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Introduction to Spot Grid Upward Adjustment Function

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What is the Spot Grid Trading Upward Adjustment Function?

What is the upward adjustment function?

By enabling the upward adjustment function, the spot grid can automatically adjust the grid range based on rising market prices, thereby avoiding profit limitations caused by prices breaking through previously set ranges. Once activated, the highest and lowest prices of grid orders will automatically adjust as the asset price increases, allowing you to continue executing the grid strategy in a new range after the price breaks through the upper limit of the grid, achieving higher profits.

Specifically, the upward adjustment function will raise the grid range when the price exceeds the sum of the highest price and the grid price difference. At this point, the robot will cancel the buy order at the lowest price point and place a new buy order at the previous highest price. If the price breaks through the new highest price and the grid price difference again, the robot will repeat this process, continuously adjusting the grid upward.

 

Case Demonstration of Ordinary Grid and Grid with Upward Adjustment Function

How the Upward Adjustment Process Works, Illustrated with the BTC/USDT Trading Pair

Assuming Trader A creates a spot grid strategy based on the following parameters:

  • Trading Pair: BTC/USDT
  • Grid Mode: Arithmetic
  • Price Range: 50000-70000 USDT
  • Number of Grids: 10
  • Activation Price of Strategy: 63200 USDT
  • Invested Capital: 70000 USDT

Initial Positioning:

  1. The system will calculate the prices for each grid level, ranging from 50,000 USDT to 70,000 USDT, with increments of 2,000 USDT (i.e., 50,000 USDT, 52,000 USDT, 54,000 USDT, up to 68,000 USDT, and 70,000 USDT).
  2. Based on the activation price of the strategy and the invested capital, buy orders will be placed at the grid prices above the activation price (excluding the highest price). In this case, 3 units will be bought.
  3. The 3 units purchased will have sell orders placed at the prices one grid level higher. In this example, sell orders will be placed at 70,000 USDT, 68,000 USDT, and 66,000 USDT.
  4. Simultaneously, buy orders will be placed at the grid prices below the activation price. In this case, buy orders will be placed at 50,000 USDT, 52,000 USDT, 54,000 USDT, 56,000 USDT, 58,000 USDT, 60,000 USDT, and 62,000 USDT.

Running the Strategy:

When the price drops below 62,000 USDT, the buy orders will be filled, and a sell order will be opened at the nearest upper level (64,000 USDT). Conversely, if the price rises above 66,000 USDT, the sell order at 66,000 USDT will be executed, and a buy order will be opened at the nearest lower level (64,000 USDT).

Exceeding Price Range:

When the market price exceeds the preset price range, the strategy will pause order execution. Orders will only be executed again when the price falls back within the price range.

 

Using the Grid Trading Move-Up Function

How the Move-Up Process Works, Illustrated with the BTC/USDT Trading Pair

Assume Trader A has created a spot grid strategy based on the following parameters:

  • Trading Pair: BTC/USDT
  • Grid Mode: Arithmetic
  • Price Range: 50,000-70,000 USDT
  • Number of Grids: 10
  • Activation Price of Strategy: 63,200 USDT
  • Move-Up Price: 80,000 USDT

Initial Range Operation

When the market price is within the range of 50,000-70,000 USDT, the grid strategy operates normally.

Grid Move-Up

  1. First Move-Up: If the market price exceeds the sum of the highest price and the grid interval (70,000 USDT + 2,000 USDT = 72,000 USDT), the robot will adjust the grid upwards. At this point, the robot will cancel the buy order at the lowest price point (50,000 USDT) and place a new buy order at the previous highest price of 70,000 USDT.
    1. The new price range will be: 52,000-72,000 USDT
  2. Second Move-Up: If the price again breaks through the new highest price plus the grid interval (72,000 USDT + 2,000 USDT = 74,000 USDT), the robot will repeat this process, continuously adjusting the grid upwards.
    1. The new price range will be: 54,000-74,000 USDT
  3. Following the same logic until the grid range reaches: 60,000-80,000 USDT

Stop Move-Up

When the market price surpasses 80,000 USDT, the grid will stop moving up.

Price Pullback After Move-Up

If the market price pulls back and falls below the current new price range, the grid will not move down but will continue to operate within the current range.

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