What is Grid Trading? The essence of grid trading, as we practice it, is to catch and efficiently profit from price action as much as possible by creating ForexGridMaster automatic trading strategies that place buy and or sell trades according to a pre-determined plan that creates a grid pattern of trade orders. With price always going up and down, even when price action is trending, grid trading can automatically cash in many profitable trades in the run of a day.
In the past, the major complaint against grid trading CounterTrend strategies has been the accumulation of too many open trades in the negative which may eventually margin out the account. This does not have to be a problem. When we developed ForexGridMaster and ForexTradeManager robots, we integrated many different settings that effectively eliminate accumulated negative trades to whatever degree the trader wishes.
ForexGridMaster enables transparent and very precise control of risk. Here is an example demonstrating how the Spike Protection works, 2 price spikes and 5 CloseRuns.
Click the image for full page view We hear a lot about FOREX trading based on technical and or fundamental analysis and or sentimental analysis, but seldom do we hear about FOREX trading based solely on mathematical analysis. Grid trading is a mathematical approach that usually pays little attention to fundamentals such as news events, or to technical indicators, or to sentiment in the market place.
There are exceptions of course. For instance you can set up straddle grids around market price just before scheduled major economic reports come out to catch the price breakout up or down. After having traded and studied many grid trading robots and strategies for 3 years since , I clearly saw what was lacking, so in August, , I started creating my own grid trader, ForexGridMaster, aiming to build the perfect tool for but not limited to mathematically minded traders to create much more stable and consistent automatic trading system strategies.
In all my years of trading, I have found that the simpler the approach is, the more effective and enjoyable it can be, and math based automated grid trading strategies fit that ticket very well for me. I prefer to work with probabilities based directly on price action and to skip the usual predictive methods using indicators and price patterns. I had years of experience with those too. Make no mistake about the fact that the forex market is much more random than you think and also heavily manipulated by the central banls and large institutional traders in collusion with those banks.
They move the market whenever they like in whatever direction they want. ForexGridMaster automates grid order spacing and spacing step, number of trades placed and allowed open at any one time, lot size, lot size increase percent, lot size increase percent step, order take profit targets and steps, stop-losses, trail-stops on individual grid orders or groups of orders, profit pips before trail stop, trail stop pips, and much more.
In fact the HedgeGrid settings can not only be used for hedging, but also to create a second grid trading on the same chart and currency pair, very powerful. The 41 minute video shows FGM trading its default audnzd strategy in fast forward mode paused here and there for explanations for a full year up to the day the video was made. It profits on average, 7. FORO is introduced in this video as well. The 51 minute video goes more into detail about FGM and strategy testing.
If FGM Express settings When the ForexGridMaster settings above have been chosen and you click the "OK" button, then FGM is initiated into trade on the first tick price move, and places the above grid of trades quickly and automatically.
This would look similar to the image of the FGM v3. Once the grid of pending orders has been placed , price may move up quickly or slowly or it may move straight down. If price moves up to 1. If price moves 70 pips up from 1.
If the price then turns and moves down as far as 1. Trades that are closed out are replaced by new pending orders. This grid can trade indefinitely above and below the MovingCenter price depending on account equity, lot size chosen and the range of price movement.
The example above is very basic. There are actually an unlimited number of settings combinations and values that can be set when creating grid strategies, including the HedgeGrid settings for hedging or trading a second grid on the same chart and currency pair simultaneously with the first grid and both combined being controlled by the CloseRun settings. Trading forex, gold or silver, or any financial instrument is speculative in nature.
Therefore, only risk capital should be used. Forex trading is not appropriate for all investors. You should carefully consider whether such trading is appropriate for you based on your financial situation, investment objectives, and risk tolerance.
Every investor should consider all advice and all offerings of products and services on their own merits and for suitability to the investor's personal needs and circumstances.
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