STRATEGIES
Grid Trading (Grid Trading Strategy)
Definition
Grid trading is an automated strategy that places multiple buy and sell orders at regular price intervals, profiting from market volatility by buying low and selling high within a defined range.
Example
Example
Setting buy orders every $50 below ETH's current price and sell orders every $50 above, automatically trading the range as price oscillates.
Risks to Consider
Risks
- Trend risk
- Range breakout
- High transaction costs
- Capital efficiency