Do most people actually understand this about Spot Grid bots?

I've 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 shopping for and accumulates stock. After buying at $80, its subsequent grid sell could be at $85.

Regionally, that's right:

purchase $80 - promote $85 = profitable grid cycle

But when equal amounts have been collected at $100, $95, $90, $85 and $80, the typical worth of the whole inventory is around $90.

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

Grid trade: profit

General amassed position: nonetheless under average

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

I observed this virtually immediately once I first tried a grid bot, but my good friend nonetheless assumes that each worthwhile grid sell should even be profitable for the whole collected position.

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