Grid Accounting vs Exchange Accounting
We use grid trading strategies extensively in our operations. Understanding the difference between grid accounting and exchange accounting is crucial for accurately interpreting your trading performance.
The Issue
Grid Accounting (What We Track):
Counts REALISED profit from completed grid cycles
Example: Buy $100, sell $105 = +$5 realised profit
Exchange Accounting (What Clients See):
Shows UNREALISED PnL on open positions
Same grid might show -$3 unrealised if price dropped after last fill
Result:
Grid says +$5, exchange says -$3
Critical Difference:
Grid accounting recognises we still hold the trades to realise later as per our grid structure.
Exchange accounting assumes we don't - it only shows current open position values.
Why This Happens
Grid Bots Open MANY Small Positions:
- Some are in profit (unrealised gains)
- Some are in loss (unrealised losses)
- But the CLOSED trades already banked profit
Exchange Only Shows What's OPEN:
- Ignores the $5 you already took out
- Only shows the -$3 on current open positions
Real Example
Grid Performance:
- • 50 completed cycles = +$10,000 realised
- • 10 open positions = -$2,000 unrealised
- Grid profit: +$10,000 ✓
Exchange Shows:
- Account PnL: -$2,000 ❌
- Doesn't show the $10k already realised
Understanding Your Performance
Your exchange shows unrealised PnL on open positions only. Grid accounting shows total realised profit from closed trades.
The exchange number will fluctuate with current price. The grid number shows actual profit already banked.
Both are correct - they're just measuring different things:
- Exchange = snapshot of open positions right now
- Grid = cumulative profit from all closed trades
Your actual performance = Grid accounting + current unrealised.
If grid shows +$21k realised, that's real profit even if exchange shows temporary unrealised loss on open positions.
Quick Reference
The difference you're seeing is:
- • Grid = Profit already taken (realised)
- • Exchange = Current open positions (unrealised)
When grid cycles complete, profit is realised.
When new positions open, they show unrealised.
Your true profit = both combined.
Grid accounting tracks what we've actually made, not just what's floating.
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