Advantages and disadvantages of grid trading and strategies for optimizing

Author: iyth888, Created: 2021-07-16 19:38:43, Updated: 2021-07-17 10:25:43

The advantages of grid trading

Grid trading is essentially a mechanical system of low-bought-over-bought trading. It is a method of trading that harvests profit by repeatedly buying low and selling high on price fluctuations.

The network trading method does not rely on artificial thinking, does not require market research, does not require market sentiment, it is a complete procedural behavior, like a fishing net, using market fluctuations to buy and sell low within the network range, to make a profit by repeatedly cycling the difference.

Therefore, the grid trading method is the most suitable stable and profitable way for ordinary people to participate, because the method requires a low level of human skill experience and is very versatile, especially for friends who cannot make money in the stock market.

Many of my friends make timely trades, buy at the ceiling, sell at the floor, and repeatedly beat the market. Net trading can allow investors to passively do high and low, overcome human weaknesses, and reduce investors' misjudgments of the direction of stock movements.

In general, the grid trading method, if used correctly, is stable and does not require laborious research, which is suitable for ordinary people to turn a profit.

The network trading system looks so good, is it not flawed?

There are also disadvantages to the grid trading law.

For example, the capital utilization rate is low, the annual profit is limited, and many people do not see this benefit.

For example, the fear of one-sided market, the market crash is not as much as the direct stock, too much rubber is also easy to sell; the market crash is too deep, there will be a possibility of being caught or broken the net.

For example, high transaction frequency and handling fees are also a problem.

In general, there are disadvantages, but any method has its advantages and disadvantages, if you can steadily make a profit with other methods, then the mechanised strategy of the grid may not look good to you, if you have tried all the methods and failed to steadily make a profit, then the mechanised trading system of the grid, is it not for you?

According to a friend, the net trading system gave him the courage to open the account. He knows how he will win and lose, all the rules are clear, and he is not scared anymore.

Net trading methods are also valuable, and it is easier to achieve stable profits if you have the ability to improve on these shortcomings.

Improvements to the networking law

The net likes to shake, which can make a lot of profit, but is afraid of breaking the net unilaterally.

So the choice of investment varieties is very important, you see you don't know, the market has some trading varieties that are always volatile, finding these varieties, solves the disadvantage of fear of unilateral network breaking, once the grid trading never breaks the network, it is equivalent to you have an automated profit harvesting machine that is always volatile and wins.

The use of network funds is not high, and the profit rate is capped.

This problem can be improved by methods such as trading rules, position management. For example, it is impossible to set a set of parameters, to have a thousand-person network, to set different ranges, grids, and position sizes for different varieties, and to increase the frequency of trading to improve the utilization of funds and the annualized return.

The network also faces a problem of the transaction fee ratio, because the network transaction is relatively trend trading, the frequency of transactions is relatively high, and even there is a dedicated high-frequency network, so it is very sensitive to the transaction fee. This part of the improvement is relatively simple, as far as possible to find the cheapest brokerage brokerage, choose the lowest possible fees, etc. can be solved.

In this article, we'll discuss the advantages and disadvantages of network trading, and the improvements that can be made.

Some of the ideas from the network trading law:https://www.fmz.cn/bbs-topic/7567The rules of trading are detailed in the scientific principles of stable profitabilityhttps://www.fmz.cn/bbs-topic/7568Advantages and disadvantages of grid trading and strategies for optimizinghttps://www.fmz.cn/bbs-topic/7569Optimizing your trading strategy - how to choose the right investment varietieshttps://www.fmz.cn/bbs-topic/7570Optimized grid trading strategies - solving the problem of one-sided decline, reducing the network breakdown ratehttps://www.fmz.cn/bbs-topic/7571Optimization of grid trading strategies - how to use position management to quickly unlockhttps://www.fmz.cn/bbs-topic/7572Net trading is ultimately optimized - net trading yields five times higherhttps://www.fmz.cn/bbs-topic/7524The idea of a grid strategy for high-frequency brushing


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