What a grid bot is and when it works

The idea in one paragraph

You split an amount into parts — rungs. Each rung buys the coin at its own level below the current price and sells it once the price has risen from that buy by a set percentage. Sold, it goes back to waiting at its level. The more often the price crosses a level up and down, the more completed trades.

Which market it suits

• Sideways and choppy: the price swings within a range. This is the market a grid was made for.
• A steady rise: rungs sell, but the bot soon holds no coins — it has nowhere higher to buy.
• A fall: rungs buy one after another and there is nothing to sell. The bot holds the coins and waits for a rebound.

What happens in a fall

This is the main thing to understand before starting. A grid buys on the way down. If the price drops and does not come back, every rung has bought, your money has become the coin, and the coin is worth less than you paid. The bot dumps nothing — it waits. But the wait can be long, and nobody promises the price comes back.

So a grid goes on a pair you would not mind holding, with an amount you would not mind being stuck with.

Where the profit comes from, and where it goes

A rung’s profit is the gap between its buy and its sell, minus two exchange fees. At 0.1% a trade, a round trip costs 0.2%. Set a 0.3% target and two thirds of it goes to the exchange. In Nexora a rung’s target cannot be below 1% — for exactly this reason.

Where to start

• Run the bot in paper mode: real prices, no real money.
• Run the same setup through a backtest on history.
• Move to real money with a small amount, and only once the bot’s behaviour on paper makes sense to you.