What is Leveraged Grid
Leveraged Grid is a more advanced trading strategy based on the grid bot. It uses leverage to amplify your investment and thus amplify your income.
For example, if you plan to invest 100 USDT in a leveraged grid bot and choose 3X leverage, then it is equivalent to investing 300 USDT to create the grid bot (200 USDT is loaned to you by pionex), and your actual investment is only 100USDT, the grid income is generated through this 300USDT, so it has achieved 3 times the profit.
How to use Leveraged Grid
First, please open the Pionex APP, click the “Trade“-“Bot” button in turn to enter the relevant page, and then click the “Create a bot” button at the bottom right corner of the page to enter the bot selection page, here we click “Leveraged Grid” to enter the bot parameters settings page.
Note: Currently only some trading pairs support Leveraged Grid Bot, among which BTC and ETH can support up to 5X leverage, and other currencies can support up to 3X leverage.
Explanation of settings
Upper price: When the price is higher than the upper price of the interval, the bot will no longer execute orders outside the grid interval.
Lower price: When the price is lower than the lower price of the interval, the bot will no longer execute orders outside the grid interval.
Grids: Divide the upper price of the interval and the lower price of the interval into corresponding shares.
Leveraged investment: The amount of funds expected to be invested in the Leveraged Grid (Own funds + Borrowed funds).
Borrowable fund: The total amount of funds available for borrowing on the current platform.
Current daily interest: The real-time lending rate in the current market.
Estimated liquidation price: If the currency price drops to the estimated liquidation price, the bot will perform forced liquidation to control risks.
Explanation of advanced settings
Trigger price: When the currency price reaches this price, the bot order is triggered to be created.
Stop loss: When the currency price drops to this price, the bot order will be automatically closed and the assets borrowed by the bot will be returned.
Take profit: When the currency price rises to this price, the bot order will be automatically closed and the assets borrowed by the bot will be returned.
Slippage control: Through parameter setting to control the deviation of the initial open final transaction average price and the price at the time of placing the order within a certain percentage range. (Due to the large volatility of the crypto market, when traders are trading, the final transaction price is often inconsistent with the price when the order is placed. At this time, you can control the slippage by opening the order limit price)
Grid mode-Arithmetic: When creating a grid strategy, the price interval of each grid of the arithmetic grid is equal (for example, 1, 2, 3, 4)
Grid mode-Geometric: When creating a grid strategy, the price range of each grid of the proportional grid is proportional (for example, 1, 2, 4, 8)
Explanation of order parameters
- Investment: The amount of assets invested when the leveraged grid bot is created
- Total profit: Grid profit + Unrealized profit
- Grid profit: Leveraged Grid buy low and sell high profit earned by arbitrage
- Unrealized profit: (Current price-position purchase cost) * number of bot tokens held-accumulated interest
- Grid annualized: [(Grid profit/investment amount)/(Lasting time/365)]*100%
- Total annualized: [(Total profit/investment)/(Lasting time/365)]*100%
Set up the case
Set the ETH/USDT Leveraged Grid, the price range is set to 1000-10000, the number of grids is 100, and the arithmetic mode.
Own funds 200USDT, choose 5X leverage, at this time the total investment amount will change.
When the price of ETH fluctuates in the price range of 1000-10000, you can achieve five times the grid revenue.
The borrowable fund pool shows the amount of money available for lending in the current fund pool. If the amount in the fund pool is insufficient, you will not be able to create a leveraged grid bot.
The most important part of the leverage grid is the leverage multiple setting. Before you fill in the investment amount, you need to set the leverage multiple. After the setting is completed, your maximum investable amount will be adjusted according to the leverage multiple you set. The maximum investable amount = own funds + borrowed funds, which means that if you choose 2X leverage, half of it belongs to your own funds, and the other half is the funds you borrowed.
To create a leverage grid, you need to pay a certain amount of interest (collected once every hour). The calculation method of interest will be calculated based on the current market’s daily interest rate. ).
Another parameter that needs special attention is the estimated liquidation price. When the currency price falls to the estimated liquidation price, the liquidation mechanism will be triggered. However, the advantage of leveraged grid compared with leveraged trading is that the grid profit earned by leveraged grid will become your margin, so the security of leveraged grid is much higher than that of leveraged trading.
Q: Why can’t the Leveraged Grid withdraw profit?
A: Because bots such as Leveraged Grids, Margin Grids, and Reverse Leveraged Grids need to borrow assets for leverage, and the bots do not support it in order to prevent the risk of liquidation after withdrawing profits.
Q: Can the order parameters be modified after the Leveraged Grid is created?
A: After the bot is successfully created, you cannot modify the price range, grid mode, grids and other parameters. The only parameters that can be modified here are the stop loss and take profit price.
Q: Will the interest paid by the Leveraged Grid be automatically deducted from the total profit?
A: The interest paid by the Leveraged Grid each time will be automatically deducted from the unrealied profit, and the total profit = unrealized profit + grid profit, so it will eventually be reflected in your total profit.
Q: If my Leveraged Grid is forced to liquidate, will all the assets in my pionex account be lost?
A: No. Because the assets you invest in the Leveraged Grid are independent of other assets in your account, even if your Leveraged Grid is forced to liquidate, it will not affect other assets in your account.
Q: When I closed the Leverage Grid, I chose to leave the coins to sell, but the bot still helped me sell the coins. What is the reason?
A: Because some of the assets held by Leverage Grid are assets that you borrowed from the platform. When the bot was closed, you need to return these assets first, so this will happen.
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