Do most people actually understand this about Spot Grid bots?

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

Imagine equal grid ranges:

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

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

Regionally, that's right:

buy $80 - promote $85 = profitable grid cycle

But when equal quantities have been accrued at $100, $95, $90, $85 and $80, the typical worth of the entire inventory is around $90.

So at $85 you possibly can have:

Grid trade: profit

General amassed position: nonetheless under common

The bot isn't necessarily doing something improper — it's simply managing grid pairs, which isn't the same factor as managing the price foundation of the whole position.

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

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