Introduction to Trading Bot Modes

Contents

• Spot Grid
• Futures Grid
• Recurring Buy
• Smart Portfolio
• Arbitrage
• Iceberg Strategy
• TWAP Strategy

I. Spot Grid Trading

1. What Is Spot Grid Trading?

Spot grid trading automates buying low and selling high within a predefined price range. Orders are placed at incremental intervals (grids) above and below a base price.

Key Features:

• Price Range: Define upper/lower bounds.
• Grid Quantity: Number of orders within the range.
• Arithmetic/Geometric Grids: Choose equal price intervals (arithmetic) or ratios (geometric).

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2. Use Cases

Best for sideways or volatile bullish markets. Avoid bearish trends where prices breach lower bounds.

3. Setup Guide

1. Navigate to Trading Bot > Spot Grid.

2. Set Parameters:

   • Lower/Upper Price
   • Grid Quantity (e.g., 50 grids)
   • Investment Amount (e.g., 5,000 USDT)
3. Activate Bot: Funds are isolated for trading.

Sample BTC/USDT Grid:

• Range: 50,000–100,000 USDT
• Grids: 50 (arithmetic)
• Action: Buys at 60,000 USDT, sells at 61,000 USDT.

4. Risks & Notes

• Stop-Loss Recommended: Prevent losses if prices fall below the range.
• Fund Isolation: Invested funds are locked.

II. Futures Grid Trading

1. What Is Futures Grid Trading?

Automates futures contracts trading within a price range. Supports USDT-margined contracts with directional strategies:

• Long Grid: Bullish outlook.
• Short Grid: Bearish outlook.
• Neutral Grid: Balanced longs/shorts.

2. Setup Steps

1. Select Futures Grid in Trading Bot mode.

2. Configure:

   • Leverage (up to 5x)
   • Grid Quantity
   • Take-Profit/Stop-Loss

Example (BTC/USDT):

• Long Grid: 50,000–100,000 USDT, 2x leverage.
• Triggers: Buys at dips, sells at peaks.

3. Risks

• Liquidation Risk: High leverage demands cautious SL settings.
• Market Suspensions: Bot halts if asset is delisted.

III. Recurring Buy

1. Dollar-Cost Averaging (DCA)

Invest fixed amounts at regular intervals (e.g., daily/weekly) to average purchase prices.

How to Set Up:

• Choose assets (e.g., BTC, ETH).
• Set frequency/amount (e.g., $500 weekly).

Backtesting: APY calculated for past 2 years.

IV. Smart Portfolio

1. Dynamic Rebalancing

Automatically adjusts crypto allocations to maintain target ratios (e.g., 50% BTC, 30% ETH).

Modes:

• Proportional: Triggers when deviations exceed thresholds.
• Scheduled: Rebalances at fixed intervals.

Example:

• Initial: 5,000 USDT BTC, 3,000 USDT ETH.
• After BTC ↑50%: Sells BTC to restore 50/30 ratio.

V. Arbitrage Strategies

1. Types

• Funding Rate: Profit from perpetual swap spreads.
• Spot-Futures: Exploit price gaps between markets.
• Calendar Spread: Trade dated derivatives.

Tool Advantage: OKX’s auto-tracking reduces slippage.

VI. Iceberg Strategy

1. Slippage Prevention

Breaks large orders into smaller chunks (e.g., 100 BTC → 2 BTC/order).

Example: Buy BTC below 20,000 USDT with 0.1% price variance.

VII. TWAP Strategy

1. Time-Weighted Orders

Splits orders into intervals (e.g., 500 contracts every 20s) to minimize market impact.

Use Case: Buy 10,000 BTC contracts without spiking prices.

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FAQs

Q1: Which grid strategy suits a bullish market?

A: Spot/Futures Long Grids capitalize on upward trends.

Q2: How does Recurring Buy reduce risk?

A: DCA mitigates volatility by spreading purchases over time.

Q3: Can Smart Portfolio include stablecoins?

A: No—only volatile crypto pairs for rebalancing.

Q4: What’s the max leverage for Futures Grid?

A: 5x (adjust based on risk tolerance).