Grid Trading Profitability Across Exchanges
Why Exchange Choice Matters More Than Crypto Selection
Executive Summary
We analyzed 480 grid trading backtests across 20 cryptocurrencies and 4 US exchanges to determine what factors most impact profitability. The surprising finding: exchange choice impacts success rate by 40% - more than crypto selection.
Key Finding #1: Exchange Success Rates
The same cryptocurrency can be profitable on one exchange and lose money on another. This chart shows what percentage of the 20 tested cryptos were profitable on each exchange.
Recommendation: If available, use Binance.US for grid trading. The 0.10% maker/taker fees make a significant difference over hundreds of trades.
Key Finding #2: The Fee Breakdown
Exchange fees compound quickly in grid trading because you make many small trades. A 1% difference in fees can turn a profitable strategy into a losing one.
| Exchange | Maker Fee | Taker Fee | Est. Slippage | Total Round-Trip |
|---|---|---|---|---|
| Binance.US | 0.10% | 0.10% | 0.05% | 0.25% |
| Kraken | 0.16% | 0.26% | 0.08% | 0.50% |
| Gemini | 0.20% | 0.40% | 0.10% | 0.70% |
| Coinbase | 0.40% | 0.60% | 0.10% | 1.10% |
Key Finding #3: Universal Winners
These cryptocurrencies performed well across ALL exchanges tested. Returns shown are from Binance.US with 2.59% grid spacing.
Top 3 Performers
- LTC: +40.6% return, best grid trading volatility
- FIL: +18.9% return, consistent mean reversion
- XLM: +18.4% return, excellent liquidity
Worst 3 Performers
- ALGO: -3.5% return, persistent downtrend
- VET: -3.0% return, low volatility
- NEAR: -2.7% return, poor mean reversion
Key Finding #4: The 1% Spacing Disaster
Common advice suggests using 1% grid spacing for "low volatility" assets. Our data shows this is catastrophic on ALL exchanges.
Why 1% Fails on Coinbase:
- • Round-trip cost: 1.10%
- • Grid profit per trade: 1.00%
- • Net per trade: -0.10%
Every trade loses money before it starts. The more the bot trades, the more you lose.
Minimum Profitable Spacing Formula
Minimum Spacing = Maker + Taker + Slippage + Profit Target| Exchange | Maker | Taker | Slippage | Target | Minimum |
|---|---|---|---|---|---|
| Binance.US | 0.10% | 0.10% | 0.05% | 1.50% | 1.75% |
| Kraken | 0.16% | 0.26% | 0.08% | 1.50% | 2.00% |
| Gemini | 0.20% | 0.40% | 0.10% | 1.50% | 2.20% |
| Coinbase | 0.40% | 0.60% | 0.10% | 1.50% | 2.60% |
Practical Recommendations
Choose Binance.US when available
85% success rate, lowest fees, widest profitable spacing range
Never use spacing below 2% on any exchange
Even Binance.US needs 1.75% minimum to be profitable
Stick to A and B rated cryptos
100% win rate for B+ rated cryptos, 8% for D rated
Avoid ALGO, VET, and NEAR
Unprofitable on ALL exchanges regardless of settings
Methodology
- Test Period: Year 1/Year 2 blind forward test (Feb 2024 - Feb 2026)
- Data: 4-hour candles, 720 days per cryptocurrency
- Cryptos: 20 major cryptocurrencies (BTC, ETH, SOL, ADA, etc.)
- Exchanges: Binance.US, Kraken, Gemini, Coinbase
- Grid Spacings: 1%, 1.75%, 2%, 2.59%, 3.5%, 5%
- Initial Capital: $10,000 per simulation
- Total Backtests: 20 cryptos × 4 exchanges × 6 spacings = 480
Explore Our Rating System
See which cryptocurrencies are currently rated A and B for grid trading.