I agree that tremolo can be more difficult up there at the fretboard than down by the bridge. And the reason comes down to basic physics. That's closer to the middle of the string, where the amplitude of the string's oscillation is at its greatest. So getting a controlled tremolo there is harder, because you're up against a moving target, so to speak, and it feels floppier. You have to move your wrist more, and with that comes greater chance of hitting adjacent strings, or not being able to play as fast. Down by the bridge, there's less movement and the strings feel "tighter", making it easier and faster to move the pick across.
But the problem is, in my mind, tremolo down by the bridge can sound awful. It's tinny, sharp, and piercing, with too much bright poppy pick noise and not enough string volume. Despite the fact that Bill Monroe liked to play real close to the bridge, and his tremolo sounded very machine-gun-like, I think most modern bluegrass players (who aren't trying to emulate Monroe style) are playing further up by the fretboard where they can get a better tone and a smoother sounding tremolo. Playing closer to the bridge requires a lot more "digging in" with the pick during a tremolo in order to get volume, which leads to that poppy pick noise and sharp rat-a-tat sound.
In my opinion, a good modern bluegrass tremolo is more of a rolling fast strum, played very loosely. Pretty much just a light brush across the strings, and played around the 18th to 22nd fret area. Not the Italian-style or Monroe-style machine-gun sound down by the bridge. But of course you'll want to decide which you like best and go that route. Both tremolo styles can be appropriate in bluegrass, depending on how you want to sound. I admit bias to liking the smoother, deeper-toned tremolo sound better, even though it's harder to get going right.
Check out Ben Hodges' tremolo (
See this video, start around 1:25). This is what I'm talking about. In fact, he does most of his playing up around the 22nd fret area, although you can see he moves his pick closer to the bridge on occasion, depending on the sound he wants at that moment. But his tremolo, like most of his playing, has a very smooth strummy sound.
In order to play your tremolo smoothly in that area, you have to get your arm more in line with the strings and make sure your wrist is nice and loose, with a relaxed pick grip and a light motion. I think Ben's technique is perfect for this.
Here's another video of his playing. He does some nice tremolo right at the end, around 3:40. But notice that during all his strummy-type playing, he's basically doing the same thing as he does during tremolo. Same arm position, same wrist movement, same area of the strings that he's picking. It's all very smooth.
With all that said, I struggle with tremolo too. I can get it going real nicely sometimes, especially at home where I'm relaxed. Put me in a public setting, where I'm paying attention to everyone else at the jam, and may be a bit nervous, and my tremolo goes to hell. It takes not only practice, but being in the right relaxed state to pull off well.
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