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What is the grid trading method?

Grid trading is an active trading strategy that takes advantage of market fluctuation. Its essence is to use the repeated movement of the price of the investment target in a period of fluctuation to increase or decrease the position in order to maximize the investment income.

Generally speaking, according to the establishment of grids with different numbers and sizes, we will open positions when we break through the grid and reduce positions when we return to the grid, so as to capture the fluctuation trend of prices and achieve the goal of profitability.

There are also some variations of grid trading on the Internet.

Some have set up stop-loss rules, and some have made trend grids on both sides of the center line, but no matter which one actually can't escape from the same profit and loss source, in order to get more income, it is necessary to release the same amount of risk exposure. It is impossible to have a speculative model with low risk and high return, and the best historical back-test return that comes out through over-optimization is owned.