Grid Strategy

This guide explains how to run the Grid Trading Strategy using OpenMM's unified CLI interface.

Prerequisites

1. Environment Setup

   # Set your exchange API credentials
   
   # For MEXC
   export MEXC_API_KEY="your_api_key"
   export MEXC_SECRET_KEY="your_secret_key"
   
   # For Bitget
   export BITGET_API_KEY="your_api_key"
   export BITGET_SECRET="your_secret_key"
   export BITGET_PASSPHRASE="your_passphrase"
   
   # For Gate.io
   export GATEIO_API_KEY="your_api_key"
   export GATEIO_SECRET="your_secret_key"
   
   # For Kraken
   export KRAKEN_API_KEY="your_api_key"
   export KRAKEN_SECRET="your_secret_key"

2. Install Dependencies

   npm install
   npm run build

Quick Start

Basic Grid Strategy

MEXC Example:

# Start grid trading with default settings on MEXC
openmm trade --strategy grid --exchange mexc --symbol INDY/USDT

Bitget Example:

# Start grid trading with default settings on Bitget
openmm trade --strategy grid --exchange bitget --symbol SNEK/USDT

Gate.io Example:

# Start grid trading with default settings on Gate.io
openmm trade --strategy grid --exchange gateio --symbol SNEK/USDT

Kraken Example:

# Start grid trading with default settings on Kraken
openmm trade --strategy grid --exchange kraken --symbol ADA/EUR

Custom Configuration

MEXC Advanced Grid:

# Advanced grid with custom parameters on MEXC
openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 5 \
  --spacing 0.02 \
  --size 50 \
  --max-position 0.6 \
  --safety-reserve 0.3

Bitget Advanced Grid:

# Advanced grid with custom parameters on Bitget
openmm trade --strategy grid --exchange bitget --symbol SNEK/USDT \
  --levels 3 \
  --spacing 0.015 \
  --size 25 \
  --max-position 0.7 \
  --safety-reserve 0.3

Kraken Advanced Grid:

# Advanced grid with custom parameters on Kraken
openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 4 \
  --spacing 0.01 \
  --size 15 \
  --max-position 0.6 \
  --safety-reserve 0.25

Command Options

Required Parameters

• --strategy grid - Specifies grid trading strategy

• --exchange <exchange> - Exchange to trade on (supports: mexc, bitget, gateio, kraken)

• --symbol <symbol> - Trading pair (e.g., INDY/USDT, SNEK/USDT, ADA/EUR, BTC/USD)

Grid Parameters

• --levels <number> - Grid levels each side (default: 5, max: 10, total orders = levels x 2)

• --spacing <decimal> - Base price spacing between levels (default: 0.02 = 2%)

• --size <number> - Base order size in quote currency (default: 50)

• --confidence <decimal> - Minimum price confidence to trade (default: 0.6 = 60%)

• --deviation <decimal> - Price deviation % to trigger grid recreation (default: 0.015 = 1.5%)

• --debounce <ms> - Delay between grid adjustments (default: 2000ms)

• --max-position <decimal> - Maximum position size as % of balance (default: 0.8 = 80%)

• --safety-reserve <decimal> - Safety reserve as % of balance (default: 0.2 = 20%)

• --dry-run - Simulate trading without placing real orders

Dynamic Grid Parameters

These parameters control how order levels and sizes are distributed across the grid:

• --spacing-model <model> - How spacing between levels is calculated (default: linear)

  • linear - Equal spacing between all levels

  • geometric - Spacing increases by a factor per level (wider gaps at outer levels)

  • custom - User-defined spacing offsets via grid profile file

• --spacing-factor <number> - Geometric spacing multiplier per level (default: 1.3)

• --size-model <model> - How order sizes are distributed across levels (default: flat)

  • flat - Equal size for all levels

  • pyramidal - Larger sizes near center price, smaller at outer levels

  • custom - User-defined weight multipliers via grid profile file

• --grid-profile <path> - Load complete grid configuration from a JSON profile file

Volatility Parameters

These parameters control automatic spread adjustment based on market volatility:

• --volatility - Enable volatility-based dynamic spread adjustment (off by default)

• --volatility-low <decimal> - Low volatility threshold (default: 0.02 = 2%). Below this, grid spacing stays normal.

