The base price is the core starting point of a grid strategy. Below is a detailed explanation with examples.

The base price is the initial reference price for grid strategy calculations. The system uses this price as a starting point, combined with the trigger conditions you set, to calculate grids above and below the base price. It then monitors the stock's market price in real time to detect whether it touches any grid. Once the market price triggers a grid (either upward or downward), the trigger price becomes the new base price, and new grids are recalculated based on the updated trigger conditions.

Example—grid trading with a base price of USD 172:

• When the price moves from 172 to 167:
  • From 172 to 170: Triggers a buy order of 2 shares of TSLA. The base price is updated from 172 to 170.
  • From 170 to 168: Triggers another buy order of 2 shares of TSLA. The base price is updated from 170 to 168.
  • From 168 to 167: No buy order is triggered.
• When the price moves from 167 to 170:
  • From 167 to 170: Triggers a sell order of 2 shares of TSLA. The base price is updated from 168 to 170.

Key takeaways:

• Role of the base price: Serves as the initial starting point for calculating and generating grids for pending buy and sell orders.
• Dynamic adjustment rules: After each triggered trading, the trigger price becomes the new base price, and subsequent grids are recalculated accordingly.
• Trigger mechanism: Trading is triggered only when the market price touches a grid level; no operation will be performed otherwise.

Disclosures

This article is for reference only and does not constitute any investment advice.