Grid Trading Concepts¶

Grid trading is a strategy that places buy and sell orders at predefined intervals above and below a set price. The goal is to capitalize on market volatility by buying low and selling high at different price points.

Grid Spacing Types¶

Arithmetic Grid¶

In an arithmetic grid, price levels are spaced equally. The distance between each level is constant.

Example — Price at $3,000 with $50 spacing:

Level	Price
5	$3,100
4	$3,050
3	$3,000 (current)
2	$2,950
1	$2,900

Best for assets with stable, linear price fluctuations.

Arithmetic Grid

Geometric Grid¶

In a geometric grid, price levels are spaced proportionally by a percentage. Intervals grow or shrink exponentially.

Example — Price at $3,000 with 5% spacing:

Level	Price
5	$3,280
4	$3,125
3	$2,975
2	$2,835
1	$2,700

Best for assets with significant, unpredictable volatility and exponential price movements.

Geometric Grid

When to Use Each Type¶

Criteria	Arithmetic	Geometric
Market behavior	Ranging, stable	Trending, volatile
Level distribution	Uniform spacing	Wider at extremes
Risk profile	Lower per trade	Adapts to swings

Grid Strategies¶

Simple Grid¶

Independent buy and sell grids. Each grid level operates standalone — profits from each level are independent.

Buy orders placed below the current price
Sell orders placed above the current price
When a buy fills, a corresponding sell is placed one level above
When a sell fills, a corresponding buy is placed one level below

Grid Trading Cycle

Hedged Grid¶

Dynamically pairs buy and sell levels, balancing risk and reward. Better suited for higher volatility markets where coordinated position management is needed.

Grid Level Lifecycle¶

Each grid level follows a state machine through its trading cycle:

stateDiagram-v2
    [*] --> READY_TO_BUY_OR_SELL: Initial state
    READY_TO_BUY_OR_SELL --> WAITING_FOR_BUY_FILL: Buy order placed
    READY_TO_BUY_OR_SELL --> WAITING_FOR_SELL_FILL: Sell order placed
    READY_TO_BUY --> WAITING_FOR_BUY_FILL: Buy order placed
    WAITING_FOR_BUY_FILL --> READY_TO_SELL: Buy filled
    READY_TO_SELL --> WAITING_FOR_SELL_FILL: Sell order placed
    WAITING_FOR_SELL_FILL --> READY_TO_BUY: Sell filled
    READY_TO_BUY --> READY_TO_BUY: Waiting for price

States:

State	Description
`READY_TO_BUY_OR_SELL`	Initial state — level can accept either a buy or sell order
`READY_TO_BUY`	Level is ready for a buy order
`WAITING_FOR_BUY_FILL`	Buy order placed, waiting for execution
`READY_TO_SELL`	Buy filled — level is ready for a sell order
`WAITING_FOR_SELL_FILL`	Sell order placed, waiting for execution

Asymmetric Order Sizing (Buy/Sell Ratio)¶

By default, the bot uses the full computed quantity for both buy and sell orders (buy_ratio: 1.0, sell_ratio: 1.0). You can override this to create asymmetric strategies via the buy_ratio and sell_ratio parameters.

Use case — Crypto accumulation in a bull market: Set sell_ratio: 0.5 to sell only half the quantity on each sell cycle. The surplus crypto stays in your free balance, letting you accumulate over time while still capturing grid profits.

Parameter	Effect
`buy_ratio`	Applied to all buy orders (initialization + paired buys after a sell fill).
`sell_ratio`	Applied to all sell orders (initialization + paired sells after a buy fill).

Both ratios accept a value between 0 (exclusive) and 1.0 (inclusive). A value of 1.0 means the full quantity — identical to default behavior.

How it works:

At grid initialization, the base order size is total_balance / num_grids / price. The ratio is applied: base_size * ratio.
On a buy fill, the paired sell quantity is filled * sell_ratio.
On a sell fill, the paired buy quantity is filled * buy_ratio.
Surplus crypto (the portion not sold) remains as free balance.

Note

With a ratio below 1.0, order sizes compound down across cycles (e.g., with sell_ratio: 0.5: 1.0 → 0.5 → 0.25 → …). This is by design for accumulation strategies.

Configuration¶

Configure grid strategy in your config.json:

{
  "grid_strategy": {
    "type": "simple_grid",
    "spacing": "geometric",
    "num_grids": 8,
    "range": {
      "top": 200,
      "bottom": 250
    },
    "buy_ratio": 1.0,
    "sell_ratio": 0.5
  }
}

See the full configuration reference for all available parameters.