I am at the initial stages of testing my new system (it may not be new), which is the following:
above and below a currency’s current price, construct a series of equally spaced entry orders;
each entry order shall have a SL and a NL making a R/R ratio of 1:2, with a fixed 30 pip profit target;
the space between each consecutive order (one entry’s NL and the entry above’s SL) shall be of about 10 pips;
risk 10% of account per entry (one lot only);
at the close of each day, replenish the entry orders if some have been triggered/closed.
Advantages:
a) it can be used in a trending as well as a ranging environment, and during news/spikes/breakouts;
b) it is a “set it and forget it” style of trading, for those who only check trades after their working day;
c) it can be used on any currency.
Work in progress:
a) the number of trades per day is not yet a fixed number;
b) currency correlation not yet accounted for but may have an impact on the system;
c) the number of currencies used is not yet a fixed number.
The system is new but it is showing promise - early days, though, so too early to say for sure.
I will update results in weeks to come, once I can see how the system performs through time.
The system may be “new” to you, but not to forex trading.
Its a variation of a grid system which has a dubious track record. Rather than spending months evaluating it,
Just look for some threads of others’ experiences.
Or you can take my word for it (doubt you will lol) when I tell you I have spent weeks back testing dozens of variations (and exactly the one you are describing) and it is not a useable system… At best you’ll have a two year winning period… Then you get destroyed by a black swan event.
Hey dollareuro, codemeister, and Ilovepizzamore, thank you for your points. By the way, what is a ‘black swan event’? I had a feeling this system had already been tried, but I did not know how to find info on it: I will try searching under ‘grid’, as you suggested. Thank you.
Cheers blaserboy and PipDiddy: I have just been reading up on the ‘Hedged Grid system’ on past threads here, and I see that it attracts some supporters as much as some opposers… Hell, what is a newbie to do
After listening to you and to other internet resources (videos on YouTube), amd reading threads on “Hedged Grid system” on BabyPips fora, I have refined my strategy to make it a little simpler for me to handle, as it is a manual system; attached is a screen print of my daily journal to be used from tonight (in preparation for tomorrow), showing how I will limit myself to analysing seven (Major) pairs, and check whether they are showing trending or ranging characteristics (visually and using the ADX indicator). By doing this daily tally, I will be able to more clearly review the system… I will try to keep the thread updated every now and then.
For the newbies who do not want to waste their times going after indicators, EAs and so on…my suggestion for them to learn price action and only price action. Find the Price action related threads here in this forum. You will find guidance…
Love the discipline and the attention to detail. Keep it up, PipMeHappy! Just in case you’re interested, check out other Trading Journal Stats that may help you with recording your trading performance.
