Trading Methods ———— Grid Trading Method (Cryptocurrency Version)
#网格交易 —— The "ATM" in Volatile Markets
1. Core Logic
What is grid trading?
Imagine the price of cryptocurrency as a monkey jumping up and down, and you have laid an invisible net within its active range. Each time the monkey hits the net, you calmly buy low and sell high, making some small profits. No predicting rises or falls, just harvesting fluctuations — this is the violent beauty of grid trading.
Why is it suitable for the crypto space?
The cryptocurrency market is inherently high in volatility, especially altcoins, which can swing up or down 20% in a day as easily as drinking water. Grid trading is most suitable for range-bound and consolidating markets, focusing solely on mechanically executing buys and sells, selling high and buying low.
2. Key Design (Humanized Improved Version)
① The Mysticism of Drawing Grids
Central Line: Don't get tangled up, directly choose the "comfort zone" of recent cryptocurrency prices (for example, the central axis when BTC is consolidating).
Grid Density: Too dense can drive you crazy with false breakouts, too sparse means missing out. Personal suggestion: Use 5-10% per grid for mainstream coins, starting at 5% for altcoins.
Asymmetrical Grid: Leave more space for the target, after all, drastic rises and falls are the norm in the crypto space.
② Positioning Black Technology
Do not go ALL IN! It is advisable to keep a single grid position ≤ 10% of total capital, leaving enough bullets to respond to extreme situations.
When encountering a significant drop, you can manually increase your position in the "golden pit" area below the grid (for example, doubling your buy after a 30% drop).
3. Special Suggestions for the Crypto Space
Target Selection: Prioritize assets that have volatility but are unlikely to go to zero (start with BTC/ETH and add a few high-volatility altcoins).
Contract Warning: Full position + high leverage = suicide, extremely high risk of liquidation.
Spike Response: Set a 2% buffer zone (for example, only confirm a trigger after breaking the grid line and then confirming an additional 2%), to avoid being harvested by market makers.
4. Psychological Massaging
Buddhist Mindset: Grid trading earns hard money, don’t envy others’ mythical hundredfold returns.
Trend Arrival: When BTC continuously breaks the grid without looking back, manually take profits/cut losses. Remember: grids are lovers in a range-bound market, enemies in a unidirectional market.
Final Advice: In the crypto space, living long is more important than making quick profits. Grid trading may not make you rich overnight, but it can keep you alive to witness the next bull market.
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