The ideal distance between each grid depends on the leverage and the natural volatility of the currency. Since you are using the geometric grid and not the arithmetic one, the distribution will be more suitable for natural price movements, but the distance needs to be accurately calibrated.
The basic equation for the ideal distance between grids:
The higher the leverage, the closer the distance between grids should be to maintain profit stability and avoid strong corrections.
The ideal distances for each leverage (as a percentage)
---
Factors affecting the choice of the ideal distance:
✅ The natural volatility of the currency: If the currency moves 3%-5% daily, it is better to use a distance of 0.3%-0.5% with leverage X75 or X125 to ensure high trading density.
✅ Volume and liquidity: Low volume currencies may suffer from price slippage, so it is preferable to leave a larger distance (0.8%-1.2%).
✅ Stop loss: If you set a tight stop loss (like 5%-10%), it is better to use smaller distances (0.3%-0.5%) to reduce risks. However, if the stop loss is large (50%-60%), you can use larger distances such as 1%.
---
Best geometric grid settings for high leverages (75X - 125X):$ETH
📌 If you want to exploit rapid movements:
Leverage X125: Use a distance of 0.2% - 0.3%, and distribute the grid to be denser in high volatility areas.
Leverage X75: Use a distance of 0.3% - 0.5%, providing you with a good balance between quick trades and stability.
📌 If you want a more stable strategy:
Leverage X50: Use a distance of 0.5% - 0.8%, you will still achieve a good trading rate while reducing risks.
Leverage X25: Use a distance of 0.8% - 1.2%, suitable for placing trades over a wider range to reduce random fluctuations.
---
Tips for accurately adjusting the geometric grid:
✅ Use the geometric grid instead of the arithmetic one with high leverage, as the arithmetic may increase risks during price explosions.
✅ Monitor the currency for 24 hours to determine the daily volatility range, and adjust the grid to cover this range with appropriate density.
✅ The higher the leverage, the closer the distance between grids should be to increase the number of trades, but without reducing it to the point of increasing costs (spread + commissions).
✅ When choosing a large stop loss, you can slightly increase the distance between grids to avoid quick closures.
🚀 If you want the best balance, try setting X75 with a distance of 0.4% - 0.5%, which is most suitable for most tradable currencies in the futures grid.