As a veteran grid trader, I wanted to offer some advise based on past experience. Unfortunately, our dorky friend didn’t like my post. I guess it doesn’t fit with his get rich quick on DCA bots video.
So here it is….
Standard grid bots vs DCA bots. If you use futures grid bots, check they are not grid + DCA combo bots as they are just as bad as DCA bots.
DCA bots will either blow up your account or hit a stop causing you losses. I come from the Forex world where people have tried all these strategies before. Not a single person was able to consistently win with DCA bots.
Back then, DCA bots were called “Grid martingale strategies”. Search for “Blessing EA” and you will see over a decade of historical posts.
Standard grid bots work differently, closing deals at every price level. This is a safe strategy that will produce profits if setup correctly.
In a massive down trend, the standard grid bot is still able to close some trades on the pull backs and reduce floating drawdown. The DCA bot progressively opens more and more safety orders as the price moves down without closing any trades, hence the term ‘holding a bag’. The closing price of the DCA bot deal will decrease, but at the expense of placing you in massive drawdown. As others in the past have found, it’s only a matter of time before SL or account blow up.
DCA bots bots are significantly higher risk. Standard grid bots risk is easily controlled and visualised at the start.
If you don’t have enough funds to make a standard grid bot with a large grid worth while, setup an infinity grid but only let your active orders cover the last key support and resistance levels.
Anybody using wide grids would have survived all the bull and bear markets plus crypto winters and would be in positive territory by now.