Building an Equal-Spacing Spot Grid Strategy with Price Crossings
Summary
This tutorial outlines the design of a simple cryptocurrency spot grid strategy. It defines an equal-difference grid around an initial price, with grid levels extending both above and below that starting point. Each level stores its price and whether a buy or sell action has been marked. The example constructs a finite set of levels for illustration, while the stated design goal is an extendable grid; levels at or below zero are excluded.
Trading signals come from comparing prices at two moments: a downward crossing of a level can trigger a buy, while an upward crossing can trigger a sell. The article cautions that crossing alone is insufficient, since repeated oscillation around a level could cause unnecessary trades and fees. It introduces buy and sell flags as a way to track activity, but defers the full order rules to a later installment. It provides no backtest or performance evidence.
Key ideas
- An equal-difference grid places price levels at fixed intervals around a starting price.
- Each grid level can track its price and whether buying or selling has been marked.
- A downward price crossing is treated as a potential buy signal, while an upward crossing is a potential sell signal.
- The strategy compares prices across moments to identify crossings.
- Additional state checks are needed to avoid repeatedly trading the same level and accumulating fees.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.