What is GRID-bot

GRID-bot is a trading automation tool that places paired orders (buy+sell) within a specified price range. Inside the range there are many such pairs, at a selectable price step from each other. Each pair of orders is considered a separate deal (cycle) on the Veles platform, while on the exchange they are aggregated into one position.

Operating principle

When you launch the bot, a grid of limit opening orders is placed on the exchange in accordance with the specified settings.

A cycle is considered open only when the opening order is executed. In this case, a corresponding closing order is immediately created.

The cycle is considered closed when the closing order of the pair is executed, and the profit for the cycle is calculated. After that the opening order is restored, the level is ready for work again.

Trading Directions

The GRID bot can be configured to open trades only in the long direction (creating a long position on the exchange), only in the short direction (working with a short position on the exchange), or in both directions (creating both long and short positions on the exchange).

Example of a GRID-bot in long:

Example of a GRID-bot in short:

Example of a neutral GRID-bot:

Differences between DCA and GRID

Parameter	DCA Bot	GRID Bot
Core principle	Accumulates and averages the total position, then closes the trade based on specified conditions	Trades within a set price range using a grid of linked orders
Primary goal	Improve the average deal price and close the whole deal	Repeatedly fix profits from price movements between grid levels
Trading structure	Single trade: opening order, averaging orders, closing the whole volume	Multiple independent grid cycles within a single aggregated position
Trading cycle	Result fixed after the entire trade closes	Results fixed separately after each GRID pair of orders
Available algorithms	Long, Short	Long, Short, Neutral
Suitable market	Directional movement with potential pullbacks	Predominantly price movement within a flat range
Primary risk	Strong movement against the position increases its size and drawdown	Price moving outside the range boundaries can lead to position growth and rising unrealized losses

Trading Risks

Since a GRID bot places orders only within specific limits, it performs most effectively when the price is moving sideways. If the price breaks out of the bot’s operating range, you need a plan for closing the position, as it will accumulate a significant negative PnL.

Fees

The Veles service fee is charged after the cycle closing. A standard rate is 20% of the gross profit.

An exception applies to deals made using the Veles Broker API key, where the service fee is 0%.

Fees for GRID trades count within the futures trading commission limit (i.e., they increase the “Futures” paid-fee counter).