What is range grid trading (is it better to have a large or small grid trading interval)?

What is range grid trading? What is range grid trading? What is range grid trading?

Range grid trading refers to trading using the strategy and method of range grid. Range grid can divide market trends into three directions: one-way decline (buying with bearish view) and two-way increase (selling with bullish view). In a bull market, range grids are used to select price trends based on market trends, hedge risks, and exploit price differences.

This type of network system allows users to easily complete transactions or investment decisions without worrying about changes in positions, risk preferences, or profit losses. Therefore, for investors who want to participate in the digital currency field and have profitability or have already obtained corresponding profits, they need to consider their risk tolerance. Therefore, we use range grid to help everyone learn and operate better, achieve profits, and avoid losses caused by losses.

Is it better to have a large or small grid trading interval?

Editor’s note: This article is from the Fenghuolun community (ID: FHBT18), written by Peipei, authorized by Odaily Star Daily for reprint.

Hello everyone, this is Peipei. Recently, the cryptocurrency market has been relatively quiet, with mainly mainstream currencies such as Bitcoin and Ethereum undergoing a range adjustment process during the oscillation uptrend. In fact, many contract traders do not know how much the price difference is in grid trading or which indicator affects the market trends. However, for some people, this phenomenon is quite scary. For example, when I look at this chart, it looks like an “arbitrage” strategy. But from the perspective of the overall market trend, it is just like that. Therefore, we want to remind everyone that this band operation generally needs to pay attention to two important factors:

1. What are the risk points in grid trading?

2. Do you know why you choose to do grid trading this way? If it is not because you think you can make money, then you need to consider what variety to buy or how much to sell. And if you don’t have such conditions, it means that your grid trading capital is much less than expected, and there will also be a lot of volatility. Therefore, the profitability in grid trading is also high, especially when the price falls (of course, there is also the possibility of breaking below), you should not see much profit, because there is a high probability of loss during this process. For example, some friends may suffer even more losses, but it is not yet clear the reason, it is just because the prices of these coins have risen too fast, and many people think this is a normal situation rather than a pullback before the end of the bull market, as most investors are not clear about when to start buying these altcoins, after all, the current price has exceeded the high on December 19th last year, so there are also claims in the market that it is a bear market, or even Bitcoin has not come out to rally, which raises the question, “Why is it so low?”

Another point of view is that as long as you have digital currency, you can do grid trading anytime and anywhere, just like many coin friends say: “I think the trading cost of the grid is about 30,000 yuan, and you can also bring it back as a reference.”

In short, if you want to invest in Bitcoin long-term, you must manage your mindset well and not easily chase highs or sell lows. As for whether you will be cut off, I think you still need to be cautious. First of all, you must have a stop-loss awareness, and then make reasonable decisions based on your position and risk tolerance. Secondly, you need to always pay attention to various risks and try to minimize losses.

Next, we also need to pay attention to some issues on other platforms, such as whether the recent IE0 projects have similar problems. However, this is a controversial issue. At least domestic exchanges have introduced relevant policies, including one of the two bills submitted by the US Congress since this year will allow grid trading to operate automatically, and this regulation is expected to take effect within the next two weeks, and the government will also provide specific regulatory guidance.