Glossary

Grid depth

How many positions are open on the same symbol and direction at once, counted as a level: the first position is level 1, the next add is level 2, and so on.

Grid depth is the clearest single number for how much a strategy relies on averaging into a losing direction. A history that never goes past level 1 or 2 is trading normally; one that regularly reaches level 8 or 10 is depending on the market turning before it runs out of margin.

Deeper levels also carry larger position sizes in most grid and martingale designs, so the risk taken on at level 8 is usually far larger than the risk taken on at level 1, even though both count as one trade in a simple trade count.