Stepped Grid Trading with Increasing Position Sizes

Summary

The document outlines a two-sided stepped grid strategy. It sets a grid distance, opens a long after a decline by that distance and a short after a rise by the same distance, then closes a position when price has moved two grid distances upward. Initial position funding starts at one tenth of the amount required for a grid and increases in successive tenths. When account equity reaches a chosen profit target, all positions are closed and the process restarts.

The document cites backtests for EOS/USDT from January through August 2021 and AUD/USD from January through June 2021, using default code parameters. It gives no performance results, risk measures, fees, leverage assumptions, or detailed rules for simultaneous positions and adverse moves. The examples therefore identify markets and test periods but do not establish profitability or robustness. The rising position size can increase exposure as the sequence progresses, so the description alone is insufficient to assess drawdown risk.

Key ideas

• The strategy places long and short entries at fixed price intervals around a grid.
• A position is closed after an upward move of two grid intervals.
• Position funding increases in successive tenths of the amount required for a grid.
• All positions close and the strategy restarts when equity reaches the configured profit target.
• The document names two backtest periods but provides no performance statistics.

Tags

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