Grid hedge Trading

Good day all,

i watch many paid services on this topic claiming to have the best results, i would gladly try but seeing times are hard in my country and i don’t want to spend $500 for an EA that i’m not sure going to work, i wouldn’t have spent it even if the economy was good.

Anyway…as the name suggests i will attempt to manually trade a grid setup and hedge the losers, If anyone wish to code an EA for it by all means feel free.

The idea is to both buy and sell the market, i positon pending orders in 20 pips increments from my entered trades, buy stop/sell limit for above, sell stop/ buy limit for below, and repeat every time the an order is filled

THERE IS NO USE OF STOPLOSS as all losing trades are hedged

the hedging part

When the market trends and waves all losing trades i place stop orders 60pips away with a multiplier of 4.5

This is very time consuming and takes alot of patience if an EA can be done with it then i think the potential would be amazing

here’s a link to my myfxbook to an account i trade this with

screenshot of the setup
2016-06-23_1122 - Chaddytrading’s library

Mt4-643414 System by chaddy | Myfxbook

some of the trades cause a high drawdown due to me entering the wrong lots in a hurry at times

God bless

1 Like

I use a similar grid hedge system. But the levels i open buy and sell positions are determined by the past support and resistant levels. This system makes money when the price pulls back or retraces. Therefore it is logical to pick the past reversal levels to open new 2 hedged positions. Not on some fixed pip distance. There are many free indicators at the meta trader market that draws the past S/R lines. I use “supportresistance” named free indicator at mt5 market to set my entry levels. You can use others.
My second difference from your set up is the position sizes. I double the position sizes every time I open 2 new positions.
There is a great reason for that. By doubling the sizes, you decrease the level of break even to %19 pull back. That means after the last level of hedging positions opened, if the market reverses only %20, you are in profit. I use fibonacci retracement tool to monitor the level of pull backs. The first level of fibonacci %23 is enough to put you in profit position. If you find yourself in a trending market , the drawdown may scare you.
To cut down the DD, you can skip doubling the position sizes at every other level. For example start with 0.02 lot, at second S/R level double to 0.04 lot…
Third level 0.04 again, forth level 0.08lot.
Fifth level 0.08 again and sixth level 0.16 lot and so on. That skipping will reduce your DD considerably. The most number of levels I opened was 8. %30 DD are possible. Sooner or later the price will reverse more than %20 and you will be in profit every time you trade.
I trade major pairs with min. spread like EURUSD or USDJPY. At reversal, you have to earn back all the spreads of all opened positions to be in profit. Therefore lesser the spread earlier you will be in profit at reversal. When you are in profit you close all open trades. To do that, there are couple of tools that close all your open trades in a milisecond.
I use free “piptick close MT5” tool at the meta trader market to close all my open positions.
That is important because by the time you close all trades manually, your profit level may suffer due to sudden price moves while you are closing trades. You can trade any time frame. I prefer 5min or 15min charts because I can take small profits during trending markets and I prevent huge DDs. You can trade 1h or 4h
charts but some major pairs can move 400 pips in 1 hour (historically possible) so I want to get out in profit on a 5min chart while that 400 pip 1 hour candle is forming. Yes, 5m chart is time consuming and like sculping but safer than 1h and 4h charts in terms of DDs.
Who ever writes an EA for this system should use past S/R levels for entries and position sizes should be adjustible for each level for faster profits.
Also closing all open trades should base on a adjustable percentage of reversal level or profit level. If you set it to %38 reversal, all open trades will close at %38 retracement level in profit. Until somebody creates an EA, i will trade manually. When you close every sequence of trades in profit, you usually do not complain about manual trading.