2. Trading Strategies - Core F...
Grid Settings and Configuration Guide
30 min
grid settings & configuration guide properly configuring your grid trading settings is critical for successful cryptocurrency trading this comprehensive guide will help you understand and optimize each setting for your specific trading goals link https //www youtube com/watch?v=s4fismmzx a essential grid parameters price range the price range defines the upper and lower boundaries within which your grid will operate upper limit the highest price at which your grid will place orders lower limit the lowest price at which your grid will place orders best practices set reasonable ranges based on recent price history and support/resistance levels for bullish grids consider setting upper limit 10 20% above current price for bearish grids consider setting lower limit 10 20% below current price use the sgm bands indicator to identify potential range boundaries avoid extremely wide ranges as they dilute capital efficiency grid levels grid levels determine how many orders will be placed within your price range recommended range 10 50 levels for most strategies more levels create tighter spacing, more frequent trading, smaller profits per trade fewer levels create wider spacing, less frequent trading, larger profits per trade best practices balance trading frequency against transaction fees consider market volatility when setting levels for low fee exchanges, more levels may be beneficial for high fee exchanges, fewer levels often perform better use backtesting to find optimal level count for your specific pair and market conditions grid distribution mode sagemaster offers two distribution modes for placing grid orders each grid level has equal price difference (fixed dollar amounts) example $100,000, $99,000, $98,000, etc (fixed $1,000 intervals) best for stable markets, predictable trading patterns advantages easier to calculate potential profits per level disadvantages less efficient in highly volatile markets each grid level has equal percentage difference (fixed percentage steps) example $100,000, $98,900, $97,812, etc (fixed 1 1% intervals) best for volatile cryptocurrency markets advantages accounts for the tendency of crypto to move in percentage terms disadvantages slightly more complex to calculate expected profits best practices for most cryptocurrency trading use geometric mode for stable coins or range bound markets consider arithmetic mode test both modes in backtesting to determine optimal performance trading capital amount the capital you allocate to your grid strategy has a significant impact on performance best practices allocate sufficient capital to ensure order sizes exceed exchange minimums consider grid spacing when determining investment (more levels require more capital) for bearish grids split capital between base currency (e g , btc) and quote currency (e g , usdt) for bullish grids primary capital in quote currency (e g , usdt) reserve 20 30% additional capital for protection features advanced configuration options protection features link https //docs sagemaster io/grid assist/grid protections sagemaster offers powerful protection mechanisms to handle market movements outside your grid range activates when price falls below lower grid limit places additional buy orders below your grid requires reserve usdt (quote currency) settings enable/disable toggle the feature on/off dpp limit how far below the grid the protection extends activates when price rises above upper grid limit places additional sell orders above your grid requires reserve cryptocurrency (base currency) settings enable/disable toggle the feature on/off upp limit how far above the grid the protection extends best practices almost always enable protection features set reasonable limits based on expected market volatility ensure sufficient reserve capital for protection orders monitor protection status regularly trailing mechanisms trailing features allow your grid to follow the market trend, optimizing long term performance shifts entire grid upward as market rises beyond upper limit locks in profits while maintaining grid structure settings enable/disable toggle the feature on/off activation threshold how far above upper limit before trailing activates shifts entire grid downward as market falls below lower limit maintains cryptocurrency accumulation strategy at lower prices settings enable/disable toggle the feature on/off activation threshold how far below lower limit before trailing activates best practices enable trailing for longer term grids for short term grids, consider disabling if you expect range bound conditions set reasonable activation thresholds to avoid premature grid shifts stop conditions stop conditions provide automated exit strategies for your grid automatically closes grid when price reaches specified upper threshold useful for securing profits in strong uptrends can be set to market or limit execution type automatically closes grid when price reaches specified lower threshold useful for limiting losses in persistent downtrends can be set to market or limit execution type best practices set upper stop price for bearish grids to limit potential losses in uptrends set lower stop price for bullish grids to limit potential losses in downtrends place stops at significant technical levels (support/resistance) consider using wider stops for longer term strategies start/stop trigger conditions control when your grid activates and terminates