Simulating "grid" hedging strategy with bitcoin

The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let’s take some to look at this more closely.

Let’s say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.

The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let’s assume that the price moves back to level 100.

The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.

Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.

The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some tea.

some of you in the US and Canada will say “But I can not buy and sell at the same Time Big Brother wont allow me”
well srew big brother and freedom to the trader
the solution is open 2 accounts one in your name and one in your wife , kid or business partner name


please do no do this at home
buy and sell same size at same time

let say we buy 50000$ in account A
and sell short 50000 $ in account B
keep watching …

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Why are you posting the exact same thing again?

Run with it and post some results if you want to convince people

THIS is not the same exact thing
I have never tried this in crypto beside what is it with you ?
maybe you do not want retail traders to know about this?
is Putin a close relative to you? did you grow up in a free democratic country or in some banana land?
just ignore my educational posting dude == i hate dictators like you

1 Like

So will you post this strategy for every commodity out there and claim it’s different because it’s on a different chart?

I’m happy to learn things, but reading the same thing repeatedly from somebody with no track record isn’t educating anybody.

yes but you would not understand
people who favor censorship are ignorant by nature