Grid Strategy Guide

Grid trading is a trading strategy that automates buying and selling of stocks. It involves placing a series of buy and sell orders at predefined intervals around a set price. This creates a 'grid' of orders, allowing you to profit from market volatility.

BharatBot uses a sophisticated arithmetic grid model inspired by Binance's strategy. Instead of allocating capital evenly across all grids, it allocates more capital to lower price levels (support) and less to higher price levels (resistance). This approach maximizes profit potential by buying more shares at cheaper prices during market dips and selling them as the price recovers.

• Stock: The NSE stock you want to trade.
• Price Range (Min/Max): The lower and upper boundaries of your trading grid.
• Number of Grids: The total number of buy/sell levels within your price range. More grids mean smaller price intervals and more frequent trades.
• Total Investment: The total amount of capital you wish to allocate to this bot.

The key is to set a grid spacing that is wide enough to cover brokerage costs and still leave a profit. A good rule of thumb is to aim for a net profit of at least ₹50 per trade. Since Upstox charges a flat ₹20 per executed order (buy + sell = ~₹40), your gross profit per trade should be around ₹60-₹70.

Stock: TATASTEEL, Investment: ₹1,00,000, Price Range: ₹170 - ₹173, Grids: 10. This setup would have a grid spacing of ₹0.30. If the bot buys at ₹170.30 and sells at ₹170.60, the gross profit is captured on that ₹0.30 movement. The bot's smart profitability check ensures trades are only made if they are profitable after costs.

Grid trading works best in sideways or volatile markets. In a strong, one-directional trend (either up or down), the bot may either sell all its holdings (in an uptrend) or accumulate a position and wait for a recovery (in a downtrend). It is crucial to select a price range you are comfortable with and understand the risks. The bot does not use a stop-loss by default, but you can manage your positions manually in your Upstox account at any time.