Spot grid strategy (L-form) idea

1. Satisfy wide range fluctuations (it is recommended that the high and low points are within 30~35%)

Suggestions: 1) Do high volatility (volatility in the previous month >30%)

2) Do spot (spot breaking is the last line of defense)

3) Open after the plunge

2. Coin selection: L-form coin selection, Figure 1 is the basis of the L-form idea, refer to the figure below

3. Through coin selection, select EOS and other currencies, take EOS as an example, configure high and low points, grid quantity, order amount, etc.

Personal conclusion of grid strategy:

Advantages:

1. High winning rate, in line with public preferences

2. High trading frequency, in line with public preferences

3. Can generate rich transaction fees and liquidity (for brokers and platforms, not retail investors)

4. In the market that meets the requirements of the strategy, the income is relatively stable.

Disadvantages:

1. The market requirements are high, it is impossible to do it without any market, and there are relatively few market conditions that meet the L-form.

2. The contract risk is relatively large. If the high and low points and amplitude selected exceed this range, the risk faced is extremely large. Even if the leverage required by the contract is low, the account may be liquidated.

3. The profit-loss ratio is low. Personal tests show that it is basically around 1:1, so a high winning rate is required. Stop loss is almost impossible. Stop loss will give back most of the profits.

Correction: the backtest time before the 4th picture is wrong. The real time is 1 month, the profit is only 3.6%, and the maximum retracement reaches 4.5%. The profit is small and the risk is high. I don’t plan to delve into the grid for the time being, but mainly play the trend!