The GRID strategy is a trading approach that divides a chosen price range into levels and places buy and sell orders at each step. In simpler terms, it means setting up a grid of automated trades that can capture profit from price swings within that range.

General principle of the GRID strategy

While the DCA strategy focuses on averaging a position when the price moves against it, GRID trades more actively as the market moves within the range — buying low, selling high, or doing both in reversal mode.

Each time an order is executed, a new one is automatically placed, so the strategy keeps running without interruption. It’s a practical approach for traders who want to benefit from volatility without constant manual control.

How to use the GRID strategy

The GRID strategy is most effective when the market moves within a range or trends with pullbacks, creating frequent ups and downs without sharp one-way swings. With a Trailing grid, the setup can also shift as the price changes, helping the bot adapt to market movement.

You can choose from three GRID strategy modes:

• Long: Opens only buy orders — best when a price increase is expected.
• Short: Opens only sell orders — used when a price decrease is expected.
• Reversal: Opens both buy and sell orders — ideal for sideways markets, though it requires careful capital management.

On top of that, you can use an AI Preset to instantly build a GRID strategy with optimal settings — all you need to do is choose the asset and direction. The system then automatically determines how much capital to allocate, how many grid levels to set, the distance between them, and the trade size at each step. There are three styles:

• Conservative — Fewer trades with wider spacing between orders, offering lower risk.
• Optimal — A balanced setup with moderate spacing and trade frequency.
• Aggressive — More frequent trades with tighter spacing, carrying higher risk but also greater potential returns.

If you prefer more control, you can fully customize your trading strategy using built-in risk management tools like trading filters to help you adapt to changing market environments. Explore the custom settings options here: Customize GRID bot parameters.

Set up your GRID strategy with Elirox today and start trading smarter!