Binance Spot Grid Trading Explained – Enable Automatic Crypto profits!

If you are familiar with trading then You know that a lot of Traders will tell You that this is a horrible time to Trade when we have a bounded range like This without a clear Direction in Trend However today I'm going to show you a Specific trading strategy which binance Offers called spot grid trading which is Precisely designed to help you take Advantage of this type of price action So in today's video we're going to first Of all cover when to use it because There's no point in learning about what It is if you don't know when to first of All use it then we're going to cover What it actually is and how it works Then I'll let you know how you can Create one yourself and finally I'll Give you a few Pro tips to really help You crystallize your strategy so stick Around until the end of the video for Those Foreign [Music] Welcome to the channel my name is Frank And this is altcoin Buzz as a friendly Reminder please be informed that this is A volatile space and there is a Corresponding risk in cryptocurrency This video is informative in nature so Please do not take it to be official Financial or investment advice also be Sure to check out the link in the Description below to see more

Information about our 600 exclusive Altcoin Buzz offer here if you sign up With Finance today you get a whole bunch Of unlockables as well as a 20 lifetime Trading fee discount and to top it off We have an extra trading competition on Binance so stick around until the end of The video to find out more information About that trading competition Okay so the first question is when to Use a spot grid well very simply put you Want to use it when you start seeing That there is a lack of Direction in the Trend so for example here on bitcoin at The end of August 2022 you saw we had a Very clear move down and then we had a Low here we had a high here at about 20 500 and then what happened we came down Precisely back to that previous low so Already here you can see that we have a Lower bound over here at around the 19600 level and an upper bound which Actually touched again around the 20 500 Level so here already You can predict That it's likely that we are going to Have a bounded range in other words we Do not have a clear Direction in Trend And this is where you would be Interested in creating a spot grid Trading strategy for yourself to take Advantage of the volatility within this Range so the best time to use a spot Grid trading Style strategy is when you Have volatile markets within a bounded

Range so for example here you can see we Move down up down up we kept on going up And down this is ideal for spot grid Trading because in spot career trading You really don't want to see a very Clear Trend you want to see the price Sort of be confused and then reach the Bottom of the bounded range and then Bounce and then reach the top again and Keep on bouncing in between the middle And this is where you make the most Profit with a spot grid trading strategy Okay so next what is a spot grid trading Well imagine that the price action is Like this where the price is going down You have a buy order then the price goes Up and you sell just above if the price Keeps on going up then it's actually a Bot and it will sell for you again and Then when the price goes down it will Buy again so essentially you're Profiting from all of these small price Movements within the range and you don't Have to worry about the bot it's more or Less hands off once you create it it can Last for us pre-specified number of days If you like but it can also continue Running open-ended So speaking of which How do we create a spot grid well first Of all if you're on binance head over to Trade and then go to strategy trading And then when you're here Go to create a strategy And then create a spot grid over here

And this will take you to the spot grid So first of all you have the automatic Version of this which I recommend using If you're just starting out what I think Is best is to start out with a seven day Period so it doesn't last forever but at The same time you start seeing some Results and here they have specified Price ranges which are based on a couple Of indicators so again if you're Starting out I suggest you just start Out with what is prescribed however you Will note that it does require a fairly Substantial investment for example these Parameters requires at least 790 usdt so If you want you can copy these Parameters to the manual settings and Then it will cooperate the same price Range that you had before that's the Lower price and the Upper price of the Grid of course and then the grids is the Number of buy and sell orders basically How tightly packed they are if you have For example a 150 grid actually that's Even too large to you have if you have a Hundred grid you can see that the Profits between the buy and sell orders Or between the cell and buy orders is Very very small here and what you will Often find is that you will pay more in Trade fees than you will in the profit That you actually derive therefore I Think a smart profit to make per grid is Usually something between 0.3 and 0.6 so

Let's put in for example here 50 and Here you have between 0.3 and 46 and Here you can see it's already a smaller Investment the less grids you have the Smaller the investment will be so if I Put just 10 grids then my investment is Just 136 dollars but then of course You'll have much less buy and sell Orders being activated so it's a Trade-off that you have to figure out For yourself now if you are creating the Manual trade you have the option to Choose between arithmetic and geometric So as they say on the official binance Website in arithmetic mode each grid has An equal price difference all right Between the buy and sell orders whereas In geometric mode each grid has an equal Price difference ratio so that means That the actual price difference will Not be equal it will change based on the Ratio which and now I'm going to show You a spot grid which I actually created Yesterday this is a Bitcoin usdt spot Grid and once you've created it you will Have it show up here and it will be Running and on the very right here on Action if you click view details you Will be taken to this screen where you Will see all the details about your Trades so for example you can see that It's been running for 14 hours the lower Bound is 19400 the upper bound is 20 850 and the total initial investment was

225 dollars and here you can see the Orders being placed you have these buy Orders over here in your sell orders and You can see how close you are to buy and Sell orders and you can also see the Completed orders and here you will see The profit that you have acquired per Order which has been completed now the Total Prof profit is actually equal to Grid profit plus floats profit and to Clarify what those means grid profit is Simply when you have a buy and a sell Order which complement each other and as You can see here that is simply the Accumulation of these individual profits From each buy and sell order which match Each other now the float profit is equal To the current balance including Reserved fees minus the initial Investment the current balance Can be seen if you click on the working Tab here that's the sixty one dollars Plus 0.00728 Bitcoin the reserved fees are Six dollars and 0.0006 Bitcoin and then the initial Investment as I mentioned is up here on The right So that will give you a float profit and As you can see I have a positive grid Profit but a negative float profit and That's why my total profit is currently Negative okay so I've shown you an Example of a spot grid so now what are

The pro tips so the first pro tip is to Actually check out the strategy trading Pools because here as I mentioned when You click trade and strategy trading you Have the option to create your own Strategy but you can also head over to The strategy pool and here you will find That other people have already created Successful spot grids and then you can Simply click use parameter and use their Own parameters for your own spot grid so That could be a good and quick easy way Of getting set up the second Pro tip is To start off by using the auto Parameters because they have specific Indicators which have decided that this Is a pretty standard deviation within a Seven day time period so just try with The auto at first this is not a high Risk higher reward type of strategy it's Really a relatively low risk low reward Type of strategy and don't forget that We have an exclusive offer with binance Up to six hundred dollars to be one and We also have a trading competition a new Trading competition which makes this Deal even sweeter we have up to one Thousand dollars which can be earned on That trading competition and it's valid For all people who trade between the 14th and 18th of September all of you Will be eligible for winning some of This one thousand dollars so feel free To check out our link down in the

Description below for more information About that and if you enjoyed this video Feel free to subscribe to our Channel or Check out other videos on our channel From Matt and Natalie we post about Crypto news Technical analysis on chain analysis and More so feel free to check out those Videos and with that being said I'll see you in the next one [Music]