Grid up, in a volatile market, seize the opportunity.
Test principal: 100U First order date: March 5, currently 64 days, Profit amount: 16.4U Annualized return: 16.4U/100U/64 days * 365 days = 93.5%.
Notes: 1. Conduct stress testing! This is the most important aspect of grid trading. After designing the grid (initial grid price, lowest price, grid spacing, amount per grid), assume a continuous drop from the first grid to the last grid, calculate the total amount of passive purchases, and ensure it stays within budget. If it exceeds the budget, reduce the amount per grid.
2. Lock your funds. Once the grid is designed, treat it as a complete trading plan and do not divert the grid funds. Otherwise, during a sharp decline, there will be no funds to execute the buying plan, leading to regret.
3. Do not change the trading plan. Market fluctuations might lead to slight differences in buying or selling, but do not let this affect your emotions or change the trading plan. Grid trading is a strategy that requires minimal intervention; making frequent changes can affect the stability of returns. Although this test uses manual limit buy + take profit sell orders, it is recommended to use a spot grid trading bot in actual operations.
4. Beware of risks. The grid strategy cannot make big money and may incur significant losses. The biggest risks come from aggressive bear markets and black swan events. Consider designing a stop-loss escape price. For example, if the maximum drop designed for the initial grid is 45%, then the overall loss when buying the last grid may be 25-30%. If it continues to drop, and the overall loss reaches 35%, then sell all at market price. Choosing cryptocurrencies with large market capitalization and relatively small volatility helps reduce risks.
While editing this article, another grid was sold, nice~ #策略交易