1. Trailing Up Profits Increase by 100% in a Bull Market!
2. What is a Trailing Up?
3. When Does the Grid Range Move?
4. Why Use Moving Averages?
5. Risks of Trailing Up

Trailing Up Profits Increase by 100% in a Bull Market!

Since July 2022, the cryptocurrency market has experienced a strong rebound, with BTC price bouncing from around $20,000 to around $25,000.

An investor activated Pionex's grid trading bot on July 1st, with an entry price of $19,000, setting the grid range with ±10% fluctuation from the latest price as the upper and lower limits:

As the market rallied, BTC's price broke above the grid range's upper limit. By the time the investor checked on the grid trading bot's status again, BTC's price had already risen to around $23,000.

Since the price exceeded the upper limit of the grid range at $20,900, the grid trading bot was in a cash-waiting state, missing out on this round of uptrend.

However! If the investor had enabled the "Trailing Up" feature, they would have perfectly captured this rally!

Pionex backtested the performance of trailing up and standard grids since July. The trailing up moves upward after the average price increases by 5%. With an initial grid range of ±10% from the price and an investment capital of 10,000 USDT:

The red line is the profit curve of the trailing up, and the blue line is the profit curve of the standard grid. In the bull market rally since July, compared to the standard grid, the trailing up's profits increased by 100%! The reason is that the trailing up automatically adjusts the grid range, increasing arbitrage profits. The holdings also benefited from the gains generated by the price appreciation.

If users enable the Trailing Up, they can effectively avoid missing out on uptrend gains.

In the example above, when the user enables the Trailing Up and sets it to trigger grid movement when the average price rises by 5%, the trailing up will automatically adjust the upper and lower limits of the grid range upward once the average price increases by 5%. The adjusted grid range becomes 17,955–21,945.

Without enabling the Trailing Up, when the price breaks above 20,900, the user would miss the subsequent uptrend. However, the Trailing Up automatically moves the range upward as the market rises, continuing to capture arbitrage profits!

The Trailing Up feature is located in the advanced parameters of grid trading:

The Trailing Up determines whether to move upward based on the moving average percentage change. The moving average percentage change refers to the percentage increase of the latest moving average value compared to the entry price (or the time of the last grid movement).

When users enable the Trailing Up, they set a "moving average gain threshold." When the moving average gain exceeds this threshold, the grid will move upward.

The Trailing Up uses a 720-minute moving average. Through backtesting comparisons, the 720-minute moving average can both filter out most sudden spikes that quickly fall back, and effectively capture uptrend movements.

So what is a 720-minute moving average? The 720-minute moving average is the average closing price of the past 720 one-minute candles. On Pionex's one-minute candlestick chart, you can search for "moving average" to select the moving average indicator:

Set the MA length (Length) to 720, and you will be able to see the 720-minute moving average:

For app users, you need to go from the candlestick chart page to the "Chart settings" page, and long-press click on "MA" to set the MA length

When the grid range moves upward, buying typically occurs. If you buy during a rapid price spike, you risk buying at the peak. Moving averages smooth out price fluctuations and effectively prevent buying at high prices.

For example, if grid movement is triggered based on a 5% price increase, a sudden price spike would cause the bot to adjust the range upward and buy at the peak price. However, if grid movement is based on moving average gain, the grid range would not move, avoiding losses from subsequent price pullbacks.

The Trailing Up moves upward when the market is in an uptrend, but it does not move downward when the market is declining. In case of a trend reversal, there is a risk that prices may fall below the lower limit of the grid range.