TradingIntermediate#Automation#Strategy
Grid Trading
G
Definition
An automated trading strategy that places buy and sell orders at fixed price intervals (grid levels), profiting from market volatility without predicting direction.
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Concept Diagram
Key Takeaways
1
Grid trading profits from volatility, not direction — it buys low and sells high automatically within a range.
2
Arithmetic grids use fixed price intervals; geometric grids use fixed percentage intervals.
3
Returns of 15-60% APY are typical in sideways markets, but trending markets cause losses.
4
Maximum risk occurs when price breaks below the grid range, leaving you holding at above-market prices.
Practical Example
You set a BTC grid from $95,000 to $105,000 with $1,000 intervals (10 levels). You allocate $10,000. Over the next month, BTC oscillates between $97,000 and $103,000, triggering 45 grid fills. Each fill nets ~$50 profit. Total: $2,250 in 30 days (27% monthly return).
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