On the evening of August 1st, AICoin researchers conducted a live graphic and text sharing on the principle of grid trading in the AICoin PC End-Group Chat-Live. Here is a summary of the live content.
I. Principle of Grid Trading
1. Meaning of Grid Trading
Grid trading is an automated strategy that involves buying low and selling high within a specific price range.
2. Essence of Grid Trading: Buy Low, Sell High
3. Grid Trading Model
① Selecting targets: It is recommended to consider coin pairs with a relatively large market value.
② Finding suitable oscillation price ranges for grid division.
③ Buying the selected targets with a certain base position, which can be around 3 layers.
④ Based on the grid drawn in step 2, divide the fluctuation range into N equal parts, buying one part when it drops one grid.
⑤ When it rises one grid, sell the part bought in the last drop.
4. Core of Grid Trading: Organize a grid and conduct buying and selling operations on this grid.
II. Example of Grid Trading Explanation
1. ETH/USDT perpetual, divided into 9 equal parts
![Grid Trading, a trading strategy "born for oscillation"aicoinfigure 1](https://static.aicoinstorge.com/article/20230802/169096561239932.png "Grid Trading, a trading strategy "born for oscillation"aicoinfigure 1")
![Grid Trading, a trading strategy "born for oscillation"aicoinfigure 2](https://static.aicoinstorge.com/article/20230802/169096564645108.png "Grid Trading, a trading strategy "born for oscillation"aicoinfigure 2")
In theory, for each drop of one grid, a buying operation is conducted, and for each rise of one grid, a selling operation of the part bought in the previous grid is conducted. Within the grid, a 100% success rate can be achieved.
![Grid Trading, a trading strategy "born for oscillation"aicoinfigure 3](https://static.aicoinstorge.com/article/20230802/169096567019912.png "Grid Trading, a trading strategy "born for oscillation"aicoinfigure 3")
Review: Each selling grid is compared to the previous buying grid, and the corresponding selling is conducted.
2. Selection of Grid Trading Targets
① Clearly defined oscillation range, the more oscillations, the greater the opportunity for grid profit.
② Good depth, especially for high market value coins.
③ Fast transaction, preferred for large coins.
Note: In the case of a one-sided decline, breaking the lower limit of the set grid can trigger a stop-loss operation, recognizing the loss. Alternatively, a larger grid can be constructed.
III. Market Analysis
1. ETH/USDT perpetual
![Grid Trading, a trading strategy "born for oscillation"aicoinfigure 4](https://static.aicoinstorge.com/article/20230802/169096571496175.png "Grid Trading, a trading strategy "born for oscillation"aicoinfigure 4")
Review: After a divergence appeared on the daily chart of ETH, it has been continuously declining. At the time of the live broadcast, the daily chart had just crossed the MACD zero axis, indicating the possibility of further decline.
2. BTC/USDT perpetual
![Grid Trading, a trading strategy "born for oscillation"aicoinfigure 5](https://static.aicoinstorge.com/article/20230802/169096614019633.png "Grid Trading, a trading strategy "born for oscillation"aicoinfigure 5")
Review: At the daily level, there was no corresponding reversal signal for BTC at the time of the live broadcast, indicating the continued risk of decline.
Recommended Reading
Customized Volume and Price Analysis System: King's Vision, Selecting Investment Opportunities
Super Band Tracking System: The New Darling of the Coin Circle, Easily Seizing Profit Opportunities
For more live content, please follow the AICoin "News/Information-Live Review" section, and feel free to download the AICoin PC End.
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