I can suggest you something?? I have several posts in here and if you read them all you will realize that I already have a method using the grid philosophy is just that I chose the gap size wisely and my drawdowns run veryyy slow and I had 500 pips profit in my first two weeks.
I already open a new account yesterday I place my first trade on the GBP/USD, the price went down by 150 pips from my original position and then I saw a candle showing resistance, I checked the stoc, and is wayyyyy oversold so I take the profiting position and opened two more positions (Long and Short) right now is 100 pips more down, I will wait to the price to go down by 150-200pips to look for maybe another chance but my gap size will be more than the original.
Sorry about your account and I hope you learn the lesson, you will always have to think in forex to make money.
i use 150 leg sizes,
currently my open positions are all âbuyâ
1.9850
1.9700
1.9550
1.9400
1.9250
And now i know what griders mean when they say this system tends to
exponentializeâŚ
Now i am thinking of having a set limit for the number of open positions
let say 5? meaning il close the first position wheter its in profit or not when the 6th leg is opened.
By your experience is this a good idea? or will i incur loses having this rule?
is this sound money management?
I donât understand why you only have only buy positionsâŚyou can mix a lot of things but in my experience I wouldnât recomend to set a limit of opens positions, the key is to choose the gap size, It can be bigger than the first one, to choose a right size always look at the stoch since them idicates the swings and BB is also a good indicator to show that, find resistance and support, you have to realize that there is no a easy way to get profit but to earn experience, this is just another system that needs to be mastered and if it fits your style I recommend you to start a demo and try to mastered. I have several post in this tthreat so you can go back and see the way I trade to get an idea.
Thanks Dachelm for your answer. i only have buy positions left because all of the sell(short) positions(hedge) has already been cashed in⌠I am still waiting for retractment for the buy(long) positions
Regarding increasing the gap size, seems a great idea. Il try it.
Yup il read and re-read at all the threads.
Now I understand why have only buy positions. If you have limited your opens positions to 5 you have buy positions only by now âŚbut⌠If you donât limit you positions you should have a sell and a buy position by now.
This is my FXCM account:
Login User ID: FX5M764022001
Password: 7018
you can log in to check my actual trades, this account was started in less than a week so you could check there anytime.
Hi all⌠I was wondering is anyone still trade using this strategy?
This is a very interesting system =)
Iâve been trying this system myself, and tried to develop simple EA, but my EA needs some entry/exit criteria for the grid setup (When to enter/not to enter trade, and when to close all grid).
Is there realy need to have some entry?I suggest to develop ea immediatelly when drop ea on the chart and start âExpert adviserâ button.The system donât care where the price now, nevermind from which level we will begin.
Regarding exit i think ea may designed to close all opened trades in some profit (for example 20p, 30p, 40p, 50p, it will depend from the userâs settings).I have the script which close all opened positions when it observe some positive pips.I use it without problems, but i am not a programer and canât implement in ea.
It just like idea because many of the hedge systems donât care where the market.
funny u should post - i looked at this post yesterday and have set up a grid on USD / Yen on a demo to see how it goes. Im a nooobie though quite complicated this system and not 100 percent sure ive got it right.
Hi nzpenny. Great to find a fellow Gold Coast forex trader whom shares the same passion as I. I know so well after experiencing the ups and downs, highs and lows that learning forex trading is a real art form and also one in which you learn a great deal about yourself in the process. For me personally it has been the ultimate `baptism of fireâ Having the mental endurance and the willingness to learn and also realise you cannot tame the forex beast but instead learn how it behaves by understanding true tested fundamental and technical analysis and good risk management along with instigating a carefully structured and organised game plan.
I would be really wish to know if you would be interested in forming a Gold Coast based forex trading mastermind to share and expand on ideas and collective experiences. I might add that this is a personal request and as such I am not affiliated with any organisation whatsoever.
One of the challenges I find in using the grid hedge is determining the grid size.
Use a fixed grid size for a ranging market - increasing the size as a trend develops.
Use support and resistance for the points of opening long/short positions.
Using a Stochastic for initiating new long/short and cashing in positives when overbought/oversold.
On point 2. - given that most major breakouts result in a retracement how would one determine an appropriate grid size? I think using stoc would help here.
On point 1. - adjust the time in trade. For example: say you determine a range of 1000 pips for 7 days, and divide the grid in 5 = 200 pips grid size. Now, letâs say the range is broken and instead of expecting to be in the trade 7 days, you make the adjustment to be in for say 14 days. I think this is where you would have to plan beforehand - having looked at S/R over a larger time-frame, say weekly instead of daily.
I think this would make better sense if I posted a chart of the GBPJPY. Keep you posted.
another way you could implement into an EA with entry/exits would be Dachelmâs idea of using Stoc and/or BB. I canât think of a practical way of using BB in an EA - perhaps someone else has developed.
Thatâs the sound of a âhedge grid systemâ blowing up because the market stopped ranging and went into a long trend. Itâs all in the initials assumption as noted by the thread starter âThe Hedge Grid System assumes that the market will move sideways, since this is true most of the time the system will work well.â
The only way a spot market trader can make money on net is to have a directional exposure. These grid systems are always on the edge of exploding because they keep building positions and if the market doesnât come back as the system is built for, but instead goes into a sustained trend, the trader eventually gets margin called out of the whole thing.
i think i also trade your system. cheers⌠it makes money in ranges and as well as in trending market. just need a low spread (like 1.5-2 pips) liquid pair to trade. eur/usd and gbp/usd is best.
I know so well after experiencing the ups and downs, highs and lows that learning forex trading is a real art form and also one in which you learn a great deal about yourself in the process. For me personally it has been the ultimate `baptism of fireâ Having the mental endurance and the willingness to learn and also realise you cannot tame the forex beast but instead learn how it behaves by understanding true tested fundamental and technical analysis and good risk management along with instigating a carefully structured and organised game plan.