Do most people actually understand this about Spot Grid bots?

I have a good friend utilizing Binance Spot Grid, and that is surprisingly arduous to elucidate to him.

Think about equal grid ranges:

$100 - $95 - $90 - $85 - $80

Throughout a decline, the bot keeps shopping for and accumulates inventory. After shopping for at $80, its subsequent grid sell may be at $85.

Regionally, that's right:

buy $80 - promote $85 = profitable grid cycle

But when equal quantities have been amassed at $100, $95, $90, $85 and $80, the typical worth of the whole stock is around $90.

So at $85 you'll be able to have:

Grid trade: profit

General collected place: nonetheless under common

The bot isn't essentially doing anything mistaken — it's simply managing grid pairs, which isn't the same thing as managing the price basis of the entire position.

I observed this virtually instantly once I first tried a grid bot, but my pal nonetheless assumes that every profitable grid sell must also be worthwhile for the entire accrued position.

Did you perceive this earlier than utilizing grid bots, or solely after operating one?