What's grid trading - dormancy state?

Dormancy mode is a state in grid trading where the system automatically pauses trigger orders but continues to monitor the market under specific conditions. It is designed to avoid invalid operations and automatically restart when conditions are restored.

1. Introduction to the dormancy mode

Once grid trading enters dormancy mode, grid trading conditional orders follow the following rules:

• Pause the triggering of any new orders.
• Continue to monitor stock price changes and condition fulfillment.
• Maintain the latest base price as it was before the last trigger failure.

2. Triggering conditions for dormancy mode

During grid execution, the system will automatically enter dormancy mode if any of the following situations occur:

• The holdings quantity exceeds limits when you attempt to sell, or available funds are insufficient when you attempt to buy.
• The maximum or minimum holdings quantity you set has been reached.
• The stock price exceeds the highest or lowest price range you set.

3. Lifting conditions for dormancy mode

Grid trading will automatically exit dormancy mode and resume normal triggerable status in the following situations:

• If dormancy was caused by holdings quantity exceeding limits or insufficient funds, dormancy mode will be automatically lifted once the holdings or fund conditions meet the next trigger requirement.
• If dormancy was due to reaching the maximum or minimum holdings quantity, the system will automatically exit dormancy mode when the holdings quantity returns to the range you set.
• If dormancy was due to the stock price exceeding the price range, the system will automatically lift dormancy mode when the stock price returns to the price range you set.

Key takeaways: Dormancy mode is an automatic protection state in grid trading. When issues such as insufficient funds, holdings exceeding limits, or prices exceeding ranges occur, the system pauses order submission but continues monitoring the market. Once the issues are resolved (e.g., funds are replenished, prices return to the range), the grid trading automatically resumes operation.

Disclosures

This article is for reference only and does not constitute any investment advice.