Logarithmic Grid: Mathematical Approach

Logarithmic grid is an improved grid version that distributes orders not evenly, but based on how much price drops.

Comparison: Linear vs Logarithmic Grid

Linear Grid (Regular)

Range: $40,000–$50,000 (10 levels)

Level	Price	Size
1	$40k	$100
2	$41.1k	$100
3	$42.2k	$100
...	...	$100
10	$50k	$100

All levels equal — good for calm markets.

Logarithmic Grid

Range: $40,000–$50,000 (10 levels)

Level	Price	Size
1	$40k	$500
2	$40.5k	$300
3	$41.2k	$200
...	...	...
10	$50k	$20

More money at bottom, less at top — better when price falls!

Why Logarithmic Grid is Better?

Advantage 1: Works Better on Drops

If price falls 20%:

• Linear grid: buys 2–3 levels, position grows slowly
• Logarithmic grid: buys 5–6 levels (more money), position grows quickly

Advantage 2: Psychological Comfort

When price falls, you see bot buying more. Reduces panic.

Advantage 3: Better Average Price

Logarithmic grid automatically gets better entry by putting more money at bottom.

Logarithmic Grid Math

Distribution formula:

If low price = P_min, high price = P_max, levels = N:

For each level i:
price = P_min × (P_max / P_min) ^ (i / (N-1))
size = (P_max - P_min) / (log(P_max / P_min) × price)

Simply: size is inversely proportional to log of price.

Real Calculation Example

Parameters:

• Low price: $40,000
• High price: $50,000
• Budget: $1,000
• Levels: 5

Logarithmic grid:

Level	Price	Size	Profit if reversal
1	$40k	$480	If price = $41k: +2.5%
2	$42k	$240	If price = $43k: +2.4%
3	$44k	$160	If price = $45k: +2.3%
4	$46k	$80	If price = $47k: +2.2%
5	$48k	$40	If price = $50k: +4.2%

Result: if price drops 15% to $34k, grid works maximally.

When to Use Logarithmic Grid?

✅ Downtrends — works best ✅ Volatile assets — (crypto) ✅ If expecting drop — after rally

❌ Strong uptrends ❌ Very stable assets

Beginner Configuration

Recommended setup:

• Range: from current price -20% to current price +10%
• Levels: 7–10
• Budget: $1,000–$5,000
• Stop-loss: -15% from lower bound

Strategy Comparison Table

Strategy	Sideways	On Drop	On Rise	Complexity
DCA	+20% over 6 mo	+80% over 6 mo	+20% over 6 mo	Easy
Linear Grid	+50% monthly	+20% monthly	-20%	Medium
Log Grid	+50% monthly	+100% over 6 mo	-10%	Medium

Logarithmic grid is a sweet spot between simplicity and results.

Ready?

Try logarithmic grid in Paper Trading first to get comfortable!