based on specific conditions instant grid starts immediately upon creation price trigger grid activates when asset reaches specific price point tradingview alert grid starts based on custom tradingview signals manual you manually stop the grid whenever you choose tradingview alert grid stops based on custom tradingview signals best practices use price triggers to automate entry at key technical levels integrate with tradingview for more complex entry/exit conditions set up alerts to notify you when grids start or stop regularly review pending grids to ensure trigger conditions remain valid using ai settings 2 0 sagemaster's ai settings 2 0 offers automated grid configuration based on advanced algorithms key features dynamic grid level adjustment automatically calculates and sets optimal grid levels utilization of timeframes operates on a 1 hour timeframe for balanced market response price protection integration seamlessly incorporates protection features trailing mechanism includes trailing features to adjust grid activation points benefits maximized investment utilization optimized grid levels based on proprietary indicators adaptive strategy implementation protection against volatility and capitalization on favorable movements reduced need for constant monitoring automated adjustments reduce manual intervention best practices use ai settings as a starting point for your grid configuration make minor adjustments based on your specific risk tolerance compare ai generated settings with your own analysis test ai settings in backtesting before live deployment more info https //docs sagemaster io/grid assist using the sgm bands indicator the sgm bands indicator provides visual guidance for grid setup and management key components central trend line shows underlying market trend without short term noise dynamic levels identifies potential market behavior zones extreme overbought/oversold areas highlights potential reversal zones best practices for grid setup using sgm bands set upper grid limit near overbought zones for bullish grids set lower grid limit near oversold zones for bearish grids use the central trend line as a reference point for neutral grids consider grid entry when price shows a rebound from extreme zones plan grid exits when price approaches opposite extreme zones more info https //docs sagemaster io/grid assist/sagemaster bands indicator how to use screener filters for grid assist sagemaster has introduced the screener filter feature to grid assist, leveraging their proprietary sgm consensus indicator to provide aggregated technical ratings across various markets the indicator categorizes assets into five values strong buy, buy, neutral, sell, and strong sell, helping traders identify potential trading pairs for grid strategies the feature allows users to filter by three timeframes (1h for short term, 4h for medium term, and 1d for long term trades) and select specific screener values for optimal results, sagemaster recommends using the sgm consensus indicator in conjunction with the sgm bands indicator , which displays current market trading channels along with overbought and oversold zones this combined approach helps traders make more informed decisions by identifying pairs with favorable ratings that aren't already in overbought or extreme overbought conditions more info https //docs sagemaster io/grid assist/how to use screener filters for grid assist grid management best practices monitoring and maintenance regularly check grid performance against expectations monitor protection feature activations stay informed about market news that could impact your grid review realized and unrealized profits periodically optimization use backtesting to compare different configurations make incremental adjustments rather than radical changes keep notes on what works well for different market conditions consider seasonal factors in cryptocurrency markets risk management never allocate all your capital to a single grid diversify across multiple pairs and strategies have clear exit plans for various market scenarios set realistic profit targets and stick to them advanced configuration scenarios high volatility markets use wider grid spacing implement stronger protection features consider geometric distribution mode set more conservative stop conditions low volatility markets use tighter grid spacing focus on higher grid level count consider arithmetic distribution mode potentially disable trailing features trending markets align grid direction with the trend enable appropriate trailing mechanisms set wider price ranges consider asymmetric grid spacing range bound markets set narrower price ranges use more grid levels consider disabling trailing features focus on arithmetic distribution conclusion grid trading configuration is both an art and a science while the technical settings are important, your understanding of market conditions and thoughtful application of these settings is equally crucial start with conservative settings, use the backtesting tools extensively, and gradually optimize your approach as you gain experience remember that no configuration is perfect for all market conditions the most successful grid traders adapt their settings as markets evolve and maintain a disciplined approach to risk management by mastering the configuration options detailed in this guide, you'll be well equipped to deploy effective grid strategies across various market conditions happy trading! 📊 the sagemaster team

