🤖Grid Bot
Last updated
Last updated
What is a Grid Bot?
A Grid Bot is a program that can automate the buying and selling of perpetual futures contracts for users. It is designed to place buy and sell orders within a preset price range, either automatically using AI strategy or manually configured.
When the market price is higher or lower than the set price range, the contract grid can establish an equal interval grid in terms of arithmetic progression or geometric progression, forming a contract trading grid.
When the market is in a period of oscillation or consolidation, and the market price fluctuates within the given range, the grid bot's profit will be ideal now!
The grid bot strategy performs best in oscillating and narrow-range volatile market conditions.
NO FOMO: The grid bot can automate the execution of established trading strategies, avoiding the influence of trader emotions.
NO 24/7: It helps users conduct more scientific range arbitrage in oscillating markets, eliminating the need for real-time monitoring.
NO FUD: It reacts immediately to market fluctuations and automatically executes trading operations according to pre-set trading strategies, avoiding hesitation and missed opportunities.
JOJO's grid bot currently supports only neutral mode. A neutral strategy means the bot will place orders at the set prices when the grid is initiated. Whenever one order is triggered and executed, an opposing closing order will be immediately placed.
JOJO AI Strategy: One-click grid, intelligent recommendations. Currently, JOJO AI intelligently recommending grid bot parameters that are most suitable for the current market conditions. This is especially beneficial for novice users who are unfamiliar with grid bots. Input the investment amount to automatically create a grid. Additionally, JOJO will continuously iterate on this AI strategy and provide customized recommendations based on user data and earnings.
Extremely low risk: Grid trading can provide relatively stable returns, especially when prices fluctuate within a certain range, as it utilizes the upper and lower limits of price fluctuations. By establishing different levels of trading grids, investors can trade at different price levels in the market, thereby diversifying risks.
Double benefits with points: When using the grid bot for hedging and range arbitrage to achieve stable profits, users can also enjoy double benefits with JOJO activity points.
Using a grid bot requires users to set relevant parameters, including price range, grid quantity, order quantity, etc. Users also need to closely monitor market fluctuations and adjust parameters promptly to avoid losses.
The grid bot can be used for grid trading with every trading pair listed on JOJO.
Since JOJO adopts cross-margin, it means that each account can only open one grid/perpetual position for each trading pair. By flexibly configuring the JOJO main account + n sub-accounts, unlimited orders can be placed under the premise of risk isolation.
After placing an order with the grid bot, it is not possible to modify the price range, order quantity, leverage, or other parameters. It is necessary to cancel the order and place a new one to modify the parameters.
| No | Terms | Description | Formula |
|---|---|---|---|
1 | Price Range | The price range for placing grid orders, where the upper boundary must be greater than the lower boundary | |
2 | Arithmetic | Divide the price range from the lower bound to the upper bound using an equal price difference method. Each grid in the arithmetic grid has an equal price interval. | |
2 | Geometric | Divide the price range from the lower bound to the upper bound using an equal price ratio method. The price interval for each grid unit grows at a fixed ratio. | |
3 | Estimated Profit per Grid | Calculated and displayed in real-time | Arithmetic Profit: Maximum ROI = (Upper Bound - Lower Bound) / (Grid Quantity * Lower Bound) - User's maker fee * 2 Minimum ROI = (Upper Bound - Lower Bound) / (Grid Quantity * Upper Bound) - User's maker fee * 2 |
4 | Capital Invested | The amount of investment, which is the initial margin and must be less than or equal to the current available capital, and greater than the minimum investment amount required to start the grid | paperSize = Investment * 0.5 /（ initialMarginRatio * sum(orderPrice) ) Minimum Investment Amount = Minimum order amount * sum(orderPrice) * Initial Margin Ratio |
5 | Termination Price | When the latest price/mark price reaches this number, the grid will terminate immediately. This number must be greater than the upper boundary or less than the lower boundary of the grid. |
The difference between Arithmetic and Geometric
| Arithmetic | Geometric | |
|---|---|---|
Price Range | Fixed Amount Interval | Fixed Percentage Interval |
Suitable for | Relatively stable market conditions with small fluctuations (e.g., BTC ranging between $25,000 and $30,000) | Market conditions with high volatility or larger grid intervals (e.g., BTC price ranging between $15,000 and $30,000) |
Characteristics | Relatively simple, with a fixed price interval | Requires adjustment of percentage intervals based on market conditions |
Click on [Grid Bot] to access the grid bot trading interface. Users only need to input the investment amount below and click [Create] to create the strategy. The bot will automatically execute the strategy.
There are a few pre-set parameters optimized by our AI. Make sure your deposit aligns with the minimum investment requirement.
Please note that the AI strategy is updated once every hour, taking recommended parameters from the top CEX grid bots, intelligently recommending grid bot parameters that are most suitable for the current market conditions.
If you are using a grid trading bot for the first time, it is recommended to use the AI strategy of JOJO Grid Bot to help you define the grid bot parameters. You only need to choose the amount of capital you want to invest to create the grid trading bot.
At the same time, users can also manually set the stop-loss trigger. When the market price rises above the upper stop-loss limit or falls below the lower limit, it indicates that the market no longer follows the trend, and the grid bot will stop operating.
Adjust Leverage: Users can also click on the [50X] button to adjust the leverage multiplier of the grid bot.
Users can also choose to tailor your strategy by clicking on the [Manual] or [Edit] section in the image to enter the parameter settings.
Manual strategy is set based on your prediction of the market trend for the next period. There are three scenarios:
You assume that the current price of BTC/USDC is 26,606, with a default leverage of 20X. So you plan to invest 87 USDC into the grid bot.
If you predict that the market will continue to consolidate for the next period: The latest price is within the set range for the grid operation. Set the price range from 24,606 to 28,606, with 10 grid quantities and arithmetic profit. At this time, the system calculates the average ROI for each of the 10 grids to be 1.36% to 1.59%.
Maximum ROI = (28,606 - 24,606) / (10 * 24,606) - 0.02% * 2 = 0.0158, approximately 1.59%
Minimum ROI = (28,606 - 24,606) / (10 * 28,606) - 0.02% * 2 = 0.0135, approximately 1.36%
For JOJO's maker/taker fee, please visit: JOJO Fees
At this moment, based on your set price range of 24,606 to 28,606, 10 grid quantities, default 20X leverage, and the investment of 87 USDC, the system plans a price spacing of 400 for the 10 arithmetic grids. Each grid will invest 0.006454 BTC for arbitrage.
When you think the market is about to rise and oscillate: The latest price is above the set range for grid operation. Set the price range from 27,606 to 29,606, with 10 grid quantities and arithmetic profit. At this time, the system calculates the average ROI for each of the 10 grids to be 0.64% to 0.69%.
Maximum ROI = (29,606 - 27,606) / (10 * 27,606) - 0.02% * 2 = 0.00684, approximately 0.68%
Minimum ROI = (29,606 - 27,606) / (10 * 29,606) - 0.02% * 2 = 0.00635, approximately 0.64%
For JOJO's maker/taker fee, please visit: JOJO Fees
At this moment, based on your set price range of 27,606 to 29,606, 10 grid quantities, default 20X leverage, and the investment of 87 USDC, the system plans a price spacing of 200 for the 10 arithmetic grids. Each grid will invest 0.006066 BTC for arbitrage.
When you think the market is about to fall and then oscillate: The latest price is below the set range for grid operation. Set the price range from 22,606 to 25,606, with 10 grid quantities and arithmetic profit. At this time, the system calculates the average ROI for each of the 10 grids to be 1.14% to 1.29%.
Maximum ROI = (25,606 - 22,606) / (10 * 22,606) - 0.02% * 2 = 0.0128, approximately 1.29%
Minimum ROI = (25,606 - 22,606) / (10 * 25,606) - 0.02% * 2 = 0.0114, approximately 1.14%
For JOJO's maker/taker fee, please visit: JOJO Fees
At this moment, based on your set price range of 22,606 to 25,606, 10 grid quantities, default 20X leverage, and the investment of 87 USDC, the system plans a price spacing of 300 for the 10 arithmetic grids. Each grid will invest 0.007269 BTC for arbitrage.
About how to choose the number of grids, let's take a simple example. In the case of setting the same price range, price type, and investment amount for the ETH/USDC grid bot, changing only the number of grids, we can see that compared to setting only 5 grids with a profit per grid of 1.70% - 1.87%, setting 30 grids has a profit per grid of 0.25% - 0.28%. Combined with the grid profit formulas:
Maximum ROI for arithmetic grids = (Upper Bound - Lower Bound) / (Grid Quantity * Lower Bound) - User's maker fee * 2
ROI for geometric grids = [ (Upper Bound / Lower Bound)^(1/Grid Quantity) - 1 ] / (Initial Margin Ratio * Grid Quantity) - User's maker fee * 2
It can be seen that the key to increasing profits lies in how to increase the number of trades and the profit per grid. In a situation where the total amount of funds is fixed, having too many grids will lower the price difference per grid and the buy quantity per grid, reducing the profit per trade. Therefore, adjusting the number of grids is crucial for increasing profits.
After the contract grid bot has successfully placed an order, you can check the status of the running bot in the bottom left corner of the trading page under [Bots].
How to choose the number of grids in a manual strategy?
JOJO allows you to set the number of grids between 1 and 200.
In grid trading, increasing the number of grids makes them more dense, allowing for trading within smaller price fluctuations. This means that while the profit per grid may be smaller, more frequent trades are triggered due to frequent price fluctuations. On the other hand, reducing the number of grids increases the interval between them, requiring larger price fluctuations to trigger trades. As a result, the profit per grid is relatively higher, but the trigger frequency of trades is reduced.
Traders can choose the appropriate number of grids based on their preferences and market conditions to balance profit and trigger frequency. The selection of grid quantity depends on the trader's risk tolerance and expected returns.
Please note that the above is only a preliminary viewpoint, and the actual trading strategy and market conditions need to be further analyzed and adjusted.
Is there a fee for the grid bot?
JOJO's grid bot only charges trading fees, and if there are funding fees generated by the position, they will also be charged. There are no other additional fees.
How do I receive the profits generated by my grid bots?
During the operation of the grid bot, the grid profits will be automatically deposited into your account funds.
How do I choose the entry and exit timing?
Enter during oscillating market conditions and exit during significant price increases or decreases.
What is the difference in investing in different trading pairs?
If you are new to trading, it is recommended to choose mainstream trading pairs with good liquidity and relatively low volatility, such as BTC/USDT, ETH/USDT. If you have a deep understanding of grid trading, you can try other high-volatility trading pairs to earn higher profits. However, please remember that returns and risks go hand in hand.
Is it possible for transaction fees to exceed grid profits?
No, it is not possible. The system will automatically indicate the net profit for each grid when opening a position. If the user's potential income is lower than the transaction fees due to the parameters manually entered by the user, the system will provide an automatic prompt.
How should I control the risk of the grid bot?
If you want to control the risk of the contract grid bot, it is recommended to use a sub-account instead of your main account for grid trading. This is because although grid trading can be done with any account and trading pair, only one grid bot can be activated per account per trading pair. Since JOJO operates in cross-margin mode, the risks between JOJO's sub-accounts, and between sub-accounts and the main account, are calculated separately.
Will the grid bot trading be interrupted? What happens after it is interrupted?
Grid trading can be passively interrupted in several situations:
Scenario 1: The system triggers the stop loss price.
Scenario 2: Manually clicking to terminate.
Scenario 3: User manually/system intervention in bot orders. This includes the user actively canceling grid orders and closing positions, the user actively modifying leverage, the user being liquidated, or the contract delisting the trading pair (please note that if JOJO wants to delist a trading pair, the platform will provide a delisting system announcement 48 hours in advance).
Scenario 4: Order placement failure. Any order placement failure due to various reasons, such as insufficient available margin, liquidation, insufficient available closing amount, reaching the limit price, etc.
Scenario 5: Transaction failure. For example, on-chain failure and other situations.
When the grid bot is terminated:
After termination, the bot will no longer automatically create new orders, and all orders created by the grid bot will be automatically canceled and fully closed. (Please note that there is a very small possibility of a failed liquidation when the position is being updated, and all risk compensation in this case is borne by the JOJO platform.)
Where can I find my funds when creating a grid bot?
When creating a grid bot at JOJO, your funds can be found in the grid bot account, which is separate from your main account. Once you've created a grid bot, the investment in your main account will be transferred to the grid bot account. You can check the grid bot account balance and position margin on the 【Grid Bot】 page.
