Hey all,
in this thread I will show something that's quite old in trading but always fascinated me:
Grid Trading
To all of you who don't know what it is:
Basically I just place buy stop orders above the current price (if I expect an up move) or sell stop orders below the current price (if I expect a down move). I use no stops, a tp of 25 pips and a spacing of 20 pips.
Why that? Well with grid trading you will almost always have a dangler, a position where you entered at the top of an up move. Using a tp of 25 with a spacing of 20 pips is some kind of a trick to get the spread. Even though the spacing is less than the tp you will stay with one dangler in many cases but get more pips during the move.
Why gridding? No one knows how far a move will go. Using grids works incredible great in both ranging and trending markets as long as the directional bias is correct. They lose horribly if you're wrong.
I have two counter measures against this possibibilty.
1) Low leverage. I will use 100 units per order for a $1,000 account.
2) I will go with the trend in the daily chart so I won't stay in one direction forever.
I tried this before and always had interesting results, almost always better than with my manual trading only. I will place normal trades as well as I have a directional bias anyway, but those positions will be leveraged low as well, ususally more than these 100 units orders but not much more.
Let's see how this goes in the long run, I'm about to build up a very long track record here...
I'll start with a $1,000 account.
in this thread I will show something that's quite old in trading but always fascinated me:
Grid Trading
To all of you who don't know what it is:
Basically I just place buy stop orders above the current price (if I expect an up move) or sell stop orders below the current price (if I expect a down move). I use no stops, a tp of 25 pips and a spacing of 20 pips.
Why that? Well with grid trading you will almost always have a dangler, a position where you entered at the top of an up move. Using a tp of 25 with a spacing of 20 pips is some kind of a trick to get the spread. Even though the spacing is less than the tp you will stay with one dangler in many cases but get more pips during the move.
Why gridding? No one knows how far a move will go. Using grids works incredible great in both ranging and trending markets as long as the directional bias is correct. They lose horribly if you're wrong.
I have two counter measures against this possibibilty.
1) Low leverage. I will use 100 units per order for a $1,000 account.
2) I will go with the trend in the daily chart so I won't stay in one direction forever.
I tried this before and always had interesting results, almost always better than with my manual trading only. I will place normal trades as well as I have a directional bias anyway, but those positions will be leveraged low as well, ususally more than these 100 units orders but not much more.
Let's see how this goes in the long run, I'm about to build up a very long track record here...
I'll start with a $1,000 account.