Grid algorithms set grids of trading orders based on the primary price trend. A grid of short orders is established for downward trends, and a grid of long orders is placed for upward trends.
Order networks possess a vast array of parameters:
- the number and step of safety orders
- martingale coefficient
- dynamic price step
- number of bot operation cycles
- grid width of orders
- margin
- dynamic liquidation price
- and others
These parameters, when combined, allow for the attainment of the most efficient results of algorithmic trading across a variety of exchange instruments.
Grid algorithms are primarily utilized for trading futures, options, and swaps, but may also be applied to public company shares under certain circumstances.