bot
  • Price to buy a coin
  • Price to sell a coin
  • Click the 'Restart' button to start the system

Please note: the movement is usually 1-2% (at the trader's discretion).

Click the 'Restart' button to start the system

Our Grid Trade system will buy the coin when the price reaches the level specified in the 'Buy price' field. Then, if the price continues to rise and reaches the sell level, the coins will be sold and the trader will receive their earnings.

'Restart' allows members to automatically open the next buy order at a set price when the previous one is sold.

GDC Trade’s innovative platform offers users the opportunity to:

  • Accumulate a coin: In this case, a trader will always work with the same value. For example, if a trader buys a Bitcoin for 18,400 USDT and sells it for 18,600 USDT, next time the trader can buy 0.99 BTC for the same value - the difference of 0.01 Bitcoin will be accumulated as coins.
  • Accumulate cache: Using the same example, if a trader buys one BTC for 18,400 USDT and sells it for 18,600 USDT, the difference of 200 USDT may not be used in the next cycle but accumulated on balance.
  • Reinvest: The difference from selling Bitcoin at a more favorable rate automatically adds to the purchase amount. So, in the next cycle, a trader will be able to buy 1.01 BTC for 18,600 USDT. The purchase value will increase to 18,800 USDT, then 19,200 USDT and so forth.

We discussed GDC Trade’s manual trading mode above. Members also have the option to switch to automatic mode.

The key difference is manual mode creates one cycle of buying and selling, whereas automatic mode enables traders to:

  • Specify a significant range between the buy and sell price. For example, the buy price might be 17,800 USDT and the top sell price might be 22,000 USDT
  • Divide the resulting range into many periods (e.g. 20)

Traders will therefore create 20 cycles that run in parallel. Profit for each period will range from 0.95% to 1.18%, depending on how high and low a trader dives.

If the price falls at each of these levels, a purchase will be made in the amount calculated using this formula:

The specified amount (in our example, it is 10,000 USDT) / number of periods (20).

Using this example, 500 USDT of bitcoin will be bought in each period.

When the price starts to rise, the orders that traders have already made a profit on will be sold. If the order is still at a loss, the system will return to it when the price starts to increase.

Please note: Grid trading using our portal is available for Futures and SPOT accounts. When working with a Futures account, the option to select margin and transaction type is added.

To summarize

Grid trading using our resource allows members to profit by placing orders to buy and sell cryptocurrencies at certain intervals from the base price. This process is automatic, which greatly simplifies trading. A trader can set the desired buy/sell prices, buy amounts and expect to make a profit in the settings. GDC Trade will automatically keep track of price changes and make profitable deals on your behalf.

Discover the advantages of grid trading on our platform today and pave the way to a bright future!