Grid Spacing Types

Grid Spacing Types

Grid spacing defines the distance between consecutive nivel de grids. The two primary approaches — linear and geometric — produce fundamentally different grid structures that suit different condicoes de mercado and asset behaviors.

Linear (Arithmetic) Spacing

Linear spacing places nivel de grids at equal dollar intervals throughout the range.

Formula:

Spacing = (Grid Alta - Grid Baixa) / (Grid Levels - 1)

For a range of $100 to $150 with 11 levels:

Spacing = ($150 - $100) / 10 = $5
Levels: $100, $105, $110, $115, $120, $125, $130, $135, $140, $145, $150

Every level is exactly $5 apart, independentemente de o preco.

Profit characteristics: Each completed round trip earns o mesmo dollar amount ($5 in this case). The percentage return, however, varies by level:

Baixaer levels produce um maior percentage return per trade. Isso cria an implicit bias — o grid is more “profitable” (in percentage terms) at o bottom of the range.

Geometric (Percentage) Spacing

Geometric spacing places nivel de grids at equal percentage intervals. Each level is a fixed percentage above o anterior one.

Formula:

Ratio = (Grid Alta / Grid Baixa) ^ (1 / (Grid Levels - 1))
Level_n = Grid Baixa x Ratio^n

For a range of $100 to $150 with 11 levels:

Ratio = (150/100) ^ (1/10) = 1.0414 (4.14% per step)
Levels: $100.00, $104.14, $108.45, $112.94, $117.61,
        $122.47, $127.54, $132.82, $138.32, $144.05, $150.00

The dollar gap between levels increases as o preco sobe, but the percentage gap remains constant at 4.14%.

Profit characteristics: Each completed round trip earns o mesmo percentage return:

This uniform percentage return means every trade is equally efficient independentemente de nivel de preco.

Which Should You Choose?

Choose linear spacing when:

• The faixa de grid is narrow (menos que 20% of o preco).
• You are trading stablecoins or very low-volatility pairs.
• You want simplicity — linear grids are easier para calcular and understand.
• The dollar profit per trade matters mais que percentage return.

Choose geometric spacing when:

• The faixa de grid is wide (mais que 30% of o preco).
• You are trading volatile assets like altcoins.
• You want consistent percentage returns across all levels.
• You plan to run o grid for an extended period where o preco may shift significantly dentro do range.

Why Geometric Spacing Matters for Wide Ranges

Consider a grid from $50 to $200 with linear $10 spacing:

• At $50: a $10 move is 20% of o preco.
• At $200: a $10 move is only 5% of o preco.

O grid is extremely dense at the top (where price rarely moves enough to trigger trades) and sparse at o bottom (where moves are large and might skip levels). Geometric spacing solves this by making levels proportionally spaced.

Hybrid Approaches

Some advanced grid configurations use hybrid spacing:

• Range-weighted: Denser levels near the preco atual, wider levels at the extremes.
• Dynamic grids: Spacing adjusts based on recent volatility — tighter during calm markets, wider during volatile ones.
• Cluster grids: Extra levels concentrated around key support/resistance zones.

These approaches require more sophisticated configuration but can improve capital efficiency in specific scenarios.

Practical Impact on Profits

For most traders with moderate range sizes (15-30%), a diferenca between linear and geometric spacing is modest. The choice becomes significant when:

• The range exceeds 50% of the preco atual.
• The asset has a history of large percentage moves in ambos directions.
• You are comparing performance over many months of operation.

When in doubt, start with linear spacing for simplicity. Switch to geometric if you find that trades cluster at one end of your range and rarely execute at the other.

Resumo

• Linear spacing uses equal dollar intervals, producing higher percentage returns at lower nivel de precos and consistent dollar returns across all levels.
• Geometric spacing uses equal percentage intervals, ensuring uniform percentage returns at every level and better distribution across wide ranges.
• Choose linear for narrow ranges and simplicity; choose geometric for wide ranges and consistent percentage efficiency.

Proximo Passo

Agora que voce entende grid mechanics, learn when a estrategia performs best in When Grid Trading Works Well.