Complete Calculation Logic of Grid Profit: Four Steps to Master the Revenue of Contract Robots

Before starting to use a grid trading bot, you must understand how grid profits are calculated. While grid profit may seem complex, mastering four key indicators allows you to fully control your earnings. This article will delve into how grid profits accumulate step by step and how to determine exactly how much your bot has earned.

The Core Source of Grid Profit: How Is Single-Trade Profit Calculated?

The foundation of grid profit is the gain from each buy and sell. When the grid bot automatically executes trades as prices fluctuate, each completed trading cycle generates a grid profit.

Suppose we set the following parameters:

• Trading pair: BTCUSDT
• Current market price: $20,248.50
• Price range: $10,000 to $30,000
• Total number of grids: 5
• Leverage: 2x
• Distance between grids: $4,000

When BTC price drops to $18,000, the bot automatically buys; when the price rebounds to $22,000, it automatically sells. This complete cycle results in a grid profit.

Grid profit calculation formula:

Grid profit = Price difference × Quantity per trade × Number of trades − Fees

In the above example:

• Price difference: $4,000
• Quantity per trade: 0.152 BTC
• Number of trades in one cycle: 1
• Fees paid: $3.344

Actual calculation: Grid profit = 4,000 × 0.152 × 1 − 3.344 = $604.656

Note that fees are paid by both the buy and sell orders. In this example:

• Buy fee = 0.152 × $18,000 × 0.055% = $1.584
• Sell fee = 0.152 × $22,000 × 0.055% = $1.760
• Total fees = $3.344

This means the single-grid profit already accounts for platform costs. The system automatically ensures that each grid cycle’s profit exceeds fees before activating the bot.

Viewing Grid Profit from an Annual Perspective: From Daily Gains to Yearly Expectations

Single-cycle grid profit is a static number, but looking over a longer timeframe allows us to estimate annual return potential. This is the concept of grid annualized yield.

Grid annualized return (APR) calculation formula:

Grid APR = [(Grid profit ÷ Initial investment) ÷ Running days × 365] × 100%

Using the previous example:

• Grid profit: $604.656 (generated over 24 hours)
• Initial investment: $10,000
• Running days: 1

Calculation: Grid APR = [(604.656 ÷ 10,000) ÷ 1 × 365] × 100% = 22.06%

This suggests that if the bot runs at the same efficiency continuously for a year, it could theoretically achieve a 22.06% annual return. Actual results will vary with market volatility.

Note: If the running time is less than a day, the system calculates it as one day to prevent overestimating high-frequency trading data.

Impact of Open Positions: Why Are Unrealized Profits and Losses Included in Total Profit?

Grid profit is only part of the story. When the bot is still running, some positions may not have been closed, and unrealized gains or losses are also included in total profit calculations.

Complete total profit formula:

Total profit = Realized gains + Unrealized gains/losses

Where realized gains include:

• Profits/losses from closed positions
• Minus paid fees
• Plus or minus funding costs (if applicable)

For example, trader A’s actual case: after running for 2 days and 18 hours before closing:

• Realized grid profit: $1,214.66
• Fees paid: $1.3376
• Funding costs: +$2.5 (returned by exchange)
• Unrealized loss on open positions: −$20

Total profit calculation: $1,214.66 − 1.3376 + 2.5 − 20 = $1,195.8224

This case shows that total profit includes not only confirmed grid trading gains but also market price fluctuations affecting open positions.

Long-Term Holding Expectations: The Significance of Total Annualized Return

Finally, considering long-term holding, the total annualized return reflects the true annual profit potential after accounting for all costs and unrealized gains/losses.

Total annualized return (APR) calculation:

Total APR = [(Total profit ÷ Initial investment) ÷ Total days × 365] × 100%

In trader A’s case:

• Total profit: $1,195.8224
• Initial investment: $10,000
• Total days: 2.75 (2 days 18 hours)

Calculation: Total APR = [(1,195.8224 ÷ 10,000) ÷ 2.75 × 365] × 100% ≈ 21.82%

Compared to the single-grid annualized yield of 22.06%, the total annualized return is slightly lower, reflecting the impact of floating losses and fees.

Key distinctions:

• Grid annualized yield: based solely on completed grid trades
• Total annualized return: reflects actual money change, including all costs and open position impacts

Understanding this difference is crucial, as it helps evaluate the bot’s real performance rather than being misled by idealized figures. When the bot is closed, the final grid profit is calculated based on this logic.

Practical Recommendations for Calculating Grid Profit

Once you master these four calculation dimensions, you can set your bot parameters more rationally. Remember: wider price ranges and more grids generally mean more profit opportunities but also higher risks and potential floating losses. Choose configurations that suit your risk appetite to ensure steady growth of your grid profits.