Also, under normal scenarios, from what I understand you always get back your initial investment + whatever profit is made (if any), because the spot and future cancel each other out. It is only the profit that is variable correct? Or if the profit goes into the negative does that eat away at your initial investment?And does the price gap at the beginning that you lock into, determine the potential profit potential of the bot?I am really curious because this looks very interestibg
Grid trading bot will help you accumulate grid profit gradually, but if the market price keep dropping, you might therefore have negative unrealized profit. This scenario will happen when the current price is lower than your bot’s average holding cost.
While negative unrealized profit is greater than the grid profit, your total profit will therefore become negative. In this case, you will suffer some loss of your initial investment when you close the bot. Please judge your total profit of the bot to realize that you will get back the initial investment or not.