Introduction to Quantitative TradingPractical

Understanding Grid Trading, Trend Trading, and "Do Not Trade"

Understand why the system uses different execution methods based on market conditions and remains in a wait state when there is insufficient evidence.

3 min readupdated on 2026-07-27
01

Grid trading is suitable for handling repeated fluctuations within a price range.

When the market meets the grid trading conditions, the system manages tiered trades within a stable price range. The exit price after a trade is executed is derived from the corresponding adjacent grid tier; it does not use the fixed yield temporarily estimated on the customer’s dashboard. The system will not blindly rebuild positions or continue adding to positions when the price structure breaks down, the market direction changes, or the transaction has not been reconciled.

02

Trend execution uses independent rules

When the market is confirmed to be in a trending state, the system applies the trend strategy’s own position and exit rules. Existing grid positions will continue to be managed according to their original grid lifecycle until completion; they cannot be arbitrarily transferred to another strategy simply because of a change in market conditions.

03

The decision to suspend trading is also an official one.

In cases of unclear direction, market mismatch, unreasonable fees or slippage, insufficient risk limits, or incomplete evidence, the system will either place the position under observation or prohibit the addition of new risk. Customers may not repeatedly click to initiate trades, increase their risk appetite, or contact customer service to request the forced generation of orders.

04

Customers control their risk preferences, not every individual trade signal.

Customers select their account mode and risk tolerance and can initiate a safety stop; the specific market direction, execution method, and order timing are determined by a unified strategy and the safety chain. This prevents both human traders and the system from competing for the same position simultaneously.

05

When market conditions change, strategy responsibilities must remain clear.

In range-bound, trending, and directionless markets, price structures and sources of risk differ. If a set of parameters does not distinguish between these market conditions, it is easy to continue mechanically adding to positions after a range-bound period ends, or to frequently trade against the trend. The purpose of a multi-strategy approach is to ensure that different methods are deployed only in the environments for which they are best suited.

Switching strategies does not mean arbitrarily handing over existing positions to a different set of rules. Positions created by the original strategy must still be managed according to their original lifecycle, while new market assessments primarily determine whether to allow additional risk. This ensures the integrity of order attribution, exit criteria, and result records.

06

After reading this, what should customers be able to do?

Truly understanding a knowledge article isn’t about memorizing a few terms, but about being able to make the right decisions based on actual page content and account status. Use the checklist below to verify whether you’ve grasped the key points.

  • Think of strategy adaptation as environment matching, not as frequently changing direction.
  • If the market direction is unclear, refrain from trading for the time being.
  • Do not require manual specification of the direction for each position opening.
  • When evaluating strategies, consider both their suitability for the trading environment and their risk performance.
07

Frequently Asked Questions

These questions are directly related to the content of this article. Answers are based on current platform rules and actual operational standards; however, when it comes to packages, percentages, the scope of available features, or account status, the information displayed on the customer dashboard and official statements shall prevail.

  • Can I force the bot to place an order immediately or specify the grid direction? | No. Customers can select their risk preference and initiate a safety stop, but the market direction, execution method, and order timing are determined by the unified strategy and safety controls. The platform will not force orders by lowering risk controls.
  • The bot has been launched, but why hasn’t it placed any orders yet? | Launching the bot simply means it has begun monitoring and checking conditions; it does not guarantee an immediate trade. Market direction, strategy conditions, fees, slippage, available funds, risk limits, data integrity, and exchange-specific factors must all be met simultaneously. It is normal for the bot to remain in a waiting state when conditions are not suitable.
  • Can a single exchange account run multiple bots? | Whether this is permitted depends on current product restrictions, account funds, and unified risk checks. Even if multiple bots are present, orders, open positions, risk exposure, and returns must be isolated by client and bot, and the account’s total risk will still be subject to a unified limit.
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