What is grid trading? What should I pay attention to when using grid trading?

Dec 30,2022
What is grid trading? What should I pay attention to when using grid trading?

World Chain Finance

In currencycircle, playing with human greed and fear;greedyIt is because you want to become rich overnight and realize the shortcut of wealth freedom; Fear is due to the fear that we can't catch the waterfall and have nothing after one night! That's in the coincircleThe application of grid quantitative trading can effectively prevent this situation! So,What exactly is grid trading? What should I pay attention to when using grid trading? Next, let's have a look.

What is grid trading?

Grid trading is a countermeasure toolThat is, a series of buying and selling prices are structured through a certain price range in a volatile marketAutomatically execute high dumping and low suction according toIt is a trading method to ensure that each selling price is higher than the buying price and strictly abide by it, so as to obtain the band profits in the price fluctuation range. Generally speaking, it is reflective to sell high and suck low. (This kind of countermeasure is especially suitable for recommending investors because it does not require anyone to participate in the transaction, which can avoid people being motivated.)

In essence, the grid trading method uses the strategy of attracting at a low price and selling at a high price. That is, first select the base price to buy a certain minimum position, and then set a price adjustment range (the lowest price~The highest price), and divide the fluctuation range intoNEquivalence (price difference): buy one price difference for each price drop, sell one price difference for each price rise, and carry out low absorption and high selling to obtain band price difference.

Grid trading can also be likened to fishing by fishermen in their daily life, such as casting nets, adding positions (when the collateral price drops), reducing holdings (when the collateral price rises), and closing nets (closing positions) in a volatile market, to salvage fish (price difference) that meet the grid size (policy standard) in the ocean (currency market).

The grid trading method is also a quantitative trading method, which does not require manual trading. It is an ideal automatic trading tool for those who cannot follow the order in real time. Programmed automatic trading can inhibit human greed, fear, luck and other shortcomings. It is very effective in the volatile market, and the greater the volatility, the greater the profit (according to data analysis, most currencies in the currency market have80%The trading hours of are all in shock, so grid trading is worth mentioning).

What should I pay attention to when using grid trading?

oneGrid trading willLose moneyLoss

Grid trading is not a sure bet, and it will also lose money. (Investment is inherently risky!)

Suppose that after you set up a grid order, the price of the target continues to fall. As long as the grid order meets a grid line, the grid robot will continue to help us buy the target. It will also lose money in the downtrend.

However, compared with buying the spot market with all the funds, the decline of the trading strategy of the grid bill is relatively small, because it is bought every time when the price falls, and the average price of the purchase is higher than the initial priceallin% of investors are still low.

However, if you want to get the price difference in the downtrend, you can set up a "reverse grid" and a "bearish grid", which will make money when prices fall.

two. Grid transaction is not suitableStable priceSubject of

Because the strategy of grid trading is to constantly buy low and sell high in fluctuating and volatile markets, if the price trend is very stable, it is not recommended to use grid trading countermeasures.

threeService charge of grid transaction

Every time the price touches the grid line, the grid robot will automatically help you trade, and the service charge will be deducted! Therefore, in a volatile market, once you buy and sell, you will deducttwoService charge for each time.

Although the profits brought by the volatile market are good, the handling fee is also a point that must be considered. Therefore, when selecting grid trading, try to choose an exchange with low handling fees.

Having said that, I believe you have a certain understanding of what grid trading is and what you should pay attention to when using grid trading. in general,If you want to make money in any financial system, selling high and absorbing low is the key. These four simple words are difficult for everyone. Because no one can predict when is the top and when is the bottom, the grid trading method is a countermeasure invented to solve this problem.