Gate's Grid Bots include Spot Grid, Futures Grid, Infinite Grid, and Margin Grid, which can be used in different markets. Many users asked questions about Gate's Grid Profit withdrawal and data, which are important indicators that users are concerned about. The platform provides the following explanations in this article to address users' doubts and alleviate their concerns.
1.Why are my Profits Reduced when Token Price Grows?
Grid profits are generated through the process of buying low and selling high. However, during the actual execution of grid trading, orders do not match one-to-one with the arbitrage price difference set by the grid; they are randomly executed instead. As a result, there may be instances where the selling price of the tokens is lower than the buying price. Consequently, grid profits may decrease although the market goes up. However, the tokens bought at a lower price and not yet sold will bring unrealized gains. So the temporary falling Grid profits will not affect the Total Grid Return.
Eg: Suppose user A created a Spot Grid for BTC at a filled price of 65,000 USDT. The price range was 59,000 to 80,000 USDT and the number of grids was 60/Arithmetic Sequence. If the BTC price drops from 65,000 USDT to 62,000 USDT and then rises back to 68,000 USDT, the grid should be profitable overall. However, orders are executed randomly during the grid operation, so there can be instances where tokens are sold at a lower price than bought. For example, BTC bought at 64,694 USDT might be sold at 63,983 USDT, resulting in a temporary negative grid profit. This would cause the total displayed grid profits to be negative at that moment. Nevertheless, the not-yet-sold BTC bought at lower prices will bring unrealized gains, which means that the overall grid profits will not decrease. Therefore, these temporary fluctuations in grid profits do not affect the Total Grid Return.
2.Why Can't I Withdraw the Full Amount of My Grid Profit? Why are the Displayed Grid Profits Different from the Results I Calculated?
Let's evaluate the two situations one by one.
Situation 1: I Can't Withdraw the Full Amount of My Grid Profit. In the execution of grid trading, there is slippage between the actual filled price and the theoretical price set in the grid. As a result, the actual return per grid may be lower than the theoretical return per grid. Meanwhile, the grid will keep a certain amount of funds to maintain successful future grid running, so users cannot withdraw all the displayed grid profits.
Eg:
User B created a CRU Spot Grid with a price range of 0.2 to 2.5 USDT, the number of grids was 200/Arithmetic Sequence and buying 6.05 CRU per grid. According to the grid parameters, the price difference per grid should be 0.01155779 USDT, and the return per grid should be 0.06992463 USDT. However, in actual trading, there are slippage and trading fees. The price difference per grid can be smaller than the theoretical value. As a result, the grid profits may be lower than the theoretical value.
On Gate Bots, most markets currently require a minimum order of 1 USDT. This USDT will be retained to place orders and purchase the base token as a fee deduction. As a result, User A cannot withdraw the grid profit amount displayed on the grid interface.
Situation 2: During the actual execution of grid trading, orders do not match one-to-one with the arbitrage price difference set by the grid; they are randomly executed instead. As a result, there may be instances where the selling price of the tokens is lower than the buying price. Consequently, grid profits may get lower than the theoretical value. However, the tokens bought at a lower price and not yet sold will bring unrealized gains. So the temporary falling Grid profits will not affect the Total Grid Return. As the overview page of Gate Spot Grids displays the theoretical Grid profits, it may be different from actual Grid profits. During this period, users cannot withdraw the displayed Grid profits.
Eg: Assuming user C created a Spot Grid for BTC at the price of 65,000 USDT, with a price range of 60,000 to 70,000 USDT, number of grids of 10/Arithmetic Sequence, buying 0.1 BTC per grid, and initially bought 0.5 BTC as the base for trading. Subsequently, the BTC price dropped to 63,000 USDT and rose to 66,000 USDT. Let's check the theoretical Grid profits and actual Grid profits separately. Displayed Grid Profits on Gate Bots (theoretical value): 333.33 USDT
As orders are executed randomly during the grid execution, the following situations are possible:
Under this situation, the user notices that the grid interface displays a grid profit of 333.33 USDT. Still, they cannot withdraw the corresponding amount of grid profit because the actual grid profit is 55.55 USDT.
It is crucial for users to understand how Gate calculates profits in grid trading. Fluctuations in total returns and restrictions on grid profit withdrawals are due to the order-matching mechanism and market volatility. Although short-term losses may be observed, grid trading strategies are expected to provide stable returns for users in the long run. If you have further questions or need assistance, please contact Gate's dedicated TG customer service for Bots: @Gate_CopyTrading. We are committed to serving you. Thank you for your trust and support.
About Bots
Bots is a quantitative strategy trading tool where users can freely create or copy automatic trading strategies. Strategy Bot offers many excellent strategies with long-term stable profits, helping users achieve profits during market downturns.
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Gate June 26, 2024