• --volatility-high <decimal> - High volatility threshold (default: 0.05 = 5%). Above this, grid spacing is widened maximally.

Dynamic Grid Configuration

Spacing Models

Linear (default): Equal spacing between all levels. With --spacing 0.02 and 5 levels, each level is 2% apart:

Level 1: 2% from center
Level 2: 4% from center
Level 3: 6% from center
Level 4: 8% from center
Level 5: 10% from center

Geometric: Each level's gap is multiplied by the spacing factor. This creates tighter spacing near the center price and wider gaps at the outer levels, which is more realistic for market making:

openmm trade --strategy grid --exchange kraken --symbol BTC/USD \
  --levels 5 --spacing 0.005 --spacing-model geometric --spacing-factor 1.5

With --spacing 0.005 and --spacing-factor 1.5:

Level 1: 0.50% from center (gap: 0.50%)
Level 2: 1.25% from center (gap: 0.75%)
Level 3: 2.38% from center (gap: 1.13%)
Level 4: 4.06% from center (gap: 1.69%)
Level 5: 6.59% from center (gap: 2.53%)

Custom: Define exact spacing offsets per level using a grid profile file (see Grid Profiles section below).

Size Models

Flat (default): All levels get equal order sizes.

Pyramidal: Larger orders near the center price where fills are more likely, tapering at outer levels:

openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 5 --size 50 --size-model pyramidal

Custom: Define exact size weight multipliers per level using a grid profile file.

Grid Profiles

Grid profiles are JSON files that define a complete grid configuration. This is useful for:

• Full per-level control over spacing and sizing

• Sharing and version-controlling configurations

• Quickly switching between strategies

Basic profile (geometric spacing, pyramidal sizing):

{
  "name": "balanced-geometric",
  "description": "Geometric spacing with pyramidal sizing for balanced market making",
  "levels": 10,
  "spacingModel": "geometric",
  "baseSpacing": 0.005,
  "spacingFactor": 1.3,
  "sizeModel": "pyramidal",
  "baseSize": 50
}

Custom profile (full per-level control):

{
  "name": "custom-aggressive",
  "description": "Custom spacing and sizing for aggressive market making",
  "levels": 5,
  "spacingModel": "custom",
  "customSpacings": [0.003, 0.008, 0.015, 0.025, 0.04],
  "sizeModel": "custom",
  "sizeWeights": [2.0, 1.5, 1.0, 0.7, 0.4],
  "baseSpacing": 0.003,
  "baseSize": 50
}

Using a profile:

openmm trade --strategy grid --exchange gateio --symbol SNEK/USDT \
  --grid-profile ./profiles/balanced-geometric.json

Profile values override corresponding CLI parameters.

Trading Examples

Conservative Trading Strategies

MEXC - Conservative INDY Trading:

openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 3 \
  --spacing 0.01

Bitget - Conservative SNEK Trading:

openmm trade --strategy grid --exchange bitget --symbol SNEK/USDT \
  --levels 2 \
  --spacing 0.02 \
  --size 20

Kraken - Conservative ADA Trading:

openmm trade --strategy grid --exchange kraken --symbol ADA/EUR \
  --levels 3 \
  --spacing 0.015 \
  --size 10

Active Trading Strategies

MEXC - Active BTC Trading:

openmm trade --strategy grid --exchange mexc --symbol BTC/USDT \
  --levels 7 \
  --spacing 0.005 \
  --size 25

Bitget - Active NIGHT Trading:

openmm trade --strategy grid --exchange bitget --symbol NIGHT/USDT \
  --levels 5 \
  --spacing 0.025 \
  --size 30 \
  --max-position 0.6

Kraken - Active ETH Trading:

openmm trade --strategy grid --exchange kraken --symbol ETH/USD \
  --levels 6 \
  --spacing 0.008 \
  --size 40 \
  --max-position 0.7

Dynamic Grid Strategies

1. Linear Spacing + Flat Sizing (default behavior):

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 5 \
  --spacing 0.02 \
  --size 5

