Profit Allocation (%) GRID

Written By Ehsaan XP

Last updated About 2 months ago

Overview

Profit Allocation GRID is an automated profit re-allocation feature that allows you to allocate a portion of your realized grid profit after a grid cycle is fully completed.

Profit Allocation GRID increases your grid order sizes automatically, enabling long-term growth without adding new funds.


What is Profit Allocation GRID?

Profit Allocation GRID allocates a user-defined percentage of realized profit back into the grid once all sell orders in a grid cycle are fully closed.

The allocated amount is evenly distributed across all grid orders, increasing their size proportionally for the next grid cycle.


Why Use Profit Allocation GRID?

Profit Allocation GRID is designed for users who want to:

  • Re-allocate profits automatically

  • Grow grid order sizes over time

  • Reduce manual strategy adjustments

  • Maximize efficiency in range-bound markets

  • Run long-term grid strategies with minimal maintenance


How Profit Allocation GRID Works (Conceptual Overview)

  1. A grid strategy runs normally with buy and sell orders.

  2. A grid cycle is considered complete only when:

    • All sell orders are fully closed

  3. The system calculates the realized profit from that cycle.

  4. You define what percentage of this profit should be allocated.

  5. The allocated amount is:

    • Distributed evenly across all grid orders

    • Added proportionally to each order size

  6. A new grid cycle starts with increased order sizes.

Profit Allocation GRID is never triggered during an active grid cycle.

Let's watch the video simulation:


What You’ll See in Practice

After a grid cycle completes, the system will display:

  • Grid cycle completion status

  • Total realized profit

  • Allocated amount

  • Updated order sizes for the next cycle

Grid price levels remain unchanged. Only order size is adjusted.


Compounding Example (Hypothetical)

Initial Setup

  • Grid Levels: 5

  • Order Size: 200 USDT

  • Total Investment: 1,000 USDT

  • Profit Allocation (%): 50%

Cycle Result

  • Realized Profit: 100 USDT

  • Allocated: 50 USDT

Order Size Adjustment

  • Allocation per order: 50 ÷ 5 = 10 USDT

  • New order size: 210 USDT

Compounding Over Time

Cycle

Order Size

Total Grid Capital

1

200

1,000

2

210

1,050

3

221

1,105

4

232

1,160

This demonstrates how Profit Allocation GRID enables gradual compounding across multiple cycles.


Detailed Scenarios

Scenario 1: Partial Grid Completion

  • One or more sell orders remain open

  • Profit Allocation GRID is not triggered


Scenario 2: Profit Allocation (%) = 0%

  • You can keep all the profit

  • Grid restarts with unchanged order sizes


Scenario 3: Profit Allocation (%) = 100%

  • All profit is allocated

  • Order sizes increase more aggressively


What Profit Allocation GRID Does and Does Not Do

Profit Allocation GRID Does

  • Allocate realized profits automatically

  • Increase grid order sizes proportionally

  • Trigger only after a full grid cycle

  • Keep grid structure and price levels unchanged

Profit Allocation GRID Does Not

  • Change grid price levels

  • Add external funds

  • Allocate unrealized profit

  • Trigger mid-cycle

  • Change the number of grid levels


Key Rules to Know

  • Profit allocation triggers only after all sell orders are closed

  • Only realized profit is used

  • Allocated profit is distributed evenly

  • Order size increase is proportional

  • Grid price levels remain fixed


How to Set Up Profit Allocation GRID

  1. Create or edit a Grid strategy

  2. Enable Profit Allocation GRID

  3. Set the desired Profit Allocation (%)

  4. Start the strategy

Profit Allocation GRID will run automatically after each completed grid cycle.


Practical Tips & Best Practices

  • Start with 20–50% Profit Allocation(%) for balanced growth

  • Use higher profit allocation percentages in sideways markets

  • Monitor capital growth periodically

  • Remember that increasing order size increases exposure

  • Combine with stop conditions if risk control is required


FAQ – Profit Allocation GRID

  1. Does profit allocation happen after every trade?

    No. Profit allocation occurs only after a full grid cycle is completed.

  2. Can I stop profit allocation?

    Yes. You can edit Grid and turn OFF profit allocation option.

  3. Does Profit Allocation GRID change grid prices?

    No. Only order sizes are adjusted.

  4. Can I change the profit allocation percentage later?

    Yes. Changes apply to the next completed grid cycle.

  5. Is Profit Allocation GRID the same as DCA Profit Allocation?

    The concept is similar, but Profit Allocation GRID applies profit allocation at the grid cycle level, not per individual order.

  6. Will profit allocation change my profit amount?

    Yes — indirectly.

    Profit Allocation GRID does not change your profit rate or strategy logic, but it can change the profit amount over time by increasing order sizes through compounding. Example:

    • Grid profit per cycle: +2%

    • Initial grid capital: 1,000 USDT

      • Profit = 20 USDT

    After one completed grid cycle:

    • Allocated profit increases grid capital to 1,200 USDT

    Next cycle (same +2% performance):

    • Profit = 24 USDT

    ✔ Same strategy

    ✔ Same profit percentage

    ✔ Larger order size → larger profit amount

    At the same time, risk scales the same way if the market moves against the position.

    In summary:

    Profit Allocation GRID can increase your profit amount by increasing order size, but it does not guarantee higher returns.

  7. Does Profit Allocation GRID increase profit?

    Profit Allocation GRID can increase the absolute profit amount over time because it increases order sizes through compounding.

    However, it does not:

    • Change profit percentages

    • Improve strategy edge

    • Guarantee higher returns

    Profit Allocation GRID increases capital exposure, which increases both potential profit and potential risk.

  8. Does Profit Allocation GRID work with Trailing Up?

    Yes. Profit Allocation GRID is compatible with Trailing Up.

    How they work together:

    • Trailing Up adjusts grid price levels upward as the market moves

    • Profit Allocation GRID increases order sizes after a full grid cycle is completed

    Each feature operates independently:

    • Trailing Up manages price levels

    • Profit Allocation GRID manages capital allocation

    They do not interfere with each other and can be safely enabled together.

  9. How can I get access to Profit allocation?

    With this addon, you can have access to Profit Allocation Grid

    https://online-line.com/products/online-learning/t-addons/860

  10. Are there any restrictions on the settings when profit allocation is working?

    Profit reallocation does not work for the bearish grid, but it is planned in the development