Grid trading

A grid adds a new position every time price moves a fixed distance against the last one, without closing the ones already open. Each add is a bet that price will eventually turn, and the deeper the grid runs, the more it needs that turn to happen before margin runs out.

A grid can look smooth on an equity curve for a long time, because most ranges do turn before the account is tested. The risk sits in the ranges that do not: one that keeps going shows every open level at once.