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Arithmetic vs Geometric Grid Trading

There are two common ways to space grid levels: with a fixed distance or with a percentage. NuxGrid uses a dynamic percentage-based approach.

01TWO WAYS TO SPACE A GRID

Arithmetic or proportional

Arithmetic spacing uses the same absolute price difference between levels. An illustrative sequence is 100, 95, 90, 85. Every step is five price units.

The currency distance stays constant, but the percentage distance changes as the reference price changes.

Geometric spacing uses a percentage difference from one level to the next. With a 5% downward step, an illustrative sequence is 100, 95, 90.25, 85.74.

The absolute difference becomes smaller at lower prices, while the percentage relationship remains approximately consistent. Neither approach is automatically better. Results also depend on fees, capital, execution, and the selected parameters.

Arithmetic spacingSame distance between every level
100− 5
95− 5
90− 5
85
Always −5
Proportional spacingPercentage of the previous price
100− 5%
95− 5%
90.25− 5%
85.74
Always −5%

Neither system is automatically better: they simply calculate levels in different ways.

02THE APPROACH NUXGRID USES

NuxGrid uses percentage spacing

When a buy is filled, NuxGrid can calculate a lower next candidate by applying the configured spacing to the reference level. Candidates are produced progressively from the strategy’s actual state, rather than necessarily preparing a whole grid in advance.

That makes NuxGrid’s spacing closer to geometric or proportional spacing than to fixed-dollar arithmetic spacing.

Example with 2% spacingExample · Illustration
Last buy67,500
− 2%
Possible next buy66,150
− 2%
Possible following level64,827
Simplified illustrationLevels are calculated progressively from filled buys and the strategy’s actual state. NuxGrid does not necessarily prepare a fixed list of levels in advance.
03NUXGRID IS NOT A FIXED GEOMETRIC LADDER

A dynamic approach, not a predefined grid

This distinction matters. NuxGrid does not create a textbook finite geometric grid with a predefined number of levels and a fixed bottom. It calculates candidates dynamically from the current strategy state.

There is no configured grid count and no fixed upper or lower range. Candidates can also be skipped when they conflict with existing buys or active take-profit sells.

Classic fixed grid
Upper bound
Level 1
Level 2
Level 3
Level 4
Lower bound
  • Bounds defined
  • Number of levels defined
  • Grid prepared in advance
NuxGrid
Current price
Next candidate
New candidate if needed
  • No fixed upper bound
  • No fixed lower bound
  • No predefined number of levels

NuxGrid calculates candidates progressively from the strategy’s actual state.

04BUY AND TAKE-PROFIT: TWO DIFFERENT THINGS

Spacing does not determine take-profit

NuxGrid’s buy spacing should not be confused with its sell target. A filled buy creates a related take-profit sell based primarily on the parent buy level and the effective take-profit rate. The sell is not simply the next grid level in the opposite direction.

Buy filled66,150
Next buysDetermined by percentage spacing
Spacing ≠ Take-profit
Take-profit sellDetermined from the buy, the sell target and fee checks

Two different, complementary logics in the NuxGrid strategy.