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How to set up a Grid strategy

How to set up a Grid strategy

You can use the Grid Trading strategy to buy low and sell high. Let’s use USDT/TKX as an example. Suppose your strategy parameters are set as below:
  • Upper price: 60,000 TKX
  • Lower price: 40,000 TKX
  • Number of grids: 5
  • Mode: Arithmetic
  • Amount invested: 10,000 TKX
  • Current price of USDT/TKX: 50,000 TKX
The price structure of this strategy will be placed at 60,000 TKX, 56,000 TKX, 52,000 TKX, 48,000 TKX, 44,000 TKX, and 40,000 TKX according to the parameters you set.
TKX Spot Grid Trading uses normal grids. Orders are placed from the top grid to the bottom grid. When a buy order is filled, a sell order will be placed on the grid above it. As the upper price is set at 60,000 TKX, the grid strategy will begin by placing a buy order at 56,000 TKX. This buy order price is higher than the current price (50,000 TKX), so in theory, it will be immediately filled. After the 56,000 order is filled, a new sell order will be placed at 60,000 TKX. When the buy order at 52,000 TKX is filled, a sell order of 56,000 TKX will be placed accordingly and reaches the 48,000 TKX grid. As the current price is 50,000 TKX, the buy order at 48,000 cannot be filled, therefore no orders will be placed at 52,000 TKX. Similarly, the buy orders at 44,000 and 40,000 TKX will not be filled.