Hello everyone, today I will bring you the historical data backtest of BTCUSDT grid trading. We tested the BTCUSDT earnings in 2020, 2021, 2022, and 2023 in stages. Without further ado, let's get straight to the point.
Let me explain the concept of income. The income here refers to the pure grid income, and does not include floating profit and loss. That’s why the income here seems much lower than others. Why do many places have grid income with a rate of return of tens or hundreds of percent? Because floating income is included and then converted into annualized rate. For example, if a BTC grid is opened one day, and Bitcoin soars by 15% that day, then the income will be very high. Then, multiply the income by 365 days, so the result will be very beautiful. But in fact, it may soar today and then plummet half a month later, and all the previous floating income will be eliminated.
The following is a detailed explanation of the parameters of this test
1. Price data source: Binance's spot "BTCUSDT" K-line 1s level historical data. Due to the large number of K-lines, I only extract data for ten seconds, that is, 10, 20, 30, 40, 50, 60 seconds of data
2. The data is backtested from 08:00 on January 1st of each year to 08:00 on January 1st of the following year.
3. The cumulative income displayed does not deduct the handling fee. The handling fee in brackets is calculated as 1/1000
4. The interval of the grid parameters is set as follows: the starting price is 50% of the price at the beginning of the year, and the ending price is the price at the beginning of the year X1.5. If the coin price exceeds the interval, the ending price will be multiplied by 1.5. For example, if the price at the beginning of 2021 is 28782, then the final price is 28782*1.5*1.5=64759
5. Grid parameters: (Investment amount 10000 USDT), (Number of grids: 300), (Geometric grid), (Earning oil mode), (Increase of each grid 1.88%)
6. The income part only includes the grid income and does not include floating profit and loss.
7. If your floating profit and loss is negative at the end of the year, you can choose to switch to ETHBTC to continue to open the grid, or you can convert your Bitcoin
To sum up, the grid income does not seem to be particularly high on paper, but it is still very considerable when the floating income is added. Except for the negative floating income in 2022, the income in the other three years is positive. In addition to the income generated by the grid, we can also use the idle funds of the grid for "funding rate arbitrage", "BNB hedging", "can serve as margin", "pledge, staking", so your income can normally increase by three or four points on the original rate of return.
