Intraday Grid Trading to Reduce the Cost Basis of A-Share Positions
Summary
This brief explanation describes “doing T” in Chinese equities: using intraday buys and sells to adjust the cost basis of an existing position, despite the market’s T+1 settlement rule. It says the trader needs to keep cash available rather than invest the entire account in shares, so the position can be managed through successive trades.
Two approaches are outlined. A half-position rotation buys an amount at a lower price and sells it at a higher price, or sells first and buys back later at a lower price. An intraday grid is named as a commonly used alternative, but its parameters and execution rules are not explained. The page points readers to a video and strategy source, without presenting their contents here. It provides no performance evidence, transaction-cost analysis, or risk controls. The method therefore serves as a high-level description rather than a tested strategy; trading costs, price movement, and the constraints of T+1 can affect whether a rotation actually lowers the position’s cost.
Key ideas
- A-share T+1 rules limit same-day resale of newly purchased shares.
- Keeping cash available allows a trader to make intraday adjustments to an existing position.
- A half-position rotation attempts to buy lower and sell higher, or sell before buying back lower.
- An intraday grid is mentioned, but the document gives no grid settings or performance evidence.
- Trading costs and execution can determine whether an intraday rotation reduces cost basis.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.