Neutral Grid Trading
with Long and Short Legs
Compare both sides of the range under an illustrative annualised-return assumption.
A neutral grid is not about predicting direction. It is about structuring exposure so that a move to either boundary does not leave the strategy wildly unbalanced. One side works as the long grid. The other acts as the short grid.
This page calculates a mechanically symmetrical split, shows what each leg does at both edges, and estimates how long an assumed annualised return would take to offset the weaker modelled boundary. No configuration becomes risk-free: market, funding, liquidation and execution risks remain.
Neutral Grid Configuration
Long Grid + Short GridRange Payoff Map
The green line tracks the long grid. The red line tracks the short grid. The cyan line shows the combined structure after both legs are added together.
Capital Split
The split is recalculated automatically whenever the range or total capital changes, aiming for the most symmetrical boundary outcome. You can still override it manually afterward.
Current auto split: long $1000.00 / short $1000.00
Modelled Offset Timing
This arithmetic assumes a constant return and an unchanged market. Reaching the displayed time would not make the position risk-free or protect capital.
Boundary Symmetry
In a balanced neutral grid, both edges should feel close enough that time and yield can realistically absorb the remaining gap.
Lower Boundary
Price hits $80.00 (-20%)
Upper Boundary
Price hits $120.00 (+20%)
Side-by-Side Breakdown
| Scenario | Long Grid | Short Grid | Combined |
|---|---|---|---|
| Price -> $80.00 | -15.00% | +5.00% | -5.00% |
| Price -> $120.00 | +5.00% | -15.00% | -5.00% |
Understanding the Neutral-Grid Model
Two engines instead of one directional bet
A neutral grid combines two directional legs. One responds better to strength and the other to weakness, but both can incur losses and the combined result still depends on price path, costs and execution.
An assumed return changes the arithmetic
Entering an annualised-return assumption produces a simple time-to-offset estimate. Actual returns are variable and may be negative, so the output must not be read as protected capital or an expected holding period.
A clean framework, still a simplified model
This page does not model funding, slippage, liquidation, or changing volatility inside the range. It is a decision tool, not a promise. Its value comes from making the payoff visible before capital is deployed.