GRID BOTS · CONCEPT GUIDE
In a grid, arithmetic mode keeps a fixed price gap. Geometric mode keeps a fixed percentage. This difference changes how buy and sell levels are distributed.
Arithmetic
Always adds the same amount to the previous price.
Example: +1,000 USD.
Geometric
Always applies the same percentage to the previous price.
Example: +1%.
An example: 1,000 USD versus 1%
We start at 100,000 USD. In arithmetic mode, we add 1,000 USD at each step. In geometric mode, we multiply the previous price by 1.01.
| Level | Arithmetic +1,000 USD | Geometric +1% |
|---|---|---|
| Start | 100,000 | 100,000 |
| 1 | 101,000 | 101,000 |
| 2 | 102,000 | 102,010 |
| 3 | 103,000 | 103,030.10 |
| 4 | 104,000 | 104,060.40 |
In arithmetic mode, the gap is always 1,000 USD. In geometric mode, 1% equals 1,000 USD first, then 1,010 USD, then 1,020.10 USD: the USD gap increases as the price rises.
The final prices differ here because we set one gap at 1,000 USD and the other at 1%. To compare their distribution with the same starting and ending prices, use the same range and grid count in the simulator.
What changes in profit per grid?
Arithmetic: the percentage gain between levels decreases as price rises. From 100,000 to 101,000 USD is 1%; from 101,000 to 102,000 USD is about 0.9901%, before fees.
Geometric: the gross percentage between levels is always the same: 1% in this example. If the same fee rate applies to each purchase and sale, the net percentage per cycle also stays constant in the model. In a real bot, it may vary slightly due to rounding and execution.
A 1% between levels does not mean 1% on all your capital, or a daily or monthly return. A cycle’s percentage refers to that purchase amount. Total profit depends on completed trades, costs and the value of the coins you retain.
Where are more levels located?
With the same range and grid count, geometric mode places relatively more levels in the lower area: its USD gaps are smaller there. Arithmetic mode spreads them evenly, leaving relatively more levels in the upper area than geometric mode.
This can change which purchases and sales execute during a decline or rise. More levels do not guarantee more profit or more coins. The price path, each order’s size and capital allocation also matter.
How to compare both modes
Keep the minimum price, maximum price, grid count and fees the same. Then compare both charts and the net profit per cycle. This helps you understand what changes with the selected mode.
The simulator shows theoretical levels and costs per cycle; it does not predict how many trades will complete or how much you will earn.
Both modes retain the asset’s risk. A Spot grid can close profitable cycles and lose total value if the coin falls.
This guide expands on the arithmetic and geometric section of the trading bots guide.