Falling / buy the dipIntermediate

Stack Loop

Add on each step down, sell the whole stack.

Buys once to start, then adds another lot every time the price steps a set percentage below the last buy. When the stack is up by your target, it sells everything and starts fresh.

How it works

  1. 01The loop buys a first lot to start the stack.
  2. 02Each time the price falls your step % below the LAST buy, it adds another lot.
  3. 03Every add lowers the average price of the stack.
  4. 04When the whole stack is up by your take-profit %, it sells everything and starts again.

Seeds a position immediately, then adds another lot every time the price steps a set % below the LAST buy — lowering the average as it goes. When the combined stack is up by your take-profit %, it sells everything and seeds fresh.

The math, on paper

Seed + 3 steps: $400 invested
avg $95.48
Exit at average +3%
$98.34
Gross profit on the stack
+$11.99
Modeled round-trip fees (0.02%/side)
≈ $0.16
Modeled net profit
≈ +$11.83

Worked numbers assume 0.02% per side (the current Binance.US fallback schedule) and exclude spread and slippage. They are illustrations, not forecasts; fees vary by exchange and tier.

Best for

Pullbacks in coins you want to accumulate, where you expect a recovery but want strict rules around each dip.

When it struggles

A sustained downtrend keeps handing the loop new steps — unlike Grid Ladder, there is no fixed bottom rung unless you cap the number of lots.

Good to know

The settings that matter: step size, order size and the cap on extra lots. Treat the stack as one position and size it for the worst case.

What you set

Add a lot each % dip
Step below the last buy — default 4%
Take profit (on the average)
Sell the whole stack — default +10%
Maximum extra lots
The most lots it may add after the first
Order size
Per lot
No-loss guard · Stop-loss · Snowball
As on every loop

Questions

How is Stack Loop different from Grid Ladder?

Grid Ladder’s rungs are fixed from the anchor. Stack Loop measures every new buy from the previous one, so the steps follow the price down with no fixed bottom — cap the number of lots to set one.

Is averaging down risky?

Yes. Each add lowers the average, but it also puts more money into a falling coin. If the coin does not recover, the stack stays underwater. Size the lots so the worst case is money you can leave tied up, and consider a stop-loss.