Strategies & Configurations

Recap of Spread Settings for Grid Mode

+5 = wait for ~5 bps profit before locking in 0 = locks profit as soon as it’s positive. May still lead to a net loss after exchange fees.

–1 = accept up to –1 bp loss to avoid stalling

The "Grid -1 bps" Strategy

The Grid -1 bps configuration is generally recommended for a balance of risk and reward for active markets. While it may seem counterintuitive to set a negative spread, this tactical concession is often statistically safer than waiting for larger profits.

Why It Works

• Reduces Stalling: It acts as a form of 'insurance' where you accept a tiny spread concession (-1 bp) on your limit order to improve fill probability instead of waiting for a profitable spread that may never materialize, which can result in stalling and eventually hitting the 50 bps hard stop-loss.

• Profit Clustering: In practice, results tend to cluster tightly around -1 bps to +1 bps. The high turnover volume often compensates for the smaller per-trade margin.

Recommended Strategies

Highly Liquid Majors during fast price action

• Example Assets: BTC-PERP or ETH-PERP

• Price Reference Mode: Grid Mode

• Spread: -1 bps

• Execution Mode: Aggressive (Passive means higher chance of 50 bp stop-loss)

• Trading Session: During New York trading Session (Monday–Friday, 9:30 a.m.–4:00 p.m. ET) during mid session with chop/non-trending environments but avoid:

  • Around US Market Open Bell (9:30 a.m. ET)

  • NY Closing Auction (4:00pm ET)

  • Major Macro Events: For example, Fed meetings, CPI Prints, major market fills.

• Rationale:

  • Faster In & Out: Majors move quickly. You want to enter and exit positions rapidly to minimize the chance of large directional trends building up against you.

  • Aggressive Execution: Ensuring priority in the queue is critical to getting the exit fill before the price moves.

  • Avoids Exposure Buildup: Short durations keep inventory lean, preventing the bot from accumulating a massive position that becomes hard/costly to unwind.

Range-Bound / Low-OI Assets

Price Reference Mode: Grid Mode

Spread: +5 bps

Execution Mode: Normal or Passive

Rationale:

• Perfect Grid Environment: Assets that exhibit clean, range-bound price action with minimal directional movement (chopping sideways with minimal directional trend) are exactly where Grid Bots excel. They will generate consistently positive PNL with assets that reliably respect support/resistance levels.

• Wider Spreads: Because these pairs lack strong directional drive, you can afford to wait. Setting a +5 bps spread allows you to capture significantly more profit per loop without a high risk of the price running away.

General Points Farming (e.g. Ventuals Maker Points Program)

For such low liquidity assets/markets, adjust your mindset before proceeding.

1. Check the Chart: Confirm the pair is actually sideways. If it is trending, do not run a Grid Bot.

2. Patience: Expect longer bot durations. Fills will be sporadic.

3. Trade-Off: Accept lower/zero profits (or even losses) in exchange for higher XP/Points.

Recommended Setup

• Reference: Mid Price Mode

• Spread: > +10 bps (or widest available)

Rationale:

• Objective: Specific to the Ventuals Maker program, points are awarded based on several factors, including but not limited to:

  • Size: The total volume of liquidity posted via maker/limit orders.

  • Distance: Limit orders placed away from the mid price still within a "reasonable range" of the mid-price to count.

  • Uptime: How continuously your quotes are present in the book throughout the week.

  • Two-Sidedness: Consistent activity on both Bid and Ask sides (Note: Asks are currently weighted more heavily than Bids, per Ventuals documentation).

  • Fill Quality: While the primary goal is providing liquidity, Ventuals also accounts for volume traded at competitive prices to prevent quotes from being "ghost liquidity" that never fills.

  The specific factor attribution to wards points distribution methodology is not disclosed. For comprehensive details on their program, please refer to their official documentation.

• Optimization:

  Placing orders at a moderate distance (e.g., +10 bps) is potentially optimal for this scoring model:

  1. Maximizes Uptime: It prevents your orders from being filled too quickly (which would remove your liquidity from the book and stop your "Uptime" clock).

  2. Optimizes Distance: It keeps your orders close enough to the mid-price to score well on the "Distance" metric, without being so close that you constantly cluster at the top level.

  3. Ensures Two-Sidedness: By sitting wider, you are more likely to maintain a balanced book on both sides for longer durations