Why grid bots die: the boundary problem

Every grid has a lower boundary. Below it you have spent all your allocated capital and you are simply long, holding everything you bought on the way down, with no dry powder and no plan. People handle this three ways and only two of them are honest. Wide boundary, small size per level. You survive further down but each round trip earns less. Slow and safe. Hard stop below the boundary. You accept that the grid has failed and you exit the whole position. Painful and finite. "It'll come back." This is not a plan. It is the default that happens when you didn't choose one of the first two. The uncomfortable arithmetic: the depth your grid can survive and the return it generates per cycle are the same dial pointed in opposite directions. Anyone selling you a grid with great backtested returns and a narrow range is showing you a strategy that hasn't met its bad day yet.