Trading bot FAQ

1. What is Strategy Trading?

Strategy trading replaces subjective human judgment with advanced mathematical models. Based on computer and network technology, it selects multiple "high probability" events from vast historical data to formulate strategies that can bring excess returns. This greatly reduces the impact of investor emotional fluctuations and avoids irrational investment decisions during periods of extreme market enthusiasm or pessimism.

Strategy trading helps you utilize programmatic trading to intelligently place orders, saving you time monitoring the market and allowing you to seize opportunities in real time. You won't miss entry points, price movements, or buy/sell opportunities. It is suitable for most investors seeking stable returns.

2. Advantages of Strategy Trading

1. Offers a variety of strategy types, currently including: Grid Strategy, Spot Martingale Strategy. More new strategies will be launched continuously, providing users with more diversified choices.

2. Easy to operate. The platform provides intelligent parameters to help you set trading parameters more scientifically, as well as tutorials in text, image, and video formats to help you quickly get started and master the strategies.

3. Low fees: The platform has comprehensively upgraded its fee rate system, significantly reducing user trading fees.

4. Security guarantee: The platform has a security team composed of top global experts, providing you with bank-level security protection.

3. Spot Grid

1. What is the Spot Grid Strategy?

The spot grid strategy is an automated strategy that executes buy low and sell high within a specified price range. Users only need to set the highest and lowest prices of the range and determine the number of grids to subdivide. The strategy will calculate the buy low and sell high prices for each small grid, automatically place orders, and continuously earn profits from market fluctuations as the market moves.

2. Scenarios Suitable for Spot Grid

The core of the spot grid is "sell high, buy low, arbitrage in volatility," so this strategy is very suitable for volatile markets and volatile upward markets. If the market experiences a downward trend, it may bring corresponding loss risks.

3. Steps to Create Spot Grid, Related Parameters, and Example Tutorial

3.1 Creation Steps:

(1) After entering OKX on PC or APP, select "Strategy Trading Mode" on the "Trading" page (top left on PC, top right on APP), then select Spot Grid.

(2) Enter parameters or use intelligent parameters on the trading page, then confirm the investment amount to create the grid. (After the grid is created, the invested funds will be isolated from the trading account and used independently in the grid strategy.)

(3) After creation, you can view and manage the grid strategy in the "Strategy" section at the bottom of the trading page.

(4) During the strategy operation, you can withdraw profits generated by grid arbitrage at any time or stop the grid.

3.2 Grid Strategy Related Terms and Parameters:

Two creation modes:

Manual Creation: Set parameters based on your own judgment of the volatility range.

Intelligent Creation: Directly use system-recommended grid strategy parameters. (The logic for recommended parameters is: after backtesting 7 days of market data, the intelligent algorithm recommends parameters suitable for recent market conditions.)

Specific Grid Parameters:

Lowest price of the range: When the market price falls below the lowest price of the range, the strategy will no longer place orders.

Highest price of the range: When the market price rises above the highest price of the range, the strategy will no longer place orders.

Number of grids: The number of grids represents the number of small intervals for placing orders within the volatility range. For example, if the range is 100-400, arithmetic, and the number of grids is 3, it is divided into 100-200, 200-300, 300-400, these 3 grids.

Invested currency: Users can choose to invest in the trading currency, the quoted currency, or both.

Investment amount: The quantity of each currency invested in the grid strategy. The maximum available for each currency equals the maximum transferable amount currently in the trading account.

Arithmetic grid: The price difference between each adjacent order is equal (e.g., 1, 2, 3, 4).

Geometric grid: The price ratio between each adjacent order is equal (e.g., 1, 2, 4, 8).

Take profit price: When the coin price rises to this level, the strategy automatically stops and sells the occupied spot.

Stop loss price: When the coin price falls to this level, the strategy automatically stops and sells the occupied spot.

3.3 Example Tutorial (Using BTC/USDT Trading Pair as Example)

Set Parameters

Lowest price of the range: 50,000 USDT

Highest price of the range: 100,000 USDT

Number of grids: 50

Grid mode: Arithmetic

Investment amount: 5,000 USDT

BTC/USDT price at strategy creation: 60,100 USDT

Strategy Operation

Stage 1 - Initial Order Placement: The system calculates the price for each grid as 50,000, 51,000, 52,000...98,000, 99,000, 100,000, and places buy orders at these prices. If market depth is good, after the strategy starts, buy orders are placed at every price from 50,000 to 60,000, and sell orders at every price from 62,000 to 100,000.

Stage 2 - Strategy Operation: If the market price falls below 60,000, the buy order at that position is filled (buy low), and the program automatically places a sell order at the corresponding upper position (i.e., 61,000 price) in the 60,000-61,000 grid (sell high). If the price rises, after the sell order is filled, a buy order is placed at the corresponding lower position. This cycle of order placement and execution with market fluctuations allows continuous profit from volatility.

Stage 3 - Strategy Adjustment: When the market price falls below the lowest price of the range, 50,000, the grid automatically moves down and the range expands, placing orders at 49,000. If the market continues to fall, the grid will automatically move down repeatedly, placing orders at 48,000 or even lower, until the stop moving price is reached or the stop loss is triggered and the strategy stops.

4. Notes

4.1. After the market price falls below the lowest price of the grid range, the program will no longer operate. If the price continues to fall and does not return to the grid range, the held trading currency will bear floating losses. It is recommended to set a reasonable stop loss price below the grid's lowest price to stop losses in time.

4.2. After the grid is created, the invested funds will be isolated from the trading account and used independently in the grid strategy. Therefore, users need to pay attention to the risk brought to the overall position in the trading account after funds are transferred out.