2. Geometric Spacing + Flat Sizing:

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 10 \
  --spacing 0.003 \
  --spacing-model geometric \
  --spacing-factor 1.3 \
  --size 5

3. Geometric Spacing + Pyramidal Sizing:

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 10 \
  --spacing 0.005 \
  --spacing-model geometric \
  --spacing-factor 1.5 \
  --size-model pyramidal \
  --size 5

4. Linear Spacing + Pyramidal Sizing:

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 8 \
  --spacing 0.01 \
  --size-model pyramidal \
  --size 5

5. Geometric with Aggressive Factor (wider outer levels):

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 10 \
  --spacing 0.002 \
  --spacing-model geometric \
  --spacing-factor 2.0 \
  --size-model pyramidal \
  --size 5

6. Profile-Based Grid (custom JSON config):

openmm trade --strategy grid --exchange gateio --symbol SNEK/USDT \
  --grid-profile ./profiles/aggressive.json

7. Multi-Exchange Dynamic Grid:

# MEXC - Geometric + Pyramidal
openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 10 \
  --spacing 0.005 \
  --spacing-model geometric \
  --spacing-factor 1.3 \
  --size-model pyramidal \
  --size 5

# Bitget - Linear + Pyramidal
openmm trade --strategy grid --exchange bitget --symbol SNEK/USDT \
  --levels 7 \
  --spacing 0.01 \
  --size-model pyramidal \
  --size 5

# Gate.io - Geometric + Pyramidal
openmm trade --strategy grid --exchange gateio --symbol SNEK/USDT \
  --levels 8 \
  --spacing 0.004 \
  --spacing-model geometric \
  --spacing-factor 1.4 \
  --size-model pyramidal \
  --size 5

Volatility-Based Spread Adjustment

When enabled with --volatility, the grid automatically widens during volatile market conditions and tightens when the market calms down. The system tracks price changes over a rolling 5-minute window (10 samples at 30-second intervals) and calculates volatility as the price range divided by the average price.

How it works:

• Volatility below low threshold (default 2%): Normal grid spacing (multiplier 1.0x)

• Volatility between thresholds: Elevated spacing (multiplier 1.5x)

• Volatility above high threshold (default 5%): Wide spacing (multiplier 2.0x)

8. Volatility with default thresholds (2% low, 5% high):

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 5 \
  --spacing 0.01 \
  --size 5 \
  --volatility

9. Volatility with custom thresholds (tighter sensitivity):

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 5 \
  --spacing 0.01 \
  --size 5 \
  --volatility \
  --volatility-low 0.01 \
  --volatility-high 0.03

10. Volatility combined with geometric spacing:

openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 10 \
  --spacing 0.005 \
  --spacing-model geometric \
  --spacing-factor 1.3 \
  --size-model pyramidal \
  --size 5 \
  --volatility

Test Mode (No Real Orders)

MEXC Test:

openmm trade --strategy grid --exchange mexc --symbol INDY/USDT --dry-run

Bitget Test:

openmm trade --strategy grid --exchange bitget --symbol SNEK/USDT --dry-run

Gate.io Test:

openmm trade --strategy grid --exchange gateio --symbol SNEK/USDT --dry-run

Kraken Test:

openmm trade --strategy grid --exchange kraken --symbol ADA/EUR --dry-run

Dynamic Grid Test:

openmm trade --strategy grid --exchange mexc --symbol INDY/USDT \
  --levels 10 --spacing-model geometric --dry-run

Volatility Test:

openmm trade --strategy grid --exchange kraken --symbol SNEK/EUR \
  --levels 5 --spacing 0.01 --size 5 --volatility --dry-run

Risk Management

The Grid Strategy includes built-in risk management:

Configurable Risk Limits

Users can customize risk management through CLI parameters:

• --max-position 0.6 - Use max 60% of balance for trading (default: 80%)

• --safety-reserve 0.3 - Keep 30% as safety reserve (default: 20%)

• --confidence 0.8 - Require 80% price confidence (default: 60%)

Automatic Position Sizing

When using flat sizing, the system distributes the base order size equally across all levels. With pyramidal sizing, larger allocations are placed near the center price where fills are more likely, with smaller orders at the edges.

Total allocation is automatically capped at 80% of available balance regardless of the size model used.

Price Confidence Filtering

• Only executes trades when price confidence >= minimum threshold

• Sources price data from Cardano DEX via Iris API

• Prevents trading on unreliable price data

Dynamic Grid Management

• Recreates grid when orders are filled

• Adjusts to significant price movements (configurable via --deviation)

• Cancels and replaces orders as needed

• Debounce mechanism prevents rapid-fire grid recreation

Monitoring Your Strategy

Real-time Updates

The strategy provides live feedback:

🚀 Starting Trading Strategy
Strategy: GRID
Exchange: KRAKEN
Symbol: BTC/USD
Grid Levels: 10 per side (20 total)
Grid Spacing: 0.3%
Spacing Model: geometric
Spacing Factor: 1.3
Size Model: pyramidal
Order Size: $50
Max Position: 80%
Safety Reserve: 20%

⚙️  Creating strategy...
✅ Strategy initialized successfully
🔄 Starting strategy...
📊 Grid Configuration:
  Levels: 10 per side (20 total orders)
  Spacing Model: geometric
  Base Spacing: 0.30%
  Spacing Factor: 1.3
  Size Model: pyramidal
  Base Size: $50
✅ Strategy is now running!
Press Ctrl+C to stop the strategy gracefully

Graceful Shutdown

# Stop the strategy cleanly
Ctrl+C

The system will:

1. Cancel all open orders

2. Disconnect from exchange

3. Display final status

Troubleshooting

Common Issues

Invalid credentials (MEXC):

Error: MEXC credentials not found

Solution: Verify MEXC_API_KEY and MEXC_SECRET_KEY environment variables

Invalid credentials (Bitget):

Error: Bitget credentials validation failed

Solution: Verify BITGET_API_KEY, BITGET_SECRET, and BITGET_PASSPHRASE environment variables

Invalid credentials (Gate.io):

Error: Gate.io credentials not found

Solution: Verify GATEIO_API_KEY and GATEIO_SECRET environment variables

Invalid credentials (Kraken):

Error: Kraken authentication failed

Solution: Verify KRAKEN_API_KEY and KRAKEN_SECRET environment variables

Minimum order value (Bitget/MEXC):

Error: Bitget order value 0.50 USDT is below minimum 1 USDT

Solution: Increase --size parameter or reduce number of --levels to ensure each order meets 1 USDT minimum

Minimum order value (Kraken):

Error: Kraken order value 3.50 EUR is below minimum 5 EUR

Solution: Increase --size parameter or reduce number of --levels to ensure each order meets 5 EUR/USD minimum

Low price confidence:

Error: Price confidence too low: 0.4 < 0.6

Solution: Lower --confidence threshold or wait for better price data

Price precision error (Bitget):

Error: param price scale error

Solution: This is automatically handled by the system's precision formatting. If you see this error, please report it as it indicates a system issue.

Insufficient balance:

Error: No balance found for USDT

Solution: Ensure sufficient USDT balance in your exchange account

Invalid grid profile:

Error: Grid profile file not found: ./profiles/my-config.json

Solution: Verify the profile file path exists and contains valid JSON

Invalid spacing/size model:

Error: Invalid spacing model: abc. Must be: linear, geometric, or custom

Solution: Use one of the supported models: linear, geometric, or custom for spacing; flat, pyramidal, or custom for sizing

Exchange-Specific Notes

Bitget Requirements:

• Minimum order value: 1 USDT per order

• Price precision: 6 decimal places for SNEK/NIGHT pairs

• Quantity precision: 2 decimal places for SNEK/INDY/NIGHT pairs

• Requires API key, secret, and passphrase for authentication

MEXC Requirements:

• Minimum order value: 1 USDT per order

• Flexible precision handling

• Requires API key and secret for authentication

Gate.io Requirements:

• Minimum order value: 1 USDT per order

• Requires API key and secret for authentication

Kraken Requirements:

• Minimum order value: 5 EUR/USD/GBP per order

• Price precision: Maximum 6 decimal places

• Quantity precision: 2 decimal places for ADA, 6-8 for BTC/ETH

• Requires API key and secret for authentication

• Supports major fiat pairs (EUR, USD, GBP) and crypto pairs