Complete Guide to Grid Robots: From Basic Knowledge to Advanced Applications

Grid bots are the tools of a new era in automated trading. If you’re seeking ways to fully capitalize on price fluctuations in the cryptocurrency market and achieve stable returns, this detailed guide will answer all your questions. From basic concepts to advanced operations, we will guide you step-by-step to master this powerful trading tool.

What is a Grid Bot? Detailed Explanation of Core Mechanisms

A grid bot is an automated trading strategy tool that executes buy and sell orders at fixed intervals within a preset price range. Its main advantage is that you don’t need to monitor the market constantly — the bot will automatically buy low and sell high within the set range, capturing every profit opportunity from price volatility.

Simply put, you set a price range (for example, BTC from $60,000 to $65,000) and a grid number (the number of buy/sell order groups). The grid bot will evenly distribute orders within this range. When the price drops, the bot executes a buy; when it rises, it executes a sell. This “buy low, sell high” cycle can generate considerable cumulative gains in oscillating markets.

Which Market Conditions Are Suitable for Grid Bots?

The best environment for grid bots is oscillating and narrow-range markets. When the market fluctuates within a relatively stable price band, the grid bot can perform optimally.

Specifically:

• Neutral Mode: Best for pure sideways oscillation (price fluctuates but overall sideways)
• Long Mode: Best for upward oscillation (overall upward trend with pullbacks)
• Short Mode: Best for downward oscillation (overall downward trend with rebounds)

Conversely, if the market experiences a unidirectional surge or plunge, the grid bot may not perform effectively and could even face losses.

Supported Trading Pairs and Cryptocurrencies

Currently, the platform’s grid bot only supports USDT perpetual contract trading pairs. This means you can only create grid strategies using USDT as the trading and settlement currency.

The specific list of supported contracts can be checked in the official announcement. Make sure the trading pair you choose is supported before starting.

Fee Structure and Cost Calculation

The fee structure for the grid bot is the same as your regular derivative trading rates — no additional fees are charged. You only pay:

1. Trading fees: Same as regular derivative order placement and execution fees
2. Funding fees: If you hold an open position at funding timestamp, you will pay or receive funding fees depending on your position direction and market conditions

Note that negative funding fees mean you are earning funding; positive means you are paying. These fees directly affect your remaining margin within the bot. For detailed funding rates and settlement times, see the relevant page.

Account Requirements and Verification

Required Verification Level

Using a grid bot requires completing standard personal KYC verification. This is a necessary compliance and risk management measure set by the platform.

KYC verification is relatively simple, involving identity verification, address verification, etc. The requirements differ for individual and corporate accounts; please refer to the appropriate KYC guide based on your account type.

Funds Account and Auto-Transfer Mechanism

All grid bot trades are conducted directly through your funds account. When creating a bot, the system automatically transfers your designated investment amount from your funds account to the bot. When the bot stops, the invested capital and profits are automatically transferred back to your funds account.

You can view all fund transfer records in “All Transactions” → “Assets” → “Funds Account” → “History” → “Bots”.

Detailed Comparison of Three Trading Modes

The grid bot offers three modes, suitable for different market conditions:

Neutral Mode

• Suitable for: pure sideways oscillation (no clear upward or downward trend)
• Operation: simultaneous buy and sell operations to profit from price fluctuations
• Ideal for: traders expecting the market to oscillate within a certain range

Long Mode

• Suitable for: overall upward trend with pullbacks
• Operation: mainly buy, small sell, gradually increasing holdings
• Ideal for: bullish traders wanting to accumulate more positions

Short Mode

• Suitable for: overall downward trend with rebounds
• Operation: mainly sell, small buy, gradually increasing short positions
• Ideal for: bearish traders aiming to profit from declines

Choosing the correct mode is key to the success of your grid bot. An incorrect choice may lead to trading directions opposite to the actual market trend.

Grid Bot Parameter Limits Table

Price Upper and Lower Limits

These limits ensure your price range is reasonable and executable.

Grid Quantity Limits

Important: The maximum number of grids is not fixed at 400; the system adjusts automatically based on your set price range. Narrower ranges result in fewer maximum grids. This design ensures each grid has sufficient space to generate profits exceeding transaction costs.

When creating a bot, the system calculates and displays the maximum available grid count under current parameters in the “Number of Grids” field.

Investment Amount Limits

The investment amount varies depending on:

• Your set maximum and minimum prices
• Selected grid number
• Your account funds

The system calculates and displays the minimum and maximum investment amounts at creation. Ensure your investment falls within this range.

Managing Multiple Bots Simultaneously

You can run up to 50 grid bots at the same time. This limit provides ample flexibility — you can deploy different strategies across multiple trading pairs.

Note:

• Each bot’s investment and profit are isolated; they cannot share funds
• Losses in one bot do not affect others
• Beginners are advised to start with 1-2 bots, then gradually increase as you gain experience

Profit Calculation: Grid Profit vs Total Profit/Loss

Many newcomers get confused here. Let’s clarify the three key profit indicators:

Grid Profit

Grid profit is the realized profit sum from completed buy-sell cycles. Each time the bot completes a “buy low, sell high” cycle, that profit is added to grid profit.

Example: The bot buys BTC at $60,000 and sells at $61,000, earning $1,000 profit. This $1,000 is part of grid profit.

Unrealized P&L

This is the profit or loss from open, unclosed positions. When the current market price differs from your average position cost, unrealized P&L appears.

