Long Grid Trading with Drawdown-Based Adds and Fixed Profit Exits

Summary

This long-only grid strategy opens an initial position after a specified start date, adds buys when price falls a set percentage below the initial entry, and closes all positions when price rises a set percentage above that entry. Its stated defaults use 5% for both the rebuy decline and profit target. The description frames it as a way to capture rebounds in range-bound markets, while tracking entries and cumulative profit on the chart.

The supplied backtest configuration identifies BTC/USDT futures on Binance, using daily bars from late 2019 to early 2025. No performance results are reported, so the configuration alone does not establish profitability. The code and description also leave important behavior uncertain: rebuying can trigger repeatedly while price stays below the threshold, and the fixed target is measured from the initial entry rather than the average position cost. Sustained declines can therefore increase exposure and losses; capital limits, fees, slippage, and execution assumptions require scrutiny.

Key ideas

• The strategy adds long positions when price falls below a threshold measured from the initial entry.
• It closes all positions when price reaches a fixed gain relative to that initial price.
• Repeated buys during a prolonged decline can build exposure and deepen losses.
• The published backtest settings specify daily BTC/USDT futures data but provide no performance results.

Tags

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