Grid Trading
Automated strategy placing buy and sell orders in a grid around current price.
Grid trading is an automated trading strategy placing a series of buy and sell orders at equal intervals ("grid") above and below the current price — earning from oscillations in sideways markets.
How it works:
•Define upper and lower price range (e.g. $25,000 – $35,000)
•Divide into N levels (e.g. 10 levels = grid at $1,000 intervals)
•Bot automatically:
- Buys when price falls to grid level
- Sells when price rises to next grid level
- Profits from each "zig-zag" oscillation
Ideal market for grid:
•Sideways/ranging market without clear trend
•Volatile but without breakout
•ETH $1,800-$2,200 range = ideal for grid
Risks:
•Trending market — if BTC starts strong uptrend, your sell orders sell too early
•Downtrend — you buy cheaper and cheaper, accumulating losses
•Capital lock-up — capital tied in strategy
Where: Binance Grid Trading bot, OKX Grid Bot — built directly on exchanges.
Recommendation: Use grid on well-known pairs (BTC/USDT) with clearly defined range.