4.3. After take profit or stop loss is triggered, or when the strategy is manually stopped, there will be a market sell of the trading currency. If the risk control system determines that this may bring risk to the market, the sale may fail. Users can decide whether to continue selling manually.

4.4. If during the grid strategy operation, the currency encounters unforeseen abnormal situations such as trading suspension or delisting, the grid strategy will automatically stop.

4. Spot Martingale

1. What is the Spot Martingale Strategy?

DCA, short for Dollar Cost Averaging, is more commonly known in China as the Martingale strategy, often used in traditional financial forex markets.

If you always worry about not buying at the bottom, or if the investment target continues to fall after buying at a low point, understanding and using the Martingale strategy will greatly help your investment in the crypto market.

The basic principle of the Martingale strategy is to bet on one side in a two-way market where you can buy long or short. If you make the wrong bet, you keep increasing your position in the opposite direction. When the market rebounds, you can profit from buying low and selling high. Currently, the Martingale strategy, with its series of advantages, has been widely used by various investors. However, due to market risks, this strategy cannot guarantee principal protection, and investors need to control risks.

Additionally, as user needs diversify, the platform has officially launched the spot trading version of the Martingale strategy. The platform's spot Martingale strategy follows the basic logic of the traditional version and combines the characteristics of the crypto market with a series of operational optimizations. It is an automated, batch, low-point bottom-fishing strategy.

2. Creation Modes

The Martingale strategy offers two different creation modes for users with different experience levels: manual creation and intelligent creation.

Manual creation allows traders to set parameters based on their own market judgment. This is mainly suitable for experienced traders with strong capital, while ordinary users are advised to use the intelligent creation mode.

Intelligent creation allows users to select system-recommended parameters based on their risk preference to set investment amount and buying rhythm. The recommended parameters are calculated using historical market data and asset volatility, aided by backend algorithms, and are authoritative, providing reliable investment reference. Additionally, drawing on the practice of stratifying traders in traditional securities investment, the intelligent creation mode recommends parameters of different risk levels—conservative, balanced, and aggressive—based on the user's asset status and risk tolerance to control risk as much as possible.

3. Case Analysis:

Below is a practical example of the Martingale strategy using the BTC/USDT trading pair, divided into several steps:

3.1 Trigger Conditions:

Trigger type: Immediate trigger

Rebuy after drop: 5.00%

Single take profit target: 10.00%

3.1 Investment Amount:

Initial order amount: 100 USDT

Rebuy order amount: 200 USDT

Maximum number of rebuy orders: 4 times

3.3 Rebuy Details (Advanced Parameters):

Rebuy price difference multiplier: 1.5x

Rebuy amount multiplier: 2.0x

User funds: 3,100 USDT

3.4 Strategy Operation

T0 - Initial Order Placement: When the strategy is created, BTC/USDT price is 20,000 USDT. The user selects the strategy start condition as immediate trigger, so the system places a market order for the initial order amount, buying 100 USDT worth. At the same time, limit orders are placed below:

Amount of trading currency held: 100 / 20,000 = 0.005 BTC

Amount of quoted currency held: 3,100 - 100 = 3,000 USDT

Average position cost = 20,000 USDT

Take profit price for this trading cycle = 20,000 * (1 + 10.00%) = 22,000 USDT

Rebuy order #1: Trigger price is 20,000 * (1 - 5%) = 19,000 USDT, order amount is 200 USDT

Rebuy order #2: Trigger price is 20,000 * (1 - 5% - 5% * 1.5) = 17,500 USDT, order amount is 200 * 2.0 = 400 USDT

Rebuy order #3: Trigger price is 20,000 * (1 - 5% - 5% * 1.5 - 5% * 1.5^2) = 15,250 USDT, order amount is 200 * 2.0^2 = 800 USDT

Rebuy order #4: Trigger price is 20,000 * (1 - 5% - 5% * 1.5 - 5% * 1.5^2 - 5% * 1.5^3) = 11,875 USDT, order amount is 200 * 2.0^3 = 1,600 USDT

T1 - Short-term Price Drop: BTC/USDT price drops to 15,000 USDT. At this point, rebuy orders #1, #2, and #3 are fully filled, while rebuy order #4 is not filled.

Amount of trading currency held: 100 / 20,000 + 200 / 19,000 + 400 / 17,500 + 800 / 15,250 = 0.0908 BTC

Amount of quoted currency held: 3,000 - 1,400 = 1,600 USDT

Average position cost = (100 + 200 + 400 + 800) / 0.0908 = 16,512.10 USDT

Take profit price for this trading cycle = 16,512.10 * (1 + 10.00%) = 18,163.31 USDT

T2 - Price Rebound: BTC/USDT price reaches the take profit price of 18,163.31 USDT. At this point, the take profit price for this trading cycle is reached, all positions will be sold, and the current trading cycle ends.

Amount of trading currency held: 0 BTC

Amount of quoted currency held: 1,600 + 18,163.31 * 0.0908 = 3,249.23 USDT

4. Notes:

(1) Non-principal protection notice: The Martingale strategy itself is not a principal-protected strategy. In extreme one-way downward markets, there is still a certain risk of loss. Investors should be aware.

(2) Trading account risk notice: After the strategy is created, the invested funds will be isolated from the trading account. Please pay attention to the risk of forced liquidation caused by changes in assets in the trading account.

(3) Abnormal situation notice: If during the strategy operation, the asset encounters unforeseen abnormal situations such as trading suspension or delisting, the strategy will automatically stop.

(4) Self-risk notice: It is recommended that you read the OKX Martingale trading product description in full, reasonably assess your own risk tolerance, and make rational decisions.