Setting a Grid Bot's Range: The Parameter That Decides Everything

A grid bot places buy orders below the current price and sell orders above it, in 'grids' — it profits each time price oscillates across a grid line. The critical input is the range: the lower and upper bounds where orders are placed.

Range too narrow: small moves trigger frequent fills, but a breakout quickly exits the grid — the bot stops trading entirely. Range too wide: orders spread thin, so each oscillation triggers fewer fills and capital sits idle at the extremes.

What to base it on: look at the asset's recent support and resistance — a range that has historically contained price action is more likely to keep working. Volatile tokens need wider ranges; stable pairs can run tight grids.

The failure mode nobody mentions: when price exits the range downward, you're left holding inventory bought at the bottom of the grid — a real position with real loss if you stop the bot there. A grid range is a bet that price stays range-bound; treat the exit plan as seriously as the entry.