Do most people actually understand this about Spot Grid bots?

I have a good friend using Binance Spot Grid, and this is surprisingly exhausting to elucidate to him.

Imagine equal grid levels:

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

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

Regionally, that's right:

purchase $80 - promote $85 = profitable grid cycle

But if equal amounts have been amassed at $100, $95, $90, $85 and $80, the typical worth of the whole stock is round $90.

So at $85 you'll be able to have:

Grid commerce: revenue

General accrued position: still under common

The bot isn't essentially doing something mistaken — it's just managing grid pairs, which isn't the identical factor as managing the price foundation of the whole position.

I observed this virtually instantly once I first tried a grid bot, but my good friend still assumes that every profitable grid sell must even be worthwhile for the whole amassed place.

Did you perceive this earlier than using grid bots, or solely after operating one?