> For the complete documentation index, see [llms.txt](https://arbital-1.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arbital-1.gitbook.io/docs/automated-strategies/strategies.md).

# Strategies

Arbital offers two automated bot types: **Market Making (MM)** and **Grid**. Available exchanges and assets depend on the bot type you choose.

## Market Making (MM)

Arbital's market making bots run a TWAP-based passive strategy.

TWAP (Time-Weighted Average Price) means orders are placed gradually over time, rather than all at once.

But unlike traditional TWAP (used for execution), Arbital's TWAP is designed for market making, not directional trading.

## What the MM Bot Does

At all times, the bot:

* Places limit buy orders slightly below market price
* Places limit sell orders slightly above market price
* Refreshes these orders every few seconds

So it:

* Buys low
* Sells high
* Repeats this many times

This creates:

* Trading volume
* Spread capture

## Grid Trading

Grid trading places orders at multiple price levels within a configured range. It aims to capture price movements between those levels.

Choose **Neutral**, **Long**, or **Short** to set the grid's direction. Then select an **Aggressive**, **Normal**, or **Passive** preset, or choose **Custom** to configure the grid yourself.

Depending on your selected direction and mode, settings include:

* **Order size** — the amount allocated to each grid order.
* **Price range** — the lower and upper prices used to build the grid.
* **Grid count or levels** — how the orders are distributed across the range.
* **Stop conditions** — profit targets, maximum loss, or upper and lower stop-loss prices.

The form displays the **required capital** for your configuration. Your selected exchange account must have enough funds to meet that requirement.

### How to create a Grid bot

1. Click **Create Bot** and select **Grid**.
2. Choose an exchange, connect or select a funded exchange account, and choose your trading asset.
3. Select **Neutral**, **Long**, or **Short**, then choose a preset or **Custom** mode.
4. Set your order size, review the required capital, and configure any additional fields shown for your mode.
5. Create the bot and check that its status changes to **Running**.

On the bot's details page, monitor its PnL, trading volume, open orders, and order ladder. Grid trading does not guarantee a profit; open positions can lose value as the market moves.