Grid bot

This guide explains the Grid bot thoroughly: what it does, what every control you set means, and which protections you need in place before the bot runs. An explanation this long does not fit inside the app, so it lives here.

For a short overview of the bots in general, see Automation: Grid and DCA.

1. In short

The Grid bot places a ladder of buy and sell orders across a price range you define. Each time price drops to a level, the bot buys; each time it rises to the level above, the bot sells and takes the difference as profit. As long as price keeps moving back and forth inside the range, this buy-sell cycle repeats.

Two things worth understanding from the start:

A grid profits from price oscillation, not from trends. Choosing the right range matters more than the number of levels.
The biggest grid risk is price leaving the range. That is why the protections in section 5 are part of building the bot, not an afterthought.

2. Direction

Long (default). Buy on the way down, sell on the way up, inside your range. The standard mode for most conditions.
Short. The reverse: sell as price rises, buy back as it falls. Suitable when you judge the market to lean weaker inside the range.
Neutral. Holds both sides at once. One note for Binance: this mode uses account-wide hedge mode, not per pair, so deploying requires a futures account already in hedge mode or fully clean of positions and orders.

3. Building the range and levels

Risk level. Your starting point: range width (derived from ATR, a measure of market volatility), grid density, and risk limits move together. Conservative is wider and calmer, Aggressive tighter and more active. Everything remains adjustable individually afterwards.
Range Low and Range High. The lower and upper bounds where the grid works. You can use a range built automatically from ATR, or write your own.
Grid count. The number of levels inside the range. More levels means more frequent trades with thinner profit per grid. If the gap between levels falls below trading fees, the app warns you to widen the range or reduce the count.
Spacing. How the distance between levels is computed. Geometric: every level sits the same percentage apart, so profit per grid is a single number and risk is even across the range; this is the industry default. Arithmetic: every level sits the same dollar amount apart, so the percentage is larger near the bottom and smaller near the top; profit per grid becomes a range and the risk is asymmetric. Spacing locks after deploy, and the trailing options are not yet available for arithmetic.

4. Capital and allocation

Capital. The funds allocated to this bot, separate from your other balance. The app shows the per-level split and rejects configurations that fall below the exchange’s minimum order size.
Allocation mode. How capital is split across levels. Equal splits evenly and suits most users. Martingale weights capital toward the worsening side, which means more aggressive averaging and deeper drawdown when the range breaks. Custom multiplier lets you set your own per-level multiplier between 1.05 and 2.0.

5. Protections

This section must be configured. Capital protection is the baseline of a healthy bot, not an optional extra.

Stop loss. A loss limit for the whole bot, measured against capital. When touched, the bot closes everything and stops.
Take profit. An optional profit target for the whole bot. If set, the bot closes everything and stops once total profit reaches this percentage of capital.
Max Drawdown Stop and Daily Loss Limit. Additional brakes that stop the bot when equity decline or daily losses touch the limits you set.
Capital lock. A maximum exposure cap for this bot, so averaging or grid extension never uses more than you are willing to commit.

6. Advanced options

Start trigger price. An optional price the bot waits for before placing any orders. Leave it empty to start immediately. If set, the bot waits until price touches this level, then goes to work.
Trailing stop. An optional profit lock. The bot tracks its equity peak; once profit reaches the percentage you set, the feature arms, and if equity then falls back by that percentage from the peak, the bot closes everything and stops. Unlike the stop loss, which measures losses against capital, the trailing stop only acts after the bot is in profit.
Trailing up (long grids only). When price breaks one interval above the top of the range, the bot extends the grid upward by adding new levels, up to the count you allow, so it does not sit idle above the range. Each extension uses additional reserve capital, checked against your balance and per-bot limits at deploy.
Trailing down (long grids only). The reverse: extending the grid downward when price breaks below the bottom of the range. This is averaging down, adding capital as price falls, which makes it the riskiest option. To use it, capital lock and Max Drawdown Stop must be active, and you set a floor price as the absolute limit of how deep the bot may add levels. You also choose the stop-loss behaviour during extension: Fixed keeps your maximum loss locked at the original level and is safer, while Follow down deliberately widens the maximum loss so the new lower levels can fill.

7. Backtest and deploy

Before running, you can test your settings with a backtest against the same pair’s historical data, straight from the builder. The result helps judge whether the range and level density make sense, though past performance does not guarantee future results.

Deploy saves the bot as a draft first. It only starts working after you press Activate in the bot list, so there is always one deliberate step between building and running. Once active, a bot can be paused, resumed, stopped, or closed at any time.

8. Commonly misunderstood

A grid is not a passive profit machine. It executes the rules you built. The wrong range makes the bot buy all the way down, or sit idle entirely.
More levels does not mean more profit. Levels packed too tightly let fees eat the profit per grid.
Price leaving the range is not a system failure. It is a scenario you plan for from the start, through the stop loss, the breakers, and your choice of direction.

9. Risk

Crypto futures trading carries high risk, including the possibility of losing part or all of your capital. The bot executes the rules you set; it does not guarantee results. Understand what each control above does before adding capital, and start with a size that does not cost you sleep.