Do most people actually understand this about Spot Grid bots?

I've a pal using Binance Spot Grid, and this is surprisingly onerous to elucidate to him.

Think about equal grid levels:

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

During a decline, the bot keeps shopping for and accumulates stock. After shopping for at $80, its subsequent grid promote could be at $85.

Regionally, that's right:

purchase $80 - promote $85 = profitable grid cycle

But if equal quantities have been accrued at $100, $95, $90, $85 and $80, the typical worth of the whole stock is round $90.

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

Grid commerce: revenue

General amassed position: still under common

The bot isn't necessarily doing something flawed — it's just managing grid pairs, which isn't the same thing as managing the price foundation of the entire place.

I observed this virtually instantly once I first tried a grid bot, but my good friend nonetheless assumes that each profitable grid promote should also be profitable for the entire accrued place.

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