Pionex grid trading bot provides an AI strategy that sets parameters automatically. AI strategy will automatically generate the optimal grid bot parameters according to the strategy algorithm. The grid trading bot AI 2.0 has been upgraded, and three significant features have been comprehensively improved: more accurate backtest results, higher grid profit, and more intelligent grid range.
Pionex provides grid trading bots, a trading program that automatically buys low and sells high within a specific range.
Contents
Three Major Update
New Backtest Results: 78% more accurate
AI 2.0 is based on Pionex’s new backtesting system, PionexBT. PionexBT is a quantitative trading strategy backtesting system specially developed by Pionex for the cryptocurrency market. The professionalism of the backtesting system is at the industry-leading level, comparable to that of Goldman Sachs GS Quant.
PionexBT builds an integrated quantitative research environment based on the most advanced event-driven engine in the field of quantitative investment. During backtesting, it relies on the efficient transaction matching engine to playback the massive order flow data of the Pionex exchange. Compared with the candlesticks data backtesting commonly used in the industry, the backtesting error of the PionexBT backtesting system is reduced by 78%, which significantly improves the authenticity of the backtesting results. Every order in the backtesting system is authentic and verifiable.
New Feature: The Maximum Drawback Indicator
In the backtest results, AI 2.0 shows the maximum drawback rate in the past seven days. The maximum drawback rate is the most significant return percentage in a period. This indicator can help investors assess the risk of grid trading bots.
When investors choose a trading pair to open AI 2.0 and pay attention to the annualized profit of the grid in the past seven days, they should also pay attention to the Maximum drawback rate indicator. If the maximum drawback rate is too large, there is a higher risk of opening AI 2.0 on this trading pair, and the investor should be more careful.
For example, when an investor creates an AI 2.0 strategy, he sees the backtest data of the BTC/USDT trading pair (left image) and the backtest data of MATIC/USDT (right image):
AI 2.0 has a higher grid profit on MATIC/USDT but a more significant maximum drawdown. Following is the yield curve of AI 2.0 on these two trading pairs in the past seven days:
AI 2.0 made higher profits on the MATIC/USDT trading pair. However, the yield fell by 3.75% on February 2, while the AI 2.0 on the BTC/USDT trading pair fell by 2.55%. If the grid profits are relatively close, it is a more rational choice for investors to choose a trading pair with a lower maximum drawback rate to open AI 2.0.
Higher Grid Profit
AI 2.0 optimizes the grid parameter algorithm. For long-term optimistic value currencies, long-term operation of AI strategies can obtain higher grid profit. If investors are confident about multiple currencies simultaneously in the short term, AI 2.0 has higher universality and can automatically adjust parameters according to the price fluctuation characteristics of the coin to improve grid profit.
AI 2.0 Backtesting
To examine the performance of the upgraded AI strategy, Pionex respectively backtested AI 2.0 strategy and the original AI strategy. For the convenience of comparison, this article marks the initial AI strategy as AI 1.0. Create the AI grid bot on the 1st of each month and run until the end of the month. The principal of each backtest is 10,000 USDT, and the transaction fee rate is 0.05%.
BTC/USDT backtesting data
Grid profit refers to the arbitrage income earned by the operation of grid bot buying low and selling high. It is an important indicator to measure the performance of grid trading strategies. Compared with AI 1.0, the grid profit of AI 2.0 has increased by 17.67%, and the annualized rate of return has grown by 33.66%.
In addition to BTC, the price of ETH fluctuates more, and it is the option that users prefer to run grid trading bots. The backtest results of the ETH/USDT trading pair are as follows:
ETH/USDT backtesting data
Compared with AI 1.0, the grid profit of AI 2.0 has increased by 29.33%. The annualized yield increased by 22.55%.
Sometimes investors are optimistic about the price performance of specific coins in the future and run grid trading bots on these trading pairs. In this case, the universality of grid trading bots in different trading pairs becomes particularly important.
The AI 2.0 grid trading bot adopts a better algorithm, which improves the applicability of the grid trading bot in different trading pairs. In October 2021, most assets in the crypto market ushered in a general rise, which can better simulate the situation where investors are optimistic about multiple currencies simultaneously. Pionex backtested the trading performance of BTC/USDT, ETH/USDT, and other trading pairs in October 2021.
Compared with AI 1.0, the grid profit of AI 2.0 on all trading pairs has increased by 97.22% on average. For the vast majority of coins, the strategy’s performance has improved significantly. The result fully shows that AI 2.0 has higher applicability in different currencies.
More Accurate Grid Range
According to the price fluctuation characteristics of different coins, AI 2.0 adopts a more intelligent prediction algorithm to improve the accuracy of the grid’s upper and lower limit predictions. Thereby significantly extending the running time of the price within the grid interval, realizing the concept of passive income.
Pionex uses the grid upper and lower limit parameters of AI 1.0 and AI 2.0 to analyze the price data after the AI strategy is enabled on any day and record the number of days outside the grid interval for the first time. The meaning of this indicator is that after the user creates the grid, the average number of days after the price will first exceed the grid range.
Compared with AI 1.0, the number of days that AI 2.0 first exceeded the grid interval increased by 43.13%, which means that when the AI 2.0 grid trading bot is created, the price will exceed the grid interval after approximately 26 days. From the result, AI 2.0 can carry out automatic arbitrage by buying low and selling high for a longer time.
Pionex’s adjustment to the grid interval algorithm is not simply expanding the grid interval but making intelligent predictions based on recent price fluctuations. Compared with AI 1.0, the grid interval of AI 2.0 may be narrower or broader. (as of 2022-03-18 data)
| AI 1.0 | AI 2.0 | |
| Upper limit | 40924.3 | 45116.66 |
| Lower limit | 33492.7 | 32797.25 |
| Upper limit – Lower limit | 7431.6 | 12319.41 |
| Date the close price broke the upper limit for the first time | 2022-02-04 | not broken |
| Date the close price broke the lower limit for the first time | not broken | not broken |
| AI 1.0 | AI 2.0 | |
| Upper limit | 49841.7 | 51532.67 |
| Lower limit | 26556.5 | 31203.45 |
| Upper limit – Lower limit | 23285.2 | 20329.22 |
| Date the close price broke the upper limit for the first time | not broken | not broken |
| Date the close price broke the lower limit for the first time | not broken | not broken |
The grid interval of AI 2.0 was wider on February 1 but narrower on January 27. The number of days for AI 2.0 breaking through the range for the first time did not increase. The result shows that AI 2.0 does not simply expand the grid interval, and the grid interval algorithm is more intelligent!
Although the intelligent grid interval parameters of AI 2.0 can fit the price within the grid longer, under the extension of the bot running time, the price may be close to the range limit, and the user may modify the grid interval at this point. In Pionex APP, version 2.8.10, we launched the Edit Parameters function. Suppose the user needs to adjust the grid interval. In that case, the user can click the order’s Detail, find Parameter, and click Edit Order Parameters.
How to Select AI 2.0?
Open the Pionex APP, click the “Trade” at the bottom of the page, find the “Bot” at the top, and select the type of token you want to trade. Then click the “Create a bot” in the lower right corner and select the“Grid Trading Bot”.
AI Grid 2.0 will automatically calculate the current optimal grid strategy parameters. What you only need to do is to choose the amount to invest.
