The Ladder Gain Approach for trading BTCUSD

Imagine a robust and systematic trading strategy designed to maximize opportunities in fluctuating markets. Here’s how it works:

We place 7 BuyLimit and 7 SellStop orders, each spaced $100 apart. As the price decreases, the strategy activates pairs of BuyLimit and SellStop trades with incrementally adjusted lot sizes. This carefully designed approach minimizes risk while positioning us to profit from market movements.

To simplify the strategy, we demonstrate only the case of price drops. The approach for price increases is identical, ensuring balanced and predictable results in any market direction.

At the 8th price drop, the strategy automatically closes all trades and takes profit (TP), locking in accumulated gains.

Calculation of Profits for 7 Price Drops (Each $100) and Take Profit at the 8th:
1. **First Price Drop ($100):**
- Triggered Trades:
- BuyLimit1: 0.01 lots
- SellStop1: 0.07 lots
- Profit Calculation:
No profit or loss yet as trades are just activated.
Net Profit = $0

2. **Second Price Drop ($100):**
- Triggered Trades:
- BuyLimit2: 0.02 lots
- SellStop2: 0.06 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -100 = -1
- SellTrade1: 0.07 × +100 = +7
- BuyTrade2 and SellTrade2: $0 (newly activated)
- Net Profit:
-1 + 7 = +6
Net Profit = $6

3. **Third Price Drop ($100):**
- Triggered Trades:
- BuyLimit3: 0.03 lots
- SellStop3: 0.05 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -200 = -2
- SellTrade1: 0.07 × +200 = +14
- BuyTrade2: 0.02 × -100 = -2
- SellTrade2: 0.06 × +100 = +6
- BuyTrade3 and SellTrade3: $0 (newly activated)
- Net Profit:
-2 + 14 - 2 + 6 = +16
Net Profit = $16

4. **Fourth Price Drop ($100):**
- Triggered Trades:
- BuyLimit4: 0.04 lots
- SellStop4: 0.04 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -300 = -3
- SellTrade1: 0.07 × +300 = +21
- BuyTrade2: 0.02 × -200 = -4
- SellTrade2: 0.06 × +200 = +12
- BuyTrade3: 0.03 × -100 = -3
- SellTrade3: 0.05 × +100 = +5
- BuyTrade4 and SellTrade4: $0 (newly activated)
- Net Profit:
-3 + 21 - 4 + 12 - 3 + 5 = +28
Net Profit = $28

5. **Fifth Price Drop ($100):**
- Triggered Trades:
- BuyLimit5: 0.05 lots
- SellStop5: 0.03 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -400 = -4
- SellTrade1: 0.07 × +400 = +28
- BuyTrade2: 0.02 × -300 = -6
- SellTrade2: 0.06 × +300 = +18
- BuyTrade3: 0.03 × -200 = -6
- SellTrade3: 0.05 × +200 = +10
- BuyTrade4: 0.04 × -100 = -4
- SellTrade4: 0.04 × +100 = +4
- BuyTrade5 and SellTrade5: $0 (newly activated)
- Net Profit:
-4 + 28 - 6 + 18 - 6 + 10 - 4 + 4 = +40
Net Profit = $40

6. **Sixth Price Drop ($100):**
- Triggered Trades:
- BuyLimit6: 0.06 lots
- SellStop6: 0.02 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -500 = -5
- SellTrade1: 0.07 × +500 = +35
- BuyTrade2: 0.02 × -400 = -8
- SellTrade2: 0.06 × +400 = +24
- BuyTrade3: 0.03 × -300 = -9
- SellTrade3: 0.05 × +300 = +15
- BuyTrade4: 0.04 × -200 = -8
- SellTrade4: 0.04 × +200 = +8
- BuyTrade5: 0.05 × -100 = -5
- SellTrade5: 0.03 × +100 = +3
- BuyTrade6 and SellTrade6: $0 (newly activated)
- Net Profit:
-5 + 35 - 8 + 24 - 9 + 15 - 8 + 8 - 5 + 3 = +60
Net Profit = $60

7. **Seventh Price Drop ($100):**
- Triggered Trades:
- BuyLimit7: 0.07 lots
- SellStop7: 0.01 lots
- Profit Breakdown:
- BuyTrade1: 0.01 × -600 = -6
- SellTrade1: 0.07 × +600 = +42
- BuyTrade2: 0.02 × -500 = -10
- SellTrade2: 0.06 × +500 = +30
- BuyTrade3: 0.03 × -400 = -12
- SellTrade3: 0.05 × +400 = +20
- BuyTrade4: 0.04 × -300 = -12
- SellTrade4: 0.04 × +300 = +12
- BuyTrade5: 0.05 × -200 = -10
- SellTrade5: 0.03 × +200 = +6
- BuyTrade6: 0.06 × -100 = -6
- SellTrade6: 0.02 × +100 = +2
- BuyTrade7 and SellTrade7: $0 (newly activated)
- Net Profit:
-6 + 42 - 10 + 30 - 12 + 20 - 12 + 12 - 10 + 6 - 6 + 2 = +72
Net Profit = $72

8. **Eighth Price Drop ($100):**
- All trades are closed at this point, locking in accumulated profits.
- Total Profit Breakdown:
- BuyTrade1: -7
- SellTrade1: +49
- BuyTrade2: -12
- SellTrade2: +36
- BuyTrade3: -15
- SellTrade3: +25
- BuyTrade4: -16
- SellTrade4: +16
- BuyTrade5: -15
- SellTrade5: +9
- BuyTrade6: -12
- SellTrade6: +4
- BuyTrade7: -7
- SellTrade7: +1
- Total Net Profit:
-7 + 49 - 12 + 36 - 15 + 25 - 16 + 16 - 15 + 9 - 12 + 4 - 7 + 1 = +100
Take Profit (TP) = $100

This strategy demonstrates consistent profit growth over successive price drops and concludes with a take-profit mechanism on the 8th price drop, providing a clear exit point for traders.

A brief demonstration of the concept above: please note that this example utilizes SellLimit and BuyStop orders.

interesting strategy

can i ask that what if the price drop to the fourth level then return back, what to do to get out of this case?

Good question. I have laid the foundation for this strategy., so its up to forumers to come and add on ideas to make this strategy more robust. Or else, let this strategy lie down and rest.

The grid concept is original, i must say, but the problem is that, if the price goes to level 5-6-7 and then reverses, dead, you can pick to close only profitable blocks, but then you'll have floting infinite loss, i'll try to think something... probably taking partial profits or break even the further positions.

The problem is that you have to trade small in order to survive when big vol occurs and you don't know when it happens. When people make a dollar, you make a cent.

This type of ideas were circulating for years and all got abbandoned becuase they optimize performance during just 1 market condition and forget about the rest.
In your example, the math works during trending market but the system will accumulate DD and maybe get margin call during ranging markets.
Too much risk to take for little to none reward as the market ranges more often than trending