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Grid Strategy Creation Guide
Grid strategy is a powerful tool that can capitalize on market fluctuations within a predetermined price range. A grid strategy sets multiple buy and sell orders to automatically buy low and sell high for profit.
How do we create a grid strategy on DeGate? Let's work through a guided example below.
Let's assume that the ETH price is 1303 USDC. Let's choose the ETH/USDC trading pair to create a grid.
- Enter price range. In this example we will set a grid in the range of 1200 - 1400 USDC
- Enter Initial Allocation (the total amount you want to invest). In this example, we'll allocate 97 ETH, the system will automatically calculate the equivalent amount in USDC
- Set grid density: let's set the number of grids to 200, the system will automatically calculate the quantity per grid.
After successfully creating the grid strategy, the DeGate system will set multiple buy and sell limit orders within the price range.
The grid robot will continuously buy low and sell high within the set price range to automatically generate profits, as illustrated in the diagram below:
After completing one buy low and sell high cycle, you will profit 1 USDC.
For each grid strategy, in this case the ETH/USDC grid strategy example above, please ensure that the current market price is within the range you set (1200-1400), otherwise, the grid strategy will no longer generate profits.