What is Strategy Trading?

BYDFi provides automated trading tools to help users automatically place and execute orders by setting parameters such as price ranges, adopting different strategies to buy low and sell high within a certain range, or investing at a specified price and range. Take Profit and Stop Loss. Currently, we support Grid strategies, and we will be launching Martingale and DCA strategies in the futures, so please look forward to it.

What is grid trading?

Grid trading is a kind of strategy trading. BYDFi provides free strategy trading tools to help users automatically buy low and sell high within a pre-determined price range to make profits. As the price rises and falls within the range, the user can arbitrage repeatedly in the process. This strategy is suitable for more volatile market conditions, where unilateral market conditions carry some risk. BYDFi now supports both spot and futures grid trading.

What are the advantages of grid trading?

Through grid trading, users can trade more rationally. Depending on the actual situation, the grid trading robot will execute a series of buy/sell orders according to the set grid range within a certain price oscillator to realize low buy and high sell. Since the strategy robot automatically trades according to pre-set parameters, users can eliminate the influence of counterparties, thus avoiding unnecessary losses due to the influence of FOMO (Fear of Missing Opportunities), FUD (Fear, Hesitation, and Doubt), Greed, and Expectations on decision-making.

Introduction to Grid Types

Long Grid: Enter long at the time of creation, and take profit by going long when the price goes up. Suitable for volatile market conditions with rising prices.
Short Grid: Enter short at the time of creation and take profit by going short when the price goes down. Suitable for volatile market conditions with falling prices.
Neutral Grid: Short position at the time of creation, open long position with rising price and close long position with falling price; or open short position with falling price and close short position with rising price.
Close out on termination: When a grid strategy is terminated, the corresponding contract position will be closed out at the market price.

Related Terms

Price Range: Consisting of pre-set high and low prices, the strategy robot will help the user to buy low and sell high when the price range fluctuates.
Grid Quantity: Also known as the "grid number", the price range is divided equally into corresponding shares for the strategy to place orders.
AI Strategy: Suggested price ranges based on historical data back-testing for reference only.
Manual Creation: Users can customize the maximum price, minimum price and number of grids.
Trigger Price: When the market price reaches the pre-set price, the grid will be activated.
Take Profit/Stop Loss Price: The strategy will be terminated when the market price reaches this preset price.
Equal Spread Mode: The spreads of each grid are equal (e.g. 100, 200, 300, 400).
Profit per Grid: Spread per Grid * number of orders per grid.
Grid Profit: The sum of the profit of each grid.
Floating loss: (current price - average bid price) * current position size
Total Profit: Grid Pair Profit + Floating Profit/Loss
Annualized Payback Rate (APYR): Total Profit / Invested Funds / Days of Operation * 365 * 100%.
Investment Amount: the amount of money invested when the grid strategy is activated.

Futures Grid is currently only available on BYDFi APP, click to download.

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