HUMANCODEX / GUIDE
Crypto grid trading: order levels and re-entry
Understand grid trading, limit order spacing, capital allocation, re-entry after take profit and rebuilding a grid near the market price.
How a grid of orders works
Grid trading divides an entry plan into multiple price levels. For example, an educational LONG grid at 100, 98 and 96 buys as the price reaches the orders. Each filled entry has its own purchase price and exit rules. These numbers illustrate the mechanism; they are not recommended settings for a live cryptocurrency pair.
Grid spacing and buying again
The distance between levels is called grid spacing. More frequent entries change the number of orders and capital allocation, but do not by themselves produce more net profit. After an exit is confirmed, the strategy may restore a buy order. Re-entry and rebuilding the entire grid closer to the market price are different events: moving planned levels does not mean existing positions have been closed.
A falling market without a recovery
A grid can accumulate open positions and unrealized losses. Profitable individual exits do not prove that the whole account is profitable. Available capital, margin, open-position results and realized results after costs need to be considered separately. A leveraged futures grid also carries liquidation risk.