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Strategies

Grid Trading

Grid Trading Strategy

Strategy placing staggered buy and sell orders across a range

Definition

Grid trading places staggered buy and sell orders across a chosen price range. Filled orders are typically replaced at an adjacent level to monetize back-and-forth moves; a persistent trend accumulates inventory or sells away upside instead of guaranteeing profit.

Example

Buy 0.1 ETH at $1,950 and sell it at the next grid level, $2,000: the completed cycle earns $5 gross. With hypothetical 0.1% fees on both legs, $0.395 is paid and $4.605 remains before gas.

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How it works

The strategy divides a range into price levels and allocates cash and tokens to orders. A fill usually triggers an opposite order one step away; profit on completed cycles must be measured alongside unsold inventory losses.

Risks to Consider

  • A downtrend accumulates a falling asset
  • A breakout can leave the grid out of inventory or fully exposed
  • Fees and gas can exceed small grid spreads

Common Questions

Is grid trading the same as DCA?

No. DCA buys a fixed amount on a schedule. A grid responds to price levels and uses both buys and sells; it depends on the market revisiting those levels.