This document explains exactly how the Grid Trading Bot works, from creation to trading, risk management, and stopping.
1 What Is a Grid Trading Bot?
A Grid Trading Bot is an automated trading strategy that:
Buys an asset at lower prices
Sells it at higher prices
Repeats this process continuously within a defined price range
It does not predict the market direction.
Instead, it profits from price movement (volatility).
2 Bot Creation (Initial Setup)
When you create a bot, you define:
Where trades will happen (e.g. Bybit)
Trading pair (e.g. XRP/USDT)
At this stage:
3 Starting the Bot (Indicator Gate)
When you press Start Bot, the system behaves differently depending on indicator settings.
If Indicators Are Disabled
If Indicators Are Enabled
Before trading begins, the bot checks market conditions once:
Indicators checked:
These indicators are used only to decide WHEN to start, not for ongoing trading.
If Indicators Are NOT Met
Bot status becomes WAITING
Bot automatically rechecks indicators every 5 minutes
This continues until conditions become favorable.
WAITING means the bot is protecting your capital.
If Indicators Are Met
Indicator check is marked as passed
Indicators are never checked again
Bot automatically starts trading
You do not need to press Start again.
4 Grid Creation (Price Levels)
Once the bot starts:
Your selected price range is divided into equal grid levels
Each grid represents a buy/sell opportunity
Example:
Grid prices might look like:
5 Initial Buy Orders
The bot checks the current market price.
Example:
✅ Buy orders are placed below current price
❌ No buy orders above market price
So the bot places BUY orders at:
6 Sell Orders & Profit Generation
When a BUY order fills:
The bot automatically places a SELL order at the next higher grid
Example:
Each completed Buy → Sell cycle generates profit.
This process repeats continuously as long as price moves within the grid range.
7 Continuous Trading Cycle
Syncs order status with the exchange
Places SELL orders for filled buys
Places new BUY orders when price drops
This is fully automated and runs 24/7.
8 Stop Loss Protection (Risk Control)
If you set a Stop Loss price:
When price reaches or drops below this level:
All open orders are canceled
All remaining assets are sold at market price
This is an emergency safety mechanism.
9 Bot Statuses Explained
10 Stopping the Bot
Delete & Liquidate
Sells all remaining assets
Bot is permanently deleted
11 Profit & Reporting
Every completed grid trade is recorded
Realized P&L is calculated
Trade history remains available even after deletion
12 Key Things to Understand
The bot does not chase price
It profits from price movement
WAITING is intentional protection
Indicators are checked only once
The system is state-driven and safe