Example: Holding BTC bought at $60,000, current price is $59,500, resulting in a -$500 unrealized loss.

Total Profit/Loss

Total P&L = realized profit (grid profit) + unrealized P&L

This reflects the actual amount you will receive when the bot is terminated. Sometimes, you see positive grid profit but overall total P&L is negative — usually because unrealized losses outweigh realized gains.

Current P&L

Current P&L = realized profit + unrealized P&L - profits already withdrawn

This shows the real-time status, including profits you’ve already taken out.

Tip: When evaluating bot performance, focus mainly on “Total P&L,” as it most accurately reflects the final outcome upon stopping the bot.

Liquidation Risk and Capital Protection

When Will a Position Be Liquidated?

When your maintenance margin ratio (MMR) reaches or exceeds 100%, the position will be automatically closed.

In simple terms: your invested capital acts as a “safety cushion.” As losses eat into this cushion, reaching the critical point will trigger forced liquidation to protect system stability.

Maximum Possible Loss

The maximum loss you can incur with a grid bot is your initial invested capital. It will not exceed this amount because losses within the bot do not impact your other accounts or positions.

How to Reduce Liquidation Risk?

1. Do not invest more than you can afford to lose
2. Set your price range reasonably based on market volatility
3. Consider adding extra margin to your positions as a risk buffer
4. Regularly monitor your bot’s status

Margin Operations: Adding and Withdrawals

Adding Margin (Increasing Investment)

You can go to the bot’s detail page and click “Invest More” to add extra margin. The added margin will be used to:

• Maintain existing positions
• Pay trading fees
• Improve risk resilience

Note: Adding margin affects the calculation of take-profit and stop-loss levels. Here’s an example:

Case Study:

1. Created a bot with an initial investment of 80 USDT, added 20 USDT, set TP/SL at 20%/20%
2. Total investment becomes 100 USDT; TP/SL triggers at ±20 USDT
3. The bot realizes a profit of 15 USDT, you withdraw 16 USDT (15 from profit, 1 from added margin)
4. After withdrawal, investment reduces to 99 USDT; TP/SL adjusts to ±19.8 USDT
5. You add 81 USDT margin, total investment becomes 180 USDT; TP/SL adjusts to ±36 USDT

Core logic: TP/SL ratio × current investment = trigger point

Withdrawing Profits

You can withdraw realized profits via the bot’s detail page → “Withdraw.”

Withdrawal Limits:

• Max withdrawable amount = realized profit + added margin + remaining margin (minimum of these)
• Initial investment must always remain within the bot; cannot be withdrawn

Withdrawing margin also affects TP/SL levels, calculated as above.

What Happens When Market Price Exceeds the Set Range?

If the market price moves outside your preset range, the grid bot will:

1. Keep existing open positions: no automatic closing
2. Pause new order placement: no new orders outside the range
3. Wait for price to return: once back within range, the bot resumes placing orders

You can also manually stop the bot and reset parameters based on new market conditions. This design prevents the bot from being trapped in extreme行情, giving you more strategic flexibility.

Common Troubleshooting

Why Can’t I Create a Grid Bot?

Possible reasons:

1. Insufficient funds: your USDT balance is below the minimum required
2. Parameter errors: price range, grid number, or other settings exceed limits
3. Account restrictions: security restrictions or trading limits

Check these points carefully. If issues persist, contact support with a ticket.

Why Are the Number of Orders Not Equal to My Grid Count?

In highly volatile markets, the bot may fail to place all planned orders due to rapid price movements beyond your set range. To address this, the platform uses dynamic order mode: once the price returns within range, the bot automatically places missing orders, maximizing capital utilization and profit potential while reducing liquidation risk.

Can Experience Funds or Fee Deduction Coupons Be Used for Grid Bots?

No. Experience funds or fee coupons cannot be used for grid bot trading. All costs must be paid with real USDT.

What Is the Risk Limit Level?

The grid bot only trades within the Level 1 risk limit of the selected trading pair. For example, BTCUSDT grid’s maximum position value will not exceed the Level 1 risk limit (usually 2,000,000 USDT).

If a new order would exceed this limit, the bot pauses placing new orders until the position value drops below the threshold.

When Will the Bot Automatically Shut Down?

The bot may shut down automatically in these cases:

1. Profit target reached: stop-profit level triggered
2. Stop-loss triggered: loss exceeds set threshold
3. Position liquidated: margin ratio exceeds 100%

Why Are Some Orders Not Executed When Price Reaches Them?

In neutral mode, all orders require sufficient margin to execute. Orders are initially “open positions” and only close when an opposite order is filled.

If your account lacks sufficient margin, reverse orders may not execute. Regularly check your available margin and ensure sufficient funds.

What Is Margin Mode?

The grid bot uses:

• Margin mode: full position margin (using all available funds)
• Position direction: single-direction (long or short), except in neutral mode

Each bot’s investment and P&L are isolated; they cannot share or offset with others.

Quick Start Checklist

Before launching your first grid bot, ensure:

• [ ] KYC verification completed
• [ ] Sufficient USDT funds in your account
• [ ] Selected supported trading pair and contract
• [ ] Chosen appropriate trading mode based on market
• [ ] Price range set reasonably within limits
• [ ] Grid number between 2-400
• [ ] Investment amount within suggested range
• [ ] You understand TP/SL mechanisms
• [ ] You have assessed your maximum tolerable loss (initial investment)

Master these key concepts and parameter limits, then confidently start using the grid bot to capture every profit opportunity in the volatile crypto market.