Spot Grid is a trading strategy based on price movements. It places buy and sell orders at predefined price levels within a set range. Orders are automatically executed when the market price reaches these levels. While the strategy aims to capture profits from price fluctuations, it may also result in losses, especially in trending markets.
How Do Bybit Grid Bots Work?
You can set a series of buy and sell orders in either price direction, creating a trading grid of orders waiting to be triggered. When the Spot price hits your preset target, a buy order will be executed, and a sell order will be placed above on the next grid. When the price rises again to the next grid, the sell order will be executed, allowing you to profit from the price difference.
Example
Suppose Trader A creates a Spot Grid Bot strategy based on the following parameters:
- Spot pair: BTC/USDT
- Market price: 54,000 USDT
- Upper price: 65,000 USDT
- Lower price: 45,000 USDT
- Number of grids: 5
- Intervals: 4,000
- Total investment: 23,610 USDT
The system will calculate the actual amount of base token required to place an order, and then automatically buy the corresponding base token needed for the Spot Grid Bot strategy by placing market orders.
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P&L Calculations (Spot Grid Bot)
When the Spot Grid Bot strategy is successfully activated, the orders will be placed as follows:
Scenario One: In a Volatile Market
When the BTC price hits 53,000 USDT, the buy order will be executed, and the sell order at 57,000 USDT will be placed above the next grid. When the price rises to 57,000 USDT, the sell order will be executed, and a buy order at 53,000 USDT will be placed — that is, a grid trade is now completed and profits are made from the price difference.
Scenario Two: In a One-Sided Market
When the BTC price rises to 57,000 USDT, no buy/sell orders will be triggered. In the one-sided market, the BTC price rises to 61,000 USDT, which will trigger a sell order and place a buy order at 57,000 USDT.
If the price continues to rise and reaches 65,000 USDT, a sell order will be placed at 65,000 USDT, and a buy order placed at 61,000 USDT.
Your grid bot will only operate in the upper and lower price bounds that have been configured. When the BTC price rises above 65,000 USDT or falls below 45,000 USDT, the strategy will be suspended and no new order will be placed by the grid bot.
If the market price falls outside of the price range, you can choose either to close the Spot Grid Bot strategy to get the most out of your funds, or wait for the price to return to the range you’ve set, at which time the strategy will resume.
Notes:
— Entry order will be bought at the market price, to ensure the successful execution of the grid strategy.
— Spot Grid Bot will be channeled directly through your Funding Account.
Risk Warning
Trading bots involve significant risks and are not suitable for all investors. Before using Spot Grid or any automated trading strategy, you should carefully assess whether you fully understand how the strategy works and whether you can afford to take the high risk of losing your money.
- Market volatility risk: Trading bots operate based on predefined parameters and may perform poorly in highly volatile or rapidly trending markets.
- Strategy failure risk: A grid or algorithmic strategy may not adapt to sudden market reversals, low liquidity conditions, or unexpected price gaps, which may lead to significant or total losses.
- Technical and execution risk: Trading bots rely on system stability, connectivity, and exchange infrastructure. System outages, API delays, or execution errors may affect performance.
- Not protected: Trading bot usage and related cryptoasset investments are not covered by the Financial Services Compensation Scheme (FSCS) or any other investor protection scheme.
- Regulatory status: Cryptoasset trading services are not regulated by the Financial Conduct Authority. You should only use trading bots if you fully understand the risks involved.
- AI parameters are derived from historical backtesting and do not guarantee future returns.
- Some Trading Bots available on the platform are created by other users and not by Bybit. Bybit only provides the platform for strategy deployment and execution.