1. Understanding Basic Grid Trading
Before learning about Moving Grid, it’s important to understand the fundamentals of Grid Trading.
Core Concept
Grid Trading divides a selected price range into multiple equal “grid levels,” forming a structure similar to a fishing net. Each time the market price moves across one grid level, the strategy automatically executes a buy-low or sell-high order.
How Grid Trading Works
-
Set the Price Range:
Select a cryptocurrency and define a price range where you expect it to fluctuate.
Example: BTC trading between $50,000 and $60,000. -
Create the Grid:
Divide this range into N levels.
Example: 10 levels = $1,000 difference between each level. -
Place Orders:
The system places both buy and sell orders at each grid level within the defined range. -
Automated Execution:
-
When price falls, lower-level buy orders are triggered.
-
When price rises, higher-level sell orders are executed to sell previously acquired positions.
-
Each completed cycle of “buy low, sell high” generates profit equal to one grid interval.
-
Pros and Cons of Grid Trading
Pros
-
Ideal for sideways markets.
-
Allows continuous buy-low and sell-high arbitrage.
-
Does not require predicting market direction.
Cons
-
Performs poorly in strong trending (one-way) markets.
-
All positions may sell too early in an uptrend.
-
In a downtrend, positions may be stuck with no new arbitrage opportunities.
-
Stops generating profit once the market moves outside the preset range.
2. What Is Moving Grid?
Moving Grid is an upgraded version of traditional Grid Trading designed to solve its major weakness—poor performance during strong uptrends or downtrends.
Core Concept
Unlike a static grid, Moving Grid adjusts dynamically to follow market trends.
You can think of it as a smart fishing net that automatically moves with the flow of the fish (price movement).
-
If the price rises, the grid shifts upward.
-
If the price falls, the grid shifts downward.
How Moving Grid Adjusts
The system shifts the entire grid upward or downward when the market price breaks and stays beyond the grid’s boundaries.
Upward Adjustment
-
If the price breaks above the upper boundary and remains there,
the system recognizes an uptrend and shifts the entire grid upward by one or more grid intervals.
Downward Adjustment
-
If the price falls below the lower boundary and stays there,
the grid is shifted downward to follow the trend.
All pending buy and sell orders within the original grid will move along with the adjustment.
For more details, please check the video below:
3. Advantages of Moving Grid
-
Trend Adaptability
It solves the biggest weakness of traditional grids—poor performance in one-way markets (rapid surge or deep decline). -
Improved Risk Control
During downtrends, the downward shift helps reduce average entry cost and mitigate losses. -
Capture More Profit
During uptrends, upward adjustments help preserve positions and capture more potential gains.
Summary
Moving Grid is a smart, dynamic upgrade of traditional Grid Trading.
It maintains the advantages of regular grid strategies—profiting from market fluctuations—while significantly improving adaptability to market trends. Thanks to its ability to move with the market, Moving Grid is increasingly popular in the highly volatile cryptocurrency Futures market.
