Adapting a Grid Strategy for Maker-Order Turnover

Summary

The article proposes modifying a range-trading grid to generate trading volume, aimed at market makers or traders seeking lower fees. It describes using maker orders to add positions as price falls, then closing profitable positions after a larger rebound and reopening orders to capture further movement. It recommends starting without an initial holding, using small grid steps, and adjusting exit distances to account for fees or rebates.

For risk control, the author suggests allocating enough funds for a severe decline, varying grid spacing with market conditions, and capping position increases through a three-level sizing scheme. The text offers personal estimates for turnover and returns, but supplies no independent records, backtest methodology, or detailed liquidation analysis. It also acknowledges that positions can remain underwater and incur perpetual-futures funding costs; the claims of safety and profitability therefore depend on assumptions that are not demonstrated.

Key ideas

• The proposal uses a grid of maker orders to generate turnover from repeated price fluctuations.
• It removes the initial position and adds to exposure on declines, then closes profitable positions after a rebound.
• Grid spacing and exit distances should account for trading fees, rebates, and changing volatility.
• A reserve for adverse moves and capped, tiered position sizing are presented as risk controls.
• The turnover and return estimates are author-reported and lack documented testing or independent verification.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.