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The Economic Times
The Economic Times
Business

Understanding futures grid trading and the risks of automated strategies

Crypto markets do not always develop a clear upward or downward trend. Prices can spend days or weeks moving between support and resistance, repeatedly reversing before either side establishes control. These range-bound conditions can make conventional directional trading difficult, particularly for traders trying to time every entry and exit manually.

Futures grid trading offers a more systematic way to respond to such price movements. Instead of depending on a single prediction, the strategy divides a chosen price range into multiple levels and uses predetermined rules to execute trades as the market crosses them.

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