The Smart Grid strategy operates by placing a series of buy and sell orders at predetermined levels, forming a grid across a specified price range. Profits are generated as follows:
Multiple buy orders are placed below the current price and sell orders above it.
When the price falls to a buy order level, the agent acquires assets.
When the price rises to a sell order level, the agent sells at a higher price.
Profit is realised from the difference between buy and sell order prices.
This strategy is particularly effective in sideways markets, as it repeatedly captures small profits from price fluctuations within the defined range. The Smart Grid initially allocates capital at a 50/50 ratio, subsequently employing the larger portion within the -50% to +200% range to build the trading grid.