Dynamic grid spacing adjustment based on volatility #19
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We've tried adding volatility-based grid spacing, but we keep running into issues during quick drawdowns. By the time the bot detects increased volatility, the market could already be halfway to the bottom. That means we miss our chance to adjust spacing before things get messy. It's fine in calmer markets, but crypto doesn't always like to stay calm. Right now, we're prioritizing a simple grid system that nonprofessionals can easily follow. It's much clearer to say, "I have a 1% grid on BTC, and this is how many levels I can handle before needing more capital." If we went fully dynamic, we'd constantly have to recalculate spacing, trade sizes, and capital allocation, which can get confusing in fast-moving conditions. We are still exploring volatility-based spacing, and we're learning a ton on the fly. We're definitely not professional quants, so a lot of indicators we tried haven't panned out in real trading yet. That doesn't mean we're giving up. We're just not promising features that aren't thoroughly tested. For now, the static approach is the most reliable path we have, and it works well enough for people who want something straightforward. We'll keep pushing forward with research and experiments to see if we can nail a more adaptive solution that actually works. |
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I've been playing with your script for the past couple of days, and find myself enjoying it very much. I'm just wondering what your thoughts might be in terms of having a volatility based grid spacing that dynamically adjusts to market conditions. That way there would be a reduction in unnecessary trading during higher volatility, which in turn would mean less capital allocation in the event of large moves in either direction. This would also increase the trading frequency in lower volatility, and increase trading opportunities.
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