Long Grid Trading with Bounded Price Levels and Per-Slot Capital

Summary

This long-only grid strategy divides a chosen price range into levels spaced either geometrically or arithmetically. It assigns an equal cash amount to each slot, buys when a bar closes down through an unowned level, and closes that slot after price crosses upward through the next higher level. Grid ownership is tracked separately for each slot, allowing multiple entries as price moves through the range. The script also provides chart displays, status information, and webhook alerts for a connected bot.

The design relies on fixed bounds and a capped allocation rather than trailing stops or stop-loss orders. It is therefore dependent on the selected range and available capital: a sustained move below the lower bound can leave positions open, while reversals and trading costs affect realized outcomes. The source contains defaults for a POL perpetual market and a dated backtest window, but it supplies no reported performance analysis. Its crossing checks use closing prices, and the publication does not establish how the approach performs across other markets, parameter choices, or conditions.

Key ideas

• The strategy places grid levels across fixed upper and lower price bounds.
• It buys a slot on a downward close-through and sells that slot after a recovery through the next level above.
• Geometric spacing keeps proportional gaps more consistent, while arithmetic spacing uses equal absolute gaps.
• Equal cash allocation across slots sets an intended capital budget, but the strategy has no stop loss.
• Performance depends on the chosen range, market path, and trading costs; the document reports no results.

Tags

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