Limit Mode

The Limit Grid strategy adapts grid trading for more volatile market conditions where capturing larger price movements takes priority. While centralized exchanges implement grid trading through a series of limit orders at specific price levels, Gridix introduces an innovative approach optimized specifically for on-chain execution.

This design choice reflects careful consideration of blockchain's unique characteristics. Rather than replicating the complex limit order mechanics of centralized exchanges—which would require intricate on-chain logic and result in prohibitive gas costs—Gridix implements an efficient "Price Trigger" system based on price movement intervals. This approach significantly reduces computational complexity and transaction costs while maintaining the core benefits of grid trading.

Example

To illustrate this strategy, consider trading a volatile token priced at $100. A trader might establish a Limit Grid with a price range from $50 to $150, using $10 arithmetic spacing between grid levels. Instead of placing traditional limit orders at predefined price points like $90, $80, $70 (for buys) and $110, $120, $130 (for sells), the protocol executes trades based on price movement from the last execution point.

For example, if the last execution occurred at $100 and the price moves to $110 (a full $10 grid interval), the protocol triggers a sell order. This $110 price then becomes the new reference point. If the price subsequently drops to $100 (another full grid interval down), the protocol executes a buy order, and $100 becomes the new reference. This movement-based approach continues throughout the trading range, with each execution establishing a new baseline for calculating the next trading opportunity.

When the market experiences high volatility, such as the price jumping from $100 to $120, the protocol executes a single trade at the first grid crossing ($110), rather than attempting to fill multiple orders. This mechanism proves particularly gas-efficient compared to traditional limit order approaches, as it requires fewer on-chain transactions while still capturing significant price movements.

This price movement-based approach proves especially effective for assets with substantial volatility, such as new token launches or during major market events. By optimizing for on-chain execution, the strategy maintains high gas efficiency while capturing profitable trading opportunities. The arithmetic grid spacing ensures consistent trading opportunities across the entire price range, making it particularly suitable for markets where potential profits significantly exceed transaction costs.