The inspiration for the technique above comes from the theory of risk-reward ratio 1:2.
All this time, if you study technical analysis, you often hear that the reward should be 2x greater than the risk, a risk-reward ratio of 1:2.
But in my opinion, that theory is somewhat of a fantasy because even though we have determined cut loss limits based on technical analysis and various indicators as well as macroeconomics, blah blah blah, who can guarantee that if the cut loss is at -5%, the cryptocurrency bought will rise to +10%? It can't be certain, right?
That's why I am thinking about how to reduce or eliminate risk?
The answer is that we still trade using technical analysis and set targets and cut loss limits, but we use accumulated grid profit to reduce risk. Even if the grid profit has accumulated enough, the risk can become zero, so if there is a cut loss, we don't incur a loss because the grid profit is used for the cut loss.
