[Long Money Column] Long-term Money Research Column Issue 3 - Let's talk about grid trading
Author:yh
Review: kk
Here we are, my family. This is the third issue of the Changqian column, talking about grid quantitative trading that group members are interested in.
Grid Trading
Grid trading is a specific means of quantitative trading. The most important thing about quantitative trading is that it frees your hands and allows you to buy and sell in strict accordance with the program settings. After the settings are completed, unless you actively modify the parameters, no manual operation is generally required.
There are generally many grid presets. According to the type of trading pair, it can be divided into coin-usdt grid (coin-U grid for short) or coin-coin grid (coin-coin grid for short). What I currently hold is an ETH-BTC coin-coin grid. Why do I hold a coin-coin grid and not a coin-U grid? Because I think the current coin price is a bit high and I don't want to buy it. Then why do I hold a coin-coin grid? Because I think there is still an exchange rate difference between ETH and BTC, and I can make money, that's all.
Some people may think that the grid is just making money from fluctuations? Not entirely. Unless the grid is held for more than two years, or the coin you choose fluctuates greatly, the goal of "the grid makes money from fluctuations" can be achieved. So to open a grid, we also need to meet two conditions:
The price of the currency you want to invest in is low, or the exchange rate difference of the currency grid is large (take ETH-BTC as an example. When I opened this grid, the Ethereum ETF had not passed but was expected to pass, and the Bitcoin ETF had passed, so ETH had a higher increase expectation than Bitcoin). At the same time, the growth of currency prices will also drive the appreciation of assets.
In the case of long-term holding, you can get additional grid income, and the greater the volatility, the higher the grid income. However, within the long-term holding period, no coin will have the risk of returning to zero. Therefore, I recommend that you choose coins that are popular in the near future, but the holding time should not be too long, so that you can gain a lot of grid income. Or choose popular coins with a high market value, because even if they are held for a long time, they will not return to zero, and then you can earn long-term grid volatility income.
So, in simple terms, the grid is the money earned from the increase in the coin price + the money earned from the price friction fluctuation. It should be noted that if you hold the grid for a short period of time, the money earned from the straight rise in the coin price will be more than the grid. This also means that the idea of opening a grid is to hold it for a long time. When the grid profit is greater than 100%, I have obtained a zero-risk, permanently free mining machine that continues to mine for me.
If I open a new grid in the future, I will synchronize it with everyone in the group.
Real-time display
The situation of the grid is as shown in the picture above. I have achieved a grid profit of 100%, and will start mining at no cost later.
Report to all shareholders on the status of BTC fixed investment.
This week, I continued to invest in the fixed investment range, and it was not in the bottom-fishing range, so I invested 70u. I started buying at 70,000, and now the average cost has dropped to 61,748. The current BTC is 60,039. I haven't recovered my investment yet, but the rate of return has increased.
The BTC invested this week will continue to join the dual-currency investment of structured financial management, and will receive 0.00055717 BTC by August 30, 2024. Since we briefly talked about the grid this week, let's talk about dual-currency investment next week.
