Do most people actually understand this about Spot Grid bots?

I've a good friend using Binance Spot Grid, and this is surprisingly onerous to elucidate to him.

Think about equal grid ranges:

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

During a decline, the bot keeps buying and accumulates inventory. After shopping for at $80, its subsequent grid promote might be at $85.

Regionally, that's right:

purchase $80 - promote $85 = worthwhile grid cycle

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

So at $85 you possibly can have:

Grid commerce: revenue

General amassed place: nonetheless under average

The bot isn't essentially doing anything flawed — it's just managing grid pairs, which isn't the identical factor as managing the fee foundation of the whole place.

I observed this virtually instantly once I first tried a grid bot, but my pal still assumes that every profitable grid promote should also be profitable for the entire collected position.

Did you perceive this before using grid bots, or only after operating one?