Logarithmic Grid Strategy
Goal
Capture profits in highly volatile markets by adapting to larger price swings with an uneven, exponentially spaced grid.
How It Works
The Logarithmic Grid Strategy divides a price range unevenly:
More buy orders are packed closer together near lower prices.
Sell orders are spaced farther apart at higher prices.
This structure adapts better to markets that experience sharp moves up or down, compared to a normal evenly spaced grid.
As the market fluctuates:
Buys are triggered more frequently during dips.
Sells are triggered strategically during rallies — locking in profits over larger moves.
Your USDT is automatically allocated across the different grid levels based on this distribution.
Key Mechanism
Exponential Spacing: Grid levels are determined using a logarithmic (multiplicative) progression instead of linear steps.
More Aggressive Downside Capture: Because the lower part of the grid is denser, the strategy accumulates more assets when prices fall, positioning for bigger upside rebounds.
Profit Source: Profits are earned from buying deeply into dips and selling gradually during recoveries, rather than relying on small constant fluctuations.
Risks to Know
Trend Risk: In a strong one-way market (especially downward), you may accumulate too much exposure without corresponding sell opportunities.
Exposure Concentration: Because more buying happens as price falls, a sudden, prolonged crash can leave you heavily positioned in a losing asset.
Trading Fees Still Apply: Each transaction incurs fees — these reduce net profit especially if market rebounds are weak.
Requires Careful Range Selection: If your grid is set too wide or too narrow relative to real volatility, performance suffers.
Best Use Scenarios
Logarithmic Grid Strategy is ideal when you expect higher volatility and potential rebounds, but not a sustained long-term crash. It is not recommended during extreme, one-directional trends without recovery.
Last updated