Two Ways to Space Your Grid
A grid’s levels can be distributed between the lower and upper bounds in two ways. Both are implemented in the trading engine; the create form currently builds arithmetic grids only, so this page is here for the reasoning rather than as a setting to change.
Arithmetic
Equal price distance
Each grid level is the same dollar/price amount apart.
$180, $190, $200, $210, $220 (each +$10)
Geometric
Equal percentage distance
Each grid level is the same percentage apart.
$180, $198, $218, $240, $264 (each +10%)
Arithmetic Mode
How It Works
The price range is divided into equal chunks. If your range is $180-$220 with 5 levels, each level is $10 apart.
Formula:
step = (upper - lower) / (levels - 1)
level[i] = lower + (step × i)
Best for:
- Tight price ranges (less than 50% spread)
- Stablecoin pairs or low-volatility assets
- When you want consistent trade sizes
Geometric Mode
How It Works
The price range is divided into equal percentage steps. If your range is $100-$200 with 5 levels and a 2x multiplier, each step is the same percentage increase.
Formula:
ratio = (upper / lower) ^ (1 / (levels - 1))
level[i] = lower × (ratio ^ i)
Best for:
- Wide price ranges (100%+ spread)
- Volatile assets that can swing significantly
- When you want equal percentage gains per trade
Side-by-Side Comparison
| Aspect | Arithmetic | Geometric |
|---|---|---|
| Level spacing | Equal $ amount | Equal % amount |
| Best range | Narrow (<50%) | Wide (>50%) |
| Profit per trade | Fixed $ amount | Fixed % amount |
| Complexity | Simpler to understand | Better for volatile assets |
Quick Decision Guide
Use Arithmetic if:
- • Your range is less than 50% wide
- • You're trading stable assets
- • You're new and want simplicity
Use Geometric if:
- • Your range is more than 50% wide
- • You're trading volatile assets
- • You want equal % gains per trade