Grid Spacing Planner & Calculator
Grid spacing determines whether your strategy catches price bounces or sits idle. Too tight, and you pay excessive fees with tiny profits. Too wide, and price bounces back before hitting your orders. This planner helps you find the sweet spot.
Use the volatility check to compare your spacing against typical daily price swings. Optimal spacing is usually 1-2x your expected daily volatility.
Upper bound of your grid
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Total orders across the range
Grid Spacing
Spacing per Level
$1052.63
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Calculation Methodology
Grid spacing determines how far apart your buy orders are placed. Optimal spacing balances between catching price movements and avoiding excessive trading fees. This calculator uses even (linear) spacing.
Key Insight: Optimal spacing is typically 1-2x your expected daily volatility. If daily volatility is 3%, spacing of 3-6% works well. Tighter spacing (1-2%) means more frequent fills but smaller profits per trade. Wider spacing (5-10%) means fewer fills but larger swings.
Learn more about grid strategies:
Grid strategies guideExample Scenario
Setup: Range $40,000 to $60,000, 20 orders, 3% daily volatility
What this means: Each buy order is placed $1,053 (2.6%) apart. With 3% daily volatility, you'd expect most orders to fill within a few days. The spacing is well-matched to volatility, avoiding both over-trading and missed opportunities.
Note: If volatility drops to 1%, this spacing becomes too wide. If it increases to 5%, spacing becomes tight and you'll fill orders more frequently.
Common Mistakes & Warnings
- ⚠Spacing too tight: If spacing is less than daily volatility, you'll fill orders constantly. This increases fees and reduces profit per trade. Aim for 1-2x volatility.
- ⚠Range too narrow: If your range is only 10-15% wide, price will break out frequently. Grids work best with 30-50% ranges that cover normal trading conditions.
- ⚠Too many orders: More orders mean more fees. 20-30 orders is usually sufficient. Beyond that, you're paying fees without meaningful benefit.
- ⚠Ignoring volatility changes: Volatility isn't constant. A grid that works in 2% volatility may fail in 5% volatility. Monitor and adjust.
- ⚠Not accounting for fees: Each grid fill costs fees. If spacing is too tight, fees can eat 0.1-0.2% per trade, significantly reducing profitability.
Example Scenarios
Try these realistic scenarios to understand optimal grid spacing for different market conditions.
Scenario 1: Low Volatility Market
Tight spacing for low volatility. Catches small bounces but requires more orders.
Step-by-Step Calculation:
- Price range: $50,000 - $45,000 = $5,000 (10%)
- Spacing: $5,000 ÷ 19 = $263 per level
- Spacing %: ($263 ÷ $45,000) × 100 = 0.58%
- Volatility check: 0.58% < 1% ✓ (well-matched)
What this means: With 1% daily volatility, spacing of 0.58% means orders will fill frequently (most days). This is good for low volatility markets where you want to catch every small bounce.
Scenario 2: Moderate Volatility Market
Balanced spacing matching volatility. Standard approach for most markets.
Step-by-Step Calculation:
- Price range: $50,000 - $35,000 = $15,000 (42.9%)
- Spacing: $15,000 ÷ 19 = $789 per level
- Spacing %: ($789 ÷ $35,000) × 100 = 2.25%
- Volatility check: 2.25% ≈ 3% ✓ (well-matched)
What this means: With 3% daily volatility, spacing of 2.25% means orders will fill regularly (every few days). This balances frequency with profit per trade - the sweet spot for most traders.
Scenario 3: High Volatility Market
Wide spacing for high volatility. Fewer fills but larger profits per trade. ⚠️ Requires larger range
Step-by-Step Calculation:
- Price range: $50,000 - $25,000 = $25,000 (100%)
- Spacing: $25,000 ÷ 14 = $1,786 per level
- Spacing %: ($1,786 ÷ $25,000) × 100 = 7.14%
- Volatility check: 7.14% > 5% ⚠ (spacing wider than volatility)
What this means: With 5% daily volatility, spacing of 7.14% means orders will fill less frequently (maybe weekly). This is appropriate for high volatility where you want to catch larger swings and avoid over-trading.
Edge Case Warning: With 100% range, if price breaks below $25,000, your entire grid becomes inactive. Always set range bottom well below expected support levels in volatile markets.
What If Variations
Explore how changing parameters affects grid spacing:
What if I double the number of orders?
Using Scenario 2: Spacing drops from 2.25% to 1.13% (half). Orders fill twice as often, but you need 2x capital and pay 2x fees. Profit per trade is halved.
What if volatility increases to 8%?
Using Scenario 2: Spacing of 2.25% becomes too tight. Orders fill constantly, increasing fees. Should widen spacing to 4-6% to match new volatility level.
What if range is only 20% instead of 42.9%?
Using Scenario 2: Range becomes $50,000 to $40,000. Spacing drops to 0.53%. This is too tight for 3% volatility - orders will fill constantly. Need wider range or fewer orders.
Frequently Asked Questions
How tight should my spacing be?
Generally, spacing should be 1-2x your expected daily volatility. Tighter spacing means more frequent fills but smaller profits per trade. Wider spacing means fewer but larger swings.
Should spacing be even or geometric?
This calculator uses even (linear) spacing. Geometric spacing (percentage-based) can make sense for assets with large ranges. Both approaches have merits.
How do I know if my range is right?
Look at historical price action. Your range should cover normal trading conditions plus some buffer. If price breaks out of your range, your grid stops working.
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