These strategies are used in automated trading and are especially popular when using grid bots or in DCA (dollar-cost averaging) strategies. They help manage capital effectively by placing buy or sell orders according to preset rules.

1. Arithmetic (arithmetic intervals)

Orders are placed at equal distances in price.

Where it is applied:

Trading in narrow ranges.

Stable markets with low volatility.

How to calculate: Let's take a price range, for example, $10–$20, and divide it into 5 equal parts:

Interval = (20 - 10) ÷ 5 = $2.

Order levels: $10, $12, $14, $16, $18, $20.

Example: If the price moves from $10 to $20, the bot will buy the asset every $2 drop in price and sell every $2 rise.

2. Geometric (geometric intervals)

The distance between orders increases exponentially (Exponentially means a way in which values grow (or decrease) with acceleration.

Where it is applied:

Volatile markets.

Trending movements with sharp jumps.

How to calculate:

Let's take the same range of $10–$20 and divide it into 5 parts with a growth factor, for example, 1.5:

Order levels: $10, $12, $15, $19, $25.

Here the step between levels increases (12–10=2, 15–12=3, etc.).

Example: If the asset rises sharply, the bot will be able to place orders at significant levels to secure a larger profit.

How to choose a strategy?

1. If the market is stable - Arithmetic will do. It doesn't require a large capital and works on small changes.

2. If the market is volatile - choose Geometric. It allows capturing the trend but requires a larger deposit.

Example of strategy work

Situation: The asset is trading in the range of $10–$20. You want to use a grid bot.

1. Arithmetic: The bot will buy 10 coins at $10, 12, 14, 16, 18 and sell them at each level above.

2. Geometric: The bot will first buy more coins at low levels (10, 12), but with smaller volumes at high levels (15, 19).

Arithmetic is better for a calm market, while Geometric is for strong movements. The choice depends on your goals and analysis.

P.S. Binance supports grid trading (Grid Trading), where you can set both types of intervals:

Arithmetic: Include equal intervals when creating a grid bot.

Geometric: Manually set the intervals with increasing distance between levels.

If standard tools do not fit, you can write your own bot using the Binance API to create an automated strategy.

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