How grids work
A grid trading strategy divides a price range into several levels. The idea is to buy after prices fall and sell acquired inventory after prices rise to a higher level.
A simple example
Imagine a range from 90 to 110, divided into four equal-price intervals. Its boundaries are 90, 95, 100, 105 and 110. A buy near one level can be paired with a sell at the next higher level.
This example explains the structure, not an expected return. A price touching a line does not guarantee that an order can fill there.
What the range changes
A narrow range concentrates levels closer together. A wide range covers more prices but spreads the levels farther apart. If prices leave the range, a strategy may wait or hold one-sided inventory. The range is not a stop-loss or a guarantee against losses.
What more intervals change
More intervals create closer price steps and divide the configured budget into smaller portions. Closer trades leave less room for fees and other costs. Fewer intervals create wider steps.
Equal-price spacing uses the same price difference between levels. Equal-percentage spacing uses the same proportional change.
Why a grid can lose money
Persistent price trends, fees, poor liquidity and unfavorable execution can overwhelm gains from smaller price swings. Inventory can fall in value while held. Historical patterns may not repeat.
Canopy currently lets you explore these choices in paper mode. Live protocol execution and its final safeguards are not available in this preview.