The inspiration for the technique above is derived from the 1:2 risk reward ratio theory.
All this time, if you've studied technical analysis, you've often heard that the reward must be 2x greater than the risk, a risk reward ratio of 1:2.
But in my opinion, that theory feels like a fantasy because even though we've determined the cut loss limit according to technical analysis and various indicators as well as macroeconomics, blah blah blah, who can guarantee that if the cut loss is at -5%, then the purchased crypto will rise to +10%? It's not certain, right?
That's why I think about how to reduce or eliminate risk?
The answer is that we still trade using technical analysis and set targets as well as cut loss limits, but the accumulated grid profit is used to reduce risk; in fact, if enough grid profit has been accumulated, the risk can become zero. So, even if there's a cut loss, there's no loss because the grid profit is used for the cut loss.
