Trading Strategies
sarah-jenkins
Written by
Sarah Jenkins
Feb 1, 2025
2 min read

Grid Trading Strategy Explained

Crypto markets trade sideways ("range") about 70% of the time. While most traders get bored and lose money forcing trades in a flat market, Grid Trading Bots thrive here.

How It Works

Imagine a net (grid) placed over the price chart.

  • Price Drops: The bot buys small amounts at pre-set levels.
  • Price Rises: The bot sells those specific amounts at a slightly higher level.

You earn the "spread" between every buy and sell line. It’s classic "buy low, sell high" executed hundreds of times a day.

Best Market Conditions

  • Sideways/Ranging: The price bounces between $20k and $25k without breaking out.
  • High Volatility: The more the price wiggles up and down, the more profit you make.

Setting It Up

  1. Identify the Range: Use Technical Analysis to find the Support (Floor) and Resistance (Ceiling).
  2. Set Grid Lines: More lines = more frequent trades but smaller profit per trade. Fewer lines = bigger profit per trade but waiting longer.
  3. Launch: Follow our Launch Guide.

Risk Management

The biggest risk is the price breaking out of your grid.

  • If price dumps below your floor, you are left holding a bag of coin.
  • If price moons above your ceiling, you sold everything early and hold only cash.
  • Solution: Always set a Stop-Loss just outside your grid range.

Turn boring markets into cash flow machines.

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