Contract Grid

What is a Contract Grid Strategy?

A Contract Grid strategy is an automated trading method that profits from market volatility by buying low and selling high within a preset price range. Users define:

  • Price range (upper and lower bounds)

  • Number of grids

  • Quantity per trade

The system then calculates price levels for each grid and automatically executes buy or sell orders as the market moves. The goal is to capture profits from every price swing between the grid levels.

Three Types of Contract Grid Strategies

1. Long Grid

Used when you expect prices to fluctuate upward:

  • Buy when the price falls to a lower grid level.

  • Sell at the next higher grid level.

2. Short Grid

Used when expecting a fluctuating downward trend:

  • Sell when the price rises to a higher grid level.

  • Buy back at the next lower grid level.

3. Neutral Grid

Used when expecting sideways movement:

  • Sells (opens short/closes long) above the initial market price.

  • Buys (opens long/closes short) below the initial market price.

  • No positions are held when the grid starts.

Example: Neutral Grid on BTCUSDT

Settings:

  • Grid Range: 40,000 – 60,000 USDT

  • Number of Grids: 5 (Arithmetic)

  • Quantity per Trade: 0.001 BTC

Calculated Grid Levels:

  • 60,000 (Sell)

  • 56,000 (Sell)

  • 52,000 (Sell)

  • 48,000 (Buy)

  • 44,000 (Buy)

  • 40,000 (Buy)

If the price drops to $47,000, the $48,000 buy order is filled, and a long position of 0.001 BTC is established.

How to Set Up a Grid Strategy

Platform Navigation

  • Web: Go to Futures → Contract Grid

  • App: Navigate via More → Contract Grid or Assets → Bot Account → Create

Grid Strategy

Core Parameters

1. Margin Mode

  • All contract grid strategies use Isolated Margin.

2. Grid Direction

  • Choose: Long, Short, or Neutral

Direction cannot be changed after creation.

3. Grid Price Limits

  • Define the upper and lower price boundaries.

  • No orders will be placed if the market moves outside this range.

4. Grid Types

Arithmetic Grid

  • Equal price intervals between grid levels.

  • Formula:

Price Difference=Upper Limit−Lower LimitNumber of Grids\text{Price Difference} = \frac{\text{Upper Limit} - \text{Lower Limit}}{\text{Number of Grids}}

Geometric Grid

  • Equal percentage price changes between grid levels.

  • Formula:

Price Ratio=(Upper LimitLower Limit)1/Grids\text{Price Ratio} = \left( \frac{\text{Upper Limit}}{\text{Lower Limit}} \right)^{1/\text{Grids}}

5. Number of Grids

  • Minimum: 2

  • Maximum: 300

  • Must meet minimum price difference per exchange rules.

6. Investment Amount

  • Set as a percentage of your available balance.

  • Once placed, it cannot be changed.

  • Determines the initial capital used.

Total Investment = Investment Amount × Leverage

7. Quantity per Order

Neutral Grid

Grids=Adjustment Factor×Investment Amount×Leverage/∑(Grid Prices)\text{Grids} = \text{Adjustment Factor} × \text{Investment Amount} × \text{Leverage} / \sum (\text{Grid Prices})

Long/Short Grid

A more complex formula based on:

  • Direction (1 for Long, -1 for Short)

  • Margin

  • Opening losses

  • Mark or trigger price

Adjustment Factor = 0.8

8. Leverage

  • Set according to contract risk limits.

Profit per Grid

Arithmetic Grid

  • Profit depends on grid spacing, entry cost, and fees.

  • Example:

    • Price range: 1,000–2,000

    • Grids: 10

    • Fee: 0.1%

    • Profit Range ≈ 5.05% to 9.79%

Geometric Grid

  • Profit depends on the compounded grid ratio.

  • Example:

    • Price range: 1,000–2,000

    • Grids: 10

    • Fee: 0.1%

    • Profit per Grid ≈ 6.97%

AI-Based Grid Parameters (Neutral Only)

  • Go to the [AI] tab to check the recommended parameters and enter your investment amount.

  • Once you've decided on the amount of margin you want to allocate to your grid trading strategy, click' Create' and confirm your grid order so that the system automatically places buy or sell orders at the preset prices. Please note that the AI-based parameters are set in a Neutral direction and in Arithmetic Mode by default.

AI-Based Grid Parameters

How AI Parameters Are Calculated

Price Bands

Upper Band=MA+BBM×Std Dev\text{Upper Band} = \text{MA} + \text{BBM} × \text{Std Dev}

Grid Count

Grid Count=(1+Buffer)×Upper−LowerATR\text{Grid Count} = (1 + \text{Buffer}) × \frac{\text{Upper} - \text{Lower}}{\text{ATR}}

  • Buffer = 20%

  • ATR Period depends on the term (7, 30, or 180 days)

Advanced Options

  • Trigger Price: Grid only activates when this price is reached.

  • Stop Price: The grid stops if the price hits this level.

  • Liquidate All on Stop: Closes all open positions at the market price when the stop is triggered.

Grid Termination Conditions

  • Manually terminated by user

  • Market hits the stop price

  • Insufficient margin

  • Position is forcibly liquidated or ADL-triggered

  • Order limit reached or exceeded

Troubleshooting Grid Failures

Grid setup may fail due to:

  • Too many grids (max: 10 active contract grids)

  • Order size exceeds limits

  • Position amount exceeds contract limits

  • The order quantity exceeds platform thresholds

Monitoring Grid Performance

To view running or past grids:

  • Click "Details" in the orders panel to access performance history and strategy insights.

Monitoring Grid Performance
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