Grid trading strategy is a kind of trading method that does not need to predict the rise and fall trend of the market , Execute the transaction according to the price trend in the grid . It's usually buying when it's down , Sell when it goes up . Contrary to common price trend trading .
Applicable conditions of grid transaction ：
- The market is in a volatile situation
Grid trading is mainly suitable for shaking the market , Because unilateral rising market is easy to short , Unilateral decline of the market is easy to cause losses .
- Trading varieties fluctuate greatly
The profit of grid Trading depends on the variety fluctuation , The more volatility , The more likely it is to touch the buying and selling lines , The more times you buy and sell , The more you cash in .
- Lower transaction costs
Because grid transactions are frequent , Therefore, it is necessary to choose varieties with lower transaction costs , Otherwise, all the income will subsidize the service charge .
If retail investors do grid Trading , There are a few issues that need to be considered ：
- To ensure safety
- It needs to be easy to operate
- There is no extra charge for software use
Grid trading should be operated frequently in volatile market , Earn the difference over and over again , Buy low sell high , In order to get the benefits .
Grid trading is in a bear market , Divide the investment funds into n Equal parts , Buy low and sell high .