The Grid-Walk Problem
A trending market is a grid's adversary. If price climbs steadily out of the upper boundary, the bot accumulates bought inventory with no corresponding sell fills — the round-trip engine stops turning.
$180 $140 $100 Price exits upper bound — grid-walk begins Grid Range buy orders filled… …sell levels never reached inside grid Uncovered Inventory Bought low, can't sell within grid THE GRID-WALK PROBLEM When price trends strongly upward, it exits the grid's upper boundary. Buy orders filled at lower levels accumulate as unhedged inventory. The sell orders set within the grid never trigger. The strategy stalls.
Educational illustration of grid trading risk. Not financial advice. All trading strategies involve risk. Understanding conditions where a strategy underperforms is essential before deploying capital.
Yodacom