News Detail

Strategy Trading

2024-03-25 18:18

Abstract: Set policy parameters, program automatically trades

What is strategic trading?

Strategic trading replaces subjective judgments with advanced mathematical models, and uses computer and network technology to select various “high probability” events from massive historical data that can bring excess returns to formulate strategies, greatly reducing the impact of investor sentiment fluctuations and avoiding irrational investment decisions in extremely fanatical or pessimistic market conditions.

Strategic trading can help you use programmatic trading intelligence to place orders, saving you time on the market and seizing market opportunities in real time, without missing opportunities to build positions, rise and fall points, and sell and buy. Suitable for most investors who pursue steady returns.

Grid trading strategy

Grid trading strategy is an automated strategy of buying low and selling high within a specific price range. Users only need to set the highest and lowest prices in the range, determine the number of grids to be subdivided, and then start running the strategy. Strategic accounting calculates the low buy high sell prices for each small grid, automatically places orders, and earns profits from market fluctuations.

What scenarios are suitable for grids?

1. Use parameters

The current excellent grid strategy is displayed on the strategy square. You can choose one of the excellent strategies according to your preferences, copy the strategy parameters, and input the investment amount and leverage.

2. Manual settings

Set parameters based on your own range judgment of volatile market trends.

Explanation of parameters for grid ordering:

Interval lowest price: When the market price is lower than the interval lowest price, the strategy will no longer execute the order operation.

Interval highest price: When the market price is higher than the interval highest price, the strategy will no longer execute the order operation.

Number of grids: The number of grids represents the number of divided hanging order cells in the oscillation interval. For example, if the interval is 100-400, the difference is equal, and the number of grids is 3, it is divided into three small areas: 100-200, 200-300, and 300-400.

Leverage: The leverage ratio used in trading strategies.

Initial investment margin: The amount initially invested in the grid strategy.

Equal difference grid: The difference in prices between two adjacent orders is equal (such as 1, 2, 3, 4)

Proportional grid: The ratio of prices for each adjacent order is equal (such as 1, 2, 4, 8).

Stop profit/stop loss price: When the market price reaches this level, the strategy automatically stops and closes the position at the market price.

Option to open bottom position when strategy is enabled: You can choose whether to open bottom position when strategy is enabled. For example, if opening multiple grids and selecting bottom positions, a certain number of positions will be opened in advance, and profits can be stopped when the price rises. The same goes for short selling.

Total investment: The scale of strategic funds after leveraging, with total investment=investment margin * leverage.

Stop mode: After the grid is turned on, positions will be opened when either an increase or a decrease passes through the grid. For example, if the current long position has no bottom position and the price rises above the grid line, the long position will be opened.

Estimated strong parity: The strong parity of the current position held.

Examples of Grid Transactions

Set parameters (using BTCUSD as an example)

Grid properties: making multiple grids

Lowest price in the range: 50000 USD

Maximum price in the range: 100000 USD

Number of grids: 50

Grid mode: equal difference

Levers: 2x

Initial deposit: 5000 USD

Whether to open bottom warehouse: Yes

When creating the strategy, the BTC/USD price is 60100 USD

Strategy operation

Phase 1- Initial Placing of Orders: The system will calculate the prices for each level of the strategy as 50000, 51000, 52000... 98000, 99000, 100000, and then place opening orders with double leverage at these prices. If the market depth is good, orders higher than the market price will be traded to open positions, and then place closing orders at higher levels.

So, after the strategy is activated, there are opening purchase orders for each price range of 50000-60000, and closing sales orders for each price range of 62000-100000.

Phase 2- Strategy Operation: If the market price drops below 60000, the buy order will be executed at that position, and the program will automatically place a sell order at the corresponding upper position (i.e. 61000 price range) in the small grid of 60000-61000. If the price rises, place a purchase order at the corresponding lower position after the sale is completed.

By cyclically placing orders and trading with market fluctuations, one can continuously earn volatile returns in the volatile market.

Kind reminder:

After the market price exceeds the highest/lowest price range of the grid, the program will no longer continue to operate. If the price continues to run unilaterally and does not return to the grid range, the position held at this time may suffer floating losses, and even have a strong level risk. So it is recommended to set stop loss prices at reasonable positions on both sides of the grid, in order to stop losses in a timely manner.

The funds invested after the grid is created will be isolated from the trading account and used independently in the grid strategy. So users need to pay attention to the risks that the transfer of funds may bring to the overall position in the trading account.

If the variety encounters unpredictable abnormal situations such as suspension or delisting during the operation of the grid strategy, the grid strategy will automatically stop.

If the grid is created and the margin is insufficient due to excessive floating losses, the grid strategy will be stopped by the system risk control. Please increase the deposit in a timely manner to maintain the normal operation of the grid.

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