Due to the market reasons, when creating a spot grid strategy, some spot trading pairs because of poor market orderbooks and low liquidity, which may cause the grid strategy to fail to be created, or cause the strategy to terminate abnormally after successful creation.
During the operation of the grid strategy, if the spot trading pair encounters unpredictable abnormal situations such as suspension or delisting, the grid orders will be automatically cancelled and the strategy needs to be terminated manually.
If the moving grid (moving up) is not set, when the market price exceeds the highest price in the grid range, the grid will no longer continue to run. If the price continues to rise and does not return to the grid range, it is easy to miss the rising market opportunity due to the penetration of the grid.
If the spot grid strategy has setted advanced parameters , then the trigger conditions can be modified before the strategy triggered, the take-profit and stop-loss conditions can be modified before termination, and whether to sell the Base Currency can be modified before termination.
When the grid strategy is stopped, which cause by the take-profit or stop-loss condition is triggered or manually stopped, the Base Currency will be sold at the market price. If the risk control system determines that it will bring huge risks, the sale of the Base Currency may failed and the system will transfer the spot coin back to the spot account.
If the spot grid strategy has seted price trigger condition, when the strategy is triggered, if the price at that time triggers the take profit or stop loss condition, the strategy will be terminated.
Thinking of the capital utilization rate, the spot grid strategy has the minimum investment amount required, which may not meet again after the grid moved up, resulting in the failure of the grid to move up.
During the process of moving up the grid, due to the cancellation of the lowest price order in the current interval, but the lowest price order in the current interval has been partially executed, which will result the new order does not meet the minimum order parameter requirements again, then the moving up will be failed. If the order is successful, the sell order will be placed according to the number of successful orders.
When you set an arithmetic spot grid, if the single grid yield rate is particularly small and you also set the move up grid function, after moving up to a certain price level, the single grid yield rate may be negative.
The closeer the spot grid price, the higher the amount of capital required (refer the minimum investment amount), and the more orders can be traded, but the trading fees will also increase due to frequent transactions, thus affecting the income. For beginners, it is recommended the single grid yield is around 1%.
If you have enabled ET to offset transaction fees in your spot assets, the fees generated from grid trading will be deducted using ET from your spot account.