What is Spot Grid trading?
Spot Grid trading is a trading strategy that seeks profit from market fluctuations by positioning buy orders and sell orders. The system will place buy orders when the price drops and sell orders when the price climbs over the base currency at set intervals around the set price to profit from the market trends.
How to Create Spot Grid trading?
Step 1: Log in to your KuCoin account and click Trading Bot
Step 2: Click "Spot Grid" to create a bot.
Coin list - Trading Pairs list.
Leaderboard - Daily profits & 7-day profits list.
Hot - The popular trading pairs list.
Step 3: Select the model you'd prefer to start a grid trading bot.
KuCoin Trading Bot provides 2 modes to create spot grid trading. The one is “Auto”, and another way is “Customize”.
3.1 Create Spot Grid trading via "Auto" Parameters
a. Since Spot trading is chasing volatility, higher volatility will bring higher returns. The greater the volatility, the higher the profit.
b. As you can see, the Price Range and the Number of Placed Orders will be set automatically, you just need to enter the “Total Investment”, which is the value of funds you plan to invest in the Spot Grid trading.
If there is an insufficient balance in your trading account, you are advised to transfer the balance first.
c. Tap “Create”， check and confirm the order confirmation, then tap “Confirm” to run the trading bot.
3.2 Create Spot Grid Trading via “Customize" Parameters
a. Tap “Customize Parameters”, choose a trading pair, and set the ‘Low. Price and ‘High Price’. The Low. Price is the lowest buying price. If the token price goes lower than that, the Spot trading bot will be stopped until the price goes back to the range. Same for High. Price, if the token price goes over your setting, no more orders will be executed. So if you want to maximize your profits, you’d better try to ensure that the token price will not exceed your price range in the next few days. When setting the grid, try to predict the highest and lowest prices that the token may reach soon based on historical trends.
b. Set the “Number of Placed Orders”, and enter the “Total Investment”.
c. Tap “Create”, and check and confirm the order confirmation, then tap “Confirm” to run the trading bot.
d You can also set the entry price, stop price, and take the profit price via advanced settings.
When the Grid trading is executed, the system will open a position at the current price. At the same time, the corresponding buy and sell orders are placed on the grids. When the price drops to the preset buy price, the system will execute the buy order and place a sell order above the grid. When the price rises again, the sell order will be executed. A buy order will be placed on the grid below. By buying at a low price and selling at a high price, users can profit in the volatile market.
Tips for using KuCoin Spot Grid trading
The KuCoin Spot Grid performs best in the volatile market. When the price fluctuates within the range you set, the grid trading system executes the preset buy and sell limit orders within a range to obtain benefits from price fluctuations.
The more grids you set, the more orders can be executed. However, the corresponding handling fee will also increase due to frequent transactions, and the profit will also be affected.
In a nutshell, a reasonable price range is key to ensuring whether your strategy can gain profit. If the grid setting is unreasonable, the market price is outside of the preset price range, and you won’t be able to get profit from the orders