Grid bot
A grid bot is a bot that places a ladder of limit orders across a price range, buying on steps down and selling on steps up. It profits from swings inside a sideways market.
How it works
You set the lower and upper bounds of the range and the number of grid levels. The bot splits the range into steps, placing buys below the current price and sells above it. Each time price moves one step down and back up, the bot locks in a small profit.
Grids work well in a sideways market with frequent swings. They suffer in strong trends: if price falls below the range, you are left holding the asset that has dropped, and if price rises above it, the bot has sold everything and misses the rest of the rally.
The grid step must be well above twice the trading fee, or fees eat the profit. There are spot grids and futures grids; on futures with leverage, a move out of the range can end in liquidation.
Range BTC $60,000–$70,000, 10 grids, $1,000 per step. The bot buys at $63,000 and sells at $64,000: about 1.6% on that slice of capital, minus two fees (say 2 × 0.1% = 0.2%). If BTC drops to $55,000, the bot has bought at every level and sits on an unrealized loss until price returns.
A common mistake is running a grid on a tight range right before a big move and counting the grid profit as real profit. The grid can show +3% while the asset is down 15%. Judge the total result including the price change, size the range to real volatility, and decide in advance what you will do if price leaves the range.
Questions and answers
What is a grid bot in simple terms?
It is a bot that sets a ladder of orders, buying lower and selling higher within a range you choose. It earns while price keeps moving back and forth.
When does a grid bot lose money?
When price leaves the range downward and stays there, leaving you with an asset worth less. On a leveraged futures grid that can end in liquidation.
How many grids should I use?
More grids mean smaller steps and less profit per trade, but more trades. Each step should be several times larger than the fee per trade.
Related terms
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Updated: 2026-10-19