A prominent asset and cryptocurrency trading platform, MEXC Global, released a statement and announced the Spot Grid Trading feature. It was formally launched on MEXC Quantitative at 18:00 on July 7th.
MEXC Quantitative Trading is a free trading system that assists users in reducing time and effort and increasing profit margins. It is almost similar to your trading strategy having a 24/7 all-around robot butler.
Spot Grid Trading will be the first live feature on MEXC Quantitative, which will help users to automate the buy and sell orders and modify the initial investment amount. Also, the user can take advantage of market irregularity by automatically buying at the low and finally selling at a high within a specified given price range.
In the context of Quantitative trading, the CEO of MEXC Global, John Chen, said that now it has become a powerful tool in the cryptocurrency market, and traders primarily appreciate it. The system lays emphasis on taking the user experience to the next level and helping them to keep ahead of the other participants in the market so that they keep winning throughout the bull run.
Grid Trading a Brief Overview
Grid trading is a quantitative trading method that carries out the principle of “sell high and buy low” automatically. At the moment, MEXC offers grid trading for cryptocurrency spots.
With the help of grid trading, Arbitrageurs can automatically buy at low prices and sell at high prices to profit from market volatility and select the lowest and maximum price, grid quantity, and investment amount within a defined base price.
Benefits of grid trading
- This trading system is automatically implemented. Additionally, the user can avoid keeping track and repeated work.
- It controls human weaknesses like greed, fear, and luck and enables users to grab the finest business opportunities to gain profit margins.
- In volatile markets, it works brilliantly. The market makes more money the more turbulent it is.
Grid Trading works best for professional quantitative institutions and is an excellent tool for individual traders. As per the current bear market, it is a preferred trading strategy.
A Look into the Operation of grid
Principles to Select the Benchmarked Asset for Grid Trading
- We can only choose the supported cryptocurrencies by the exchange. MEXC supports grid trading for 60 cryptocurrencies, including BTC, ETH, XRP, DOT, and many more.
- Always prefer a volatile, rising market. Any long-only strategy cannot be rewarding in a unilateral downtrend, and it is simple to go short and underperform the overall market trend in a unilateral rise with small fluctuations.
- Remember to choose a currency with high fluctuations. The higher and stronger the fluctuations, the more the chances of executing the buy and sell orders. Currently, MEXC supports 2400+ cryptocurrencies, and soon more will be added.
Design your core holdings
Users need to create the core holdings for the grid trading, and the size is determined by the valuation of the project. Let’s suppose the current value of the asset is low; in this case, the holdings can be increased. On the other hand, if the value is low, one can dissolve some of the core holdings.
Create the grid size
Let’s take BTC as an example. Assume that BTC is currently trading at 40000 USDT, now set the lowest price at 30000 USDT and highest at 50000 USDT, with the number of grids being 5.
The price interval will be (50,000-30,000)/5 = 4000. Now all the orders will be placed at 5,000, 4600, 4200, 3800, 3400, and 3000.
Grid Trading – Conclusion
To conclude, the traders can make the most of it to maximize the gains in the bear market, especially since the chances are more in the volatile bear market. The cost is still minimal even if the price direction is wrongly predicted. On the other hand, the “mountain peak” of the candlestick chart is more likely to be achieved in a bull market.
About MEXC Global
MEXC Global, a digital asset trading platform with over 7 million users, was established in April 2018 and provided consumers with a one-stop destination for services like spot, margin, leveraged ETFs, derivatives trading, and staking.
The team’s core members have experience in the blockchain and financial industries and come from multinational corporations and financial institutions.