> For the complete documentation index, see [llms.txt](https://thequantsciences-suite.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://thequantsciences-suite.gitbook.io/documentation/thequantscience.io/open-source/premium-backtesting/grid-spot-trading-algorithm-v2.md). # Grid Spot Trading Algorithm V2 This backtesting software analyzes the performance of the proprietary strategy developed by our team and released as open source as a contribution to the community. **Strategy type:** manually executable **Applicability:** stocks, indices, forex, cryptocurrencies, ETFs, etc. ## Strategy The analyzed strategy is a manually executable long-only strategy, based on a grid algorithm that allows averaging the entry price across 5 different levels and closing trades once the profit is achieved. ## Accumulation The entry price, located in the center, divides the grid into two parts. When the price drops below the central price and enters the red territory, the algorithm buys a fraction each time the price breaks a red level downwards **\[A]**.

During the accumulation phase, the algorithm invests at each level an amount equal to a **Lot**. ***Lot = Current Capital / 5*** *Example: If the current capital is $10,000.00, Lot will be equal to $2,000.00.* ## Closing trades All previously opened positions are closed simultaneously at a single level within the green area **\[B]**. The sell level can be modified from the user interface **\[C]**.