Directional Grid Trading with Re-entry, Stop Controls, and Grid Relocation
Summary
This strategy runs a one-sided grid in either buy-then-sell or sell-then-buy mode. In the first mode, it places a sequence of buy orders at fixed price intervals below a starting price. When a buy fills, it places a sell order above that fill by a specified profit gap; after the sale, it restores the corresponding buy order. The reverse mode swaps the order sequence. Order sizes can be equal or customized, and the configuration includes optional profit and loss limits, automatic grid relocation, and limits on when distant orders remain active.
The central risk is a sustained move beyond the grid's range, which can leave positions exposed. The document describes controls and configuration options, but its published BTC/USDT backtest covers only a single day and includes no outcome statistics. It therefore offers no meaningful evidence of profitability. Execution details, available capital, fees, and slippage can also affect how the grid behaves in live markets.
Key ideas
- The grid can begin with buy orders below a reference price or sell orders above it.
- After an order fills, the strategy places the opposite order at a configured price offset and then restores the grid level.
- Order size can be shared across buys and sells or set separately, and grid spacing and quantity are configurable.
- Optional controls include stop loss, stop profit, automatic relocation, and dynamic cancellation of distant orders.
- A sustained price move outside the grid is the main stated risk, and the brief published test provides no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.