I dont increase the lot sizes each time though I have tried that. I believe that the key is to keep the lot size very very small. It may seem that you make a small amount but because you make hundreds of pips each week it makes up for it. What I think you need to do is look back at the weekly for the past few years and see how far it has moved in one direction before a pull back and then work out what you would need to cover that move. Hope that helps
Well, that was only a thought nzpennyā¦ Iām trying to define and optimize my rules of trading for this systemā¦ but sometimes it seems to be very difficult to overcome trending markets, Iāve seen for GBP/USD going up 1000 pips without a 200 pips pullbackā¦ that is something Im trying to resolve by myself but do you wanna share something??? 
So why not try to work out what lot size you would need to cover that kind of move.
As I said, I trade with VERY small sizes becaause I get all the moves. So you then only need it to bounce back 500 pips to close out all positions and you have at least 1000 pips banked as well. You can also get extra pips with this system with all the small bounces along the move so if the trend is down also put sell limits at all your buy/sell points for the little bounces. Hope this helps
Hi Isidro,
Any updates on your progress with this system?
Thanks
Raffy
Yes, i am also wondering how you are going with this
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Hi Nzpenny,
Just quick questions for you.
- how many pairs do you trade using your system thats similar to this?
- do you have a sort of an āexpiry dateā for your grid? or you enter orders
daily?
Thanks Raffy
I only trade the gbp/usd. I am not sure it would work with other crosses but if you look back over many years history with this pair you will see how it would work. Euro and swissy do not bounce so much. I hold my trades as long as it needs for them to bounce back into profit then I close them all except the one at the current price range.
Thnaks nzpenny.
Ok, quick update:
Currently my equity is 384 (28% growth). A week ago I had 35%, but on 06-09 my entry didnt triggered by 1 pip!!! the high was 1.9799, and the price has fall near 1.94.
I will post images laterā¦
Regards
I have to say I agree with NZPenny that keeping your exact solution to yourself makes sense. Why risk something that is quietly making you money. The sharing of concepts and allowing others to shape these to their own personality is the way to go
Would anyone know of a broker who has the ability to do this type of trading, and who has fixed spreads for the majority of the time, and who is regulated?
I am currently using FXCM as a demo and find that there spreads vary. This may be a problem as when you enter a simultaneous buy/sell order one of the orders may not get executed leaving you in an un hedged position.
It has not happened yet but there is a possibility that it may occur.
Does anyone have any suggestions? Or does anyone know of a broker with the above characteristics?
Someone told me to use a broker that has fixed spreads and has MetaTrader 4 for this type of trading. The only reason that I can see to use this type of broker is because they have the ability to simultaneously buy/sell the same currency at the same time. I am not sure that they use fixed spreads though.
Would anyone have any ideas?
I use interbankfx and have traded this system live for 8 months and have never had a problem with them
Thanks for ur reply nzpenny
Does InterbankFX have fixed or variable spreads?
Variable but I have never had a problem
Hey Im trying a system almost cloned LOL. I profit In the rage and in the consolidation. I Started a week ago and Im still under backtest, the only diference is the way I get in. I use GBP/JPY only and I use Bollinger Bands (20) and Stochastics 14,3,3 to look for retracements signals and then as soon as a signal take place I buy and sell at the same time and wait for a wide amount of pips like 200 and then I start looking for an entry wich suggest a reverse. Then I close the position with profit, let the loss run, and open two new position (buy and sell) waiting for the market to retrace to the breakeven point of the runing losses. So I exit with profit. If the price keep going in one direction instead of reverse I do the same when I get the same range that I used before. (the gap change due to the entry signals). I hope this help a little bit with the srategy and keep doing researches. I will post my backtest results as soon as I finish.
Best regards
Dachel Miqueli
can you show me on a chart?
maybe this videos can help you understand better in the mean time Im working on the charts to send them to you
YouTube - Module1: Introduction to No Stop,Hedged, Forex Grid Trading
I donāt understand this part ā¦ Iāll watch the video you posted & see if that helps. Thanks.
First let me apologize for my english LOL. Iāll try to explain better.
Well I was saying that I take the the size leg of the grid by apreciation, calculation etc. To make money I need a retracement right? Well if that retracement does not come back yet and insteadā¦the price keep moving in the the other directionā¦I wait to have the same amount of pips of my first trade to thenā¦close the position with profit and BUY and SELL again to wait for the retracement.
Iāve been doing so good with this method. As you can see is not mechanical 100%. With more experience in the market you will be able to know better when to start and where to take profit etc. You must think out of the box.
anyway here is something I found and I guess it could be of help
The Opportunities of Trading the Forex Hedged Grid System
I have seen the hedged grid system been used successfully (and highly unsuccessfully) over the last few years. Unfortunately the failures tend to discourage traders from taking advantage of this great system. I have found that the failures are mainly due to ignorance, impatience and greed (common reasons for trading failure).
In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.
This is a brief summary of the content of our free hedged grid trading course available on expert-4x.com. Please refer to this course for more details of how money is made. The attraction is that the system is reasonably mechanical, can be programmed and does not take much supervision as exclusively entry orders are used.
Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based on the nature of the market to trade sideways 80% of the time and to trend 20% of the time.
The dangers are that what if the price does not retrace and continues to trend. The Grid system can not make money in a trending market ļæ½ full stop. One has to realize that. You therefore need Strategies to minimize damage during these periods:-
Firstly I have found that the biggest mistake made by traders is that they select a very small grid leg sizes e.g. 20 to 30 pips. This is a recipe for disaster. The trick is to use big leg sizes between 150 and 300 pips. What this does is that it sometimes turns a trending phase into movement in a sideways market. I would typically use 300 pips for the GBPJPY and 150 pips for the EURUSD for instance.
Secondly there is no rule that says that the legs have to be the same size. So I change my leg sizes in trending markets to be even bigger. If I started with 150 for the 1st leg I would go to 200 for the 2nd leg and 250 for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend.
Thirdly ļæ½ sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend. However be aware of having the same number of sell and buy transactions. All you will have done was lock in your current status in a 100% hedge.
Fourthly ļæ½ This is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions.
Fifthly:- Cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten.
People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market.