Modified Grid Hedge Method, Version 2

Hey friends,
I know this is quite an old thread back in 2013 and the OP wasn’t active anymore in BP…

Usually I’m very interested in grid or mathematical strategies… but what makes me more interested is the Risk Reward Ratio as per the Thread OP say:
On a Bad day = -20 pips
On a Good Day = 100 - 150 (as go high, depends on volatility)

But i can’t get how this possible… (maybe not understand the strategy correctly) ?
1 buy @ 1.4040
1 sell @ 1.4020 makes hedge = -20
Can’t figured out How this scenario always applied to other pending orders… ???

This makes a way for -40pips if price goes wrong (maybe I’m not understood the strategy really well.)
So it makes the above para statement controversial…!!

Can any fellow please help me in this regard…

1 Like

I’ve created some visual representation :computer: for the simplicity… :slightly_smiling_face:

  • As we set the pending Buy & Sell orders. Let say price hit our first Buy order and retrace back 20 pips,
  • So we set another two order of equal size in the opposite direction
  • But If price retrace back to the first order (A) direction. we are now at -60 pips … !!!

If anyone like to elaborate further on this strategy please…

Jose Achandy

1 Like

Thanks for the image representation…
I also like to know more about this as well.

Can someone join & shine some light on this…

Increasing your pip value is much better in my opinion. Needs a lot of capital though

Hi, Hairyfx
How Increasing pip value will be better for this grid setup?
&
for the Capital it depends on the MM and draw-down right ?

Hi Trendswithbenefits,

Thanks for your response brother. Like the diagram you’ve quoted.
Isn’t a range grid rather than OP’s method trend grid.(strategy that works best for trending market not for ranging)

Maybe if combine both will lessen the draw-down ??
Grid trading that works both condition except the High Impact volatility times.

Simple, just put a buy and a sell for about 20 pips apart. I’d just buy at .01 and if it goes down reaching the sell order which is a higher pip value at .03 and yeah that’s it. If it goes up the buy will be .09 and so on until you reach tp of 20 pips. Of course the drawdown is going to be big so its very high risk indeed

Brother, That is age old martingale range grid strategy, indeed disaster for any account nevertheless of any acc margin… that’s not I’m talking about…

I’m looking for the method that Thread OP mentioning…
Grid Trading that work great for Trending market not ranging & not using any lot multiplier not even think about martingale.
&
High RRR

Mine is also grid hedging bro, its not martingale at all. Consider op’s strategy, it has a 40 pip gap between the first buy and sell orders, so if price touches both of them and then moves up, you have to add more orders in order to profit. What if the price moves back down and it takes weeks or even months to reach a level where you can gain profit? That takes a lot of effort and it stresses you out as well. My suggestion however is the buy and sell orders are at the same level and it multiplies if the price retraces. Let me give you an example, firstly the tp is 20 and the sl is 20 as well. First example,I put a buy at .01 and the price goes down 20 pips(sl for the buy) and at the same time triggers my sell at .03, if it goes down 20 pips, then i profit at
-20 pips + 60 pips= 40 pips.
Second example, if the price moves up 20 pips again from my sell at.03 then it triggers my buy order at .09 and reaches my tp, then my profit is
-20-60+180=100 pips.
So its completely different than martingale, and it is a bit similar to grid hedging

Hiya @hairyfx

Thanks for contributing. Do you mind answering these, please?

  1. How do you select an entry for the first trade, as everything in your system based on your first entry?
  2. How many times do you increase the bets on the opposite side when you enter consecutive losses?
  3. How many times ever by this strategy you get unfortunate luck of getting margin-cut/stop-out?

Tnx and best of luck :blush: :shamrock:

Hi, well i like to keep it simple
1)i just enter my buy either at the 00 level or the 50 level
2) multiplying the pip value is up to you, you could multiply it by 2 as well
3) well, i’d like to stop trading when it ranges too much. But it takes a huge amount of capital to do this. You could blow up your account so this is a high risk strategy

Hiya @hairyfx

Thanks. 1) I don’t gt your terminology, as what is ‘00’ level or ‘50’ is referring to? mind explