I'm reading Geometric Algebra For Computer Science, An Object Oriented Approach to Geometry and it says that this is true of any two arbitrary blades.
$\ grade( \textbf{ A} \wedge \textbf{B})=grade( \textbf{ A} )+grade( \textbf{B})$
However, it seems like this is wrong, since
$\ 0=grade( (e_1 \wedge e_2) \wedge (e_2 \wedge e_3)) \\=grade(e_1 \wedge e_2) +grade (e_2 \wedge e_3)\\ =grade(e_1)+ grade( e_2) +grade (e_2) +grade( e_3)=4$
Is this formula incorrect or am I using it incorrectly, and how?
I don't think there's any issue here. $(e_1 \wedge e_2) \wedge (e_2 \wedge e_3)$ is the zero 4-vector. It should not be confused with the zero scalar, although in geometric algebra, we can and often do use the same symbol (0) to denote any zero $k$-vector, or whole linear combinations of these zero $k$-vectors.
I would say the grade of the zero 4-vector is still 4.