Initial and Current Funds (Grid Bots)

For users of Gainium's automated cryptocurrency trading platform, understanding the nuances of grid bot trading is essential for effective strategy implementation. A key aspect is interpreting 'Initial Funds' and 'Current Funds' within your grid bot's performance metrics. This article aims to clarify these concepts, helping you make more informed trading decisions.

Understanding Initial Funds

Definition

Initial Funds represent the value of your investment when you set up your grid bot. This value is not just the starting amount but also reflects what this amount would be worth if you had chosen a simple "buy-and-hold" strategy instead of deploying a grid bot.

Importance

• Benchmarking: Initial Funds serve as a benchmark, helping you assess the performance of your grid bot against a passive investment strategy.
• Strategy Evaluation: By comparing the value of your Initial Funds with the Current Funds, you can evaluate the effectiveness of your grid bot strategy over time.

Understanding Current Funds

Definition

Current Funds indicate the present value of your funds managed by the grid bot. This includes any profits or losses incurred since the inception of the bot. Additionally, it provides insights like the breakeven price, enhancing your understanding of the bot's performance.

Key Insights

• Real-Time Valuation: Reflects the up-to-date value of your investment, accounting for market fluctuations and trading activities.
• Profit and Loss (PnL) Analysis: Offers a clear view of your bot's profitability, including the impact of market movements on your investment.

Interpreting PnL in Base Currency

When analyzing stats in the base currency, the PnL can appear counterintuitive:

• Negative PnL: Indicates an increase in the value of the base currency against the quote currency. This scenario suggests that a simple buy-and-hold strategy might have been more beneficial.
• Positive PnL: Implies a decrease in the value of the base currency against the quote currency. In this case, your grid bot has effectively capitalized on market movements to generate profit.

Why This Matters

• Strategy Adjustment: Understanding how PnL behaves in relation to currency value changes can guide you in adjusting your grid bot settings for optimal performance.
• Market Insight: This analysis helps in comprehending market trends and their impact on your trading strategy.

Conclusion

For Gainium users, grasping the concepts of Initial and Current Funds is crucial for a comprehensive understanding of grid bot performance. By effectively interpreting these metrics, you can refine your strategies, aligning them with market dynamics and your investment goals.