What’s the difference between Grid Profit, Unrealized Profit, and Total Profit| Know Grid Trading bot better!
Grid Trading Bot is one of the most popular trading bots on Pionex.
Now over 80% of traders use it to automate their trading 24/7. It’s very easy to set up one Grid Trading bot. You can use AI strategy, or you can set parameters by yourself with your understanding, then tap the「Create」button, Your Bot will get started!
Once you get started with Grid Trading bot, you should be happy and thankful because you start a new journey of trading — the evolutional and advanced auto trading times.
The tutorial to show you how to set it up step by step >
The video to show you how the grid bot works >
“What’s the grid profit and unrealized profit? what I can finally earn?” so many friends ask me this similar question.
We can see 3 different profits of the Grid Trading bot, and I will explain them clearly one by one. Firstly, total profit is the final profit you can get once you stop the bot. And total profit = grid profit + unrealized profit.
Grid profit - The bot buys low and sells high to arbitrage for you
As we all know, the bot will place some buy and sell orders within the price range. If the current price fluctuates within the price range to trigger some buy and sell orders. Then the bot will make some grid profit.
As the picture shows, my bot has made 270 transactions, and one buy and one sell is called one transaction. So one of these transactions shows as follows:
(1) Buy BTC at the price $31,140 with 6.228 USDT
(2) Sell BTC at the price $31,744 to get 6.348 USDT
(3) The bot made (6.348 USDT- 6.228 USDT=0.120 USDT) as grid profits. And now the total grid profit is $137.
The longer the bot runs, the more grid profit you can earn
This is one of my running bots, which made different grid profits running for different days. The first picture shows that my bot ran over 53 days, made $143 as grid profit. And the second picture shows that my bot ran over 72 days, made $262 as grid profit. So we can simply feature out that the longer the bot runs within the price range, the more grid profit you can get.
So don’t always cancel your bots if your bots have the good performance ;)
Unrealized Profit is always changing according to the price
Some friends ask me why sometimes unrealized profit is positive, sometimes it’s negative. Because the unrealized profit is to show you the BTC value in USDT at the current price ( BTC/USDT as an example), As we all know, the bot will place some BTC sell orders and buy orders, which means that the bot keeps some BTC. So the BTC price matters a lot.
Here is the formula to calculate the unrealized profit:
Unrealized profit =BTC holdings * ( current price- Holdings buy price)
So my Unrealized profit for this running bot =0.0128*($31,457- $24,008)≈ $95.
My BTC Grid Trading bot with wide price range
Because I think Bitcoin will pump over 100K. So I set a wide price range (10K to 100K) and 150 Grids as a long term strategy way to trade Bitcoin. And now I have made $420 total profit. If you agree with my opinion, you can create the same bot as me, here you go ;)
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