Key Terminology (Grid, DCA, Trailing)

As you explore the platform, you'll encounter a few key terms that describe the strategies our bots use. Understanding these concepts is the first step to becoming a master of automated trading.

Harvest from the market volatility

Grid Trading

Grid Trading is the core strategy for many of our bots. At its heart, it's very simple:

Grid Trading is a strategy that profits from the market's ups and downs (volatility). It works by placing a series of buy and sell orders at predefined intervals, creating a "grid" of trades.

Think of it like setting up a web of fishing nets at different depths. As the price moves up and down through your grid, the bot automatically executes "buy low" and "sell high" orders, aiming to capture small, consistent profits from the price fluctuations.

• When it excels: In sideways or choppy markets where the price bounces within a range.

• Key Parameters: Range (the upper and lower price for your grid) and Grid Step (the distance between each buy/sell order).

DCA (Dollar-Cost Averaging)

DCA is a classic investment strategy that our bots use to manage risk and enter the market intelligently.

DCA means investing a fixed amount of money at set intervals, which can lower your average purchase price over time.

Instead of trying to "time the market" and buy everything at the single "best" price (which is nearly impossible), a DCA strategy buys small amounts as the price drops. This means you buy more of the asset when it's cheaper. Our Booster Bot, for example, uses a DCA approach to "buy the dip," accumulating the asset at progressively better prices during a market pullback.

Trailing Up & Trailing Down

This is a powerful feature that gives your bots the ability to adapt to strong market trends.

• Trailing Up: Imagine your grid is set between $2,000 and $2,500. If the market price surges to $2,800, a normal grid bot would stop trading. With "Trailing Up" enabled, the bot will automatically move its entire grid range upwards to follow the price. It's like your fishing net automatically floating up to where the fish are, ensuring you continue to capture profits in a strong uptrend.

• Trailing Down: This is the same concept but for bearish (shorting) bots. If the price breaks below your grid range, "Trailing Down" allows the bot to move its grid downwards to continue profiting from the downtrend.