Do most people actually understand this about Spot Grid bots?

I have a pal using Binance Spot Grid, and that is surprisingly onerous to elucidate to him.

Think about equal grid levels:

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

During a decline, the bot keeps buying and accumulates stock. After buying at $80, its subsequent grid promote could be at $85.

Regionally, that's right:

purchase $80 - sell $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 accrued place: still under common

The bot isn't essentially doing something flawed — it's simply managing grid pairs, which isn't the same factor as managing the price foundation of the entire place.

I observed this virtually instantly once I first tried a grid bot, however my pal nonetheless assumes that each worthwhile grid sell should even be worthwhile for the whole accrued position.

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