Core Viewpoint - Grid trading is a strategy that utilizes the principle of buying low and selling high within a predetermined price range, making it particularly effective in volatile market conditions [1]. Group 1: What is Grid Trading - Grid trading involves setting multiple buy and sell points within a defined price fluctuation range, allowing for repeated buying on dips and selling on rises to capture price differences [1]. - The strategy is most effective in oscillating market conditions, as historical data indicates that a significant portion of the A-share market operates within such structural oscillations [1]. - It is important to note that grid trading is not suitable for trending markets, as significant unilateral price movements can lead to strategy failure [1]. Group 2: Advantages of Grid Trading Strategy - Grid trading can be automated through brokerage software, allowing for parameter configuration that facilitates automatic buying and selling, thus minimizing emotional interference and ensuring trading opportunities are not missed [2]. - The strategy is user-friendly for ordinary investors, as it does not require in-depth analysis of the underlying asset's fundamentals, financial status, or cash flow; only appropriate buy and sell prices need to be set [3]. - Grid trading is particularly advantageous in volatile markets, as it typically involves increasing positions at lower prices and reducing them at higher prices, significantly lowering investment drawdowns and enhancing the probability of achieving positive returns [4].