# Grid Strategy Instructions
**I. Futures Grid Strategy**
**1. What is a Futures Grid Strategy?**
A futures grid strategy is an automated trading strategy that buys low and sells high (or sells high and buys low) within a specific price range to trade futures contracts. Users only need to set the upper price limit, lower price limit, and the number of grids. The system will automatically place orders and continuously trade based on market fluctuations to capture arbitrage profits.
Currently, the futures grid supports USDT-margined contracts for all coins. Coin-margined contracts will be supported in the future.
**2. Suitable Scenarios for Futures Grid**
The core of the futures grid is "range-bound arbitrage," making it suitable for prolonged sideways or consolidating markets.
Additionally, the futures grid can be configured with a directional bias:
* **Long Grid:** Only opens and closes long positions – suitable for range-bound uptrends.
* **Short Grid:** Only opens and closes short positions – suitable for range-bound downtrends.
* **Neutral Grid:** Places sell/close-short orders above the market price and buy/close-long orders below the market price – suitable for sideways markets.
**3. Futures Grid Creation Steps and Related Parameters**
**3.1 Creation Steps:**
Go to the Bitfrog App, select "Strategy" at the top of the "Trade" page, then choose **Futures Grid**.
Enter the parameters, confirm the investment amount, and create the grid (the invested funds will be isolated from your trading account and used independently).
Once created, you can view and manage your grid on the "Strategy" page.
**3.2 Related Terms and Parameters of Grid Strategy:**
**Manual Creation:** Set parameters based on the user's own range assessment.
**Grid Order Parameters:**
* **Lower Price Limit:** When the market price falls below this level, the strategy stops placing orders.
* **Upper Price Limit:** When the market price rises above this level, the strategy stops placing orders.
* **Number of Grids:** The number of sub-intervals for placing orders. For example, if the range is 100–400 with 3 grids, the intervals would be 100–200, 200–300, and 300–400.
* **Leverage:** The leverage multiplier used for strategy trading, up to a maximum of 50x.
* **Investment Margin:** The amount of funds invested in the grid strategy. The maximum available equals the transferable amount of that coin in your trading account.
* **Arithmetic Grid:** The price difference between adjacent orders is equal.
* **Geometric Grid:** The price ratio between adjacent orders is equal.
* **Take Profit / Stop Loss Price:** When the price reaches this level, the strategy will automatically stop and close positions at market price.
* **Position Base Selection:** Choose whether to open a base position when starting the strategy. Example: When starting a long grid with a base position, a long position will be opened above the current price. If the price rises, the position can be closed for a profit. The same applies to short grids.
* **Total Amount:** The total capital scale after applying leverage. Total Amount = Investment Margin × Leverage.
* **Actual Leverage:** Measures the leverage risk of the position, calculated as Position Value / Strategy Account Equity.
**4. Notes**
When the price moves beyond the upper or lower limit of the range, the strategy will stop operating. If the price moves unidirectionally without returning to the range, it may result in floating losses or even liquidation risk. It is recommended to set reasonable stop-loss levels.
Once a grid is created, funds are isolated from the trading account. Please monitor position risk.
If the coin encounters abnormal conditions such as trading suspension or delisting while the grid is running, the grid strategy will automatically stop.
***
**II. Spot Grid Strategy**
**1. What is a Spot Grid Strategy?**
A spot grid strategy is an automated strategy that buys low and sells high within a specific price range. Users only need to set the upper and lower price limits and the number of grids. The strategy will automatically calculate the buy and sell prices for each grid and place orders. As the market fluctuates, it buys low and sells high to capture volatility profits.
**2. Suitable Scenarios for Spot Grid**
The core of the spot grid is "selling high and buying low for range-bound arbitrage," making it very suitable for sideways or range-bound uptrend markets. If the market declines, there may be a risk of loss.
**3. Spot Grid Creation Steps and Related Parameters**
**3.1 Creation Steps:**
Go to the Bitfrog App, select "Strategy" at the top of the "Trade" page, then choose **Spot Grid**.
Enter the parameters and confirm the investment amount to create the grid (once created, the invested funds will be isolated from your trading account and used independently).
Once created, you can view and manage the grid strategy on the "Strategy" page.
While the strategy is running, you can withdraw arbitrage profits or stop the grid at any time.
**3.2 Related Terms and Parameters of Grid Strategy:**
**Manual Creation:** Set parameters based on your own assessment of the range-bound market.
**Specific Grid Parameters:**
* **Lower Price Limit:** When the market price falls below this level, the strategy will no longer place orders.
* **Upper Price Limit:** When the market price rises above this level, the strategy will no longer place orders.
* **Number of Grids:** The number of sub-intervals for placing orders within the range (e.g., if the range is 100–400 with 3 grids, the intervals would be 100–200, 200–300, and 300–400).
* **Investment Currency:** You can choose to invest in the trading currency, the quote currency, or both.
* **Investment Amount:** The amount to invest in each currency. The maximum available equals the transferable amount of that currency in your trading account.
* **Arithmetic Grid:** The price difference between adjacent orders is equal.
* **Geometric Grid:** The price ratio between adjacent orders is equal.
* **Take Profit Price:** When the price rises to this level, the strategy will automatically stop and sell the spot.
* **Stop Loss Price:** When the price falls to this level, the strategy will automatically stop and sell the spot.
**4. Notes**
If the market price falls below the lower limit of the grid range, the strategy will no longer execute operations. It is recommended to set a stop loss at a reasonable level below the grid's lower limit.
Once a grid is created, funds will be isolated from the trading account. Please monitor overall position risk.
After a take profit or stop loss is triggered, the sale of the coin may fail. Users need to determine whether to manually sell the coin.
If the coin is suspended, delisted, or experiences other abnormal conditions, the grid strategy will automatically stop.
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