Grid trading bot
Also called: grid bot · spot grid · futures grid
Definition
A grid trading bot is an automated tool that places a ladder of buy and sell limit orders within a price range, profiting from repeated moves up and down.
How grid trading bot works
You choose an upper price, a lower price and the number of grids. The bot splits the range into levels and places buy orders below the current price and sell orders above it. Each time the price drops to a level, it buys; each time it rises to the next level, it sells that slice for a small profit.
Grid bots work best in sideways, volatile markets. In a strong trend, they struggle: if the price climbs above the range, the bot has sold everything and sits in stablecoins; if it falls below, it holds coins bought at higher prices and shows an unrealised loss. Futures grid bots add leverage and liquidation risk.
Most major exchanges offer spot and futures grids with suggested settings, often based on recent volatility. Before starting, check the fee per trade, because grids trade often and small profits per grid can be eaten by fees. More grids means more trades with smaller profits each.
Example
Suppose ETH trades at 3,000 USDT and you set a spot grid from 2,700 to 3,300 with 6 grids, so the levels are 100 USDT apart. Each grid trades 0.1 ETH. If the price dips to 2,900 and returns to 3,000, the bot buys 0.1 ETH at 2,900 and sells at 3,000, making 10 USDT before fees. With a 0.1% fee per side, fees are about 0.29 plus 0.30, leaving roughly 9.41 USDT. Twenty such round trips in a month would earn about 188 USDT.
Common mistakes
- Setting a narrow range in a trending market so the price quickly leaves the grid.
- Using too many grids so each profit is smaller than the trading fees.
- Running a leveraged futures grid without checking the liquidation price.
Learn and practise
Try it on an exchange
OKX offers this. Sign up through our link and the code below is applied.
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Do grid trading bots make money?
They can profit in ranging markets with enough volatility. In strong trends, especially downtrends, a grid can show losses or sit idle outside its range.
What is the difference between spot grid and futures grid?
A spot grid buys and sells real coins with no leverage. A futures grid trades contracts, can go long or short and can use leverage, which adds liquidation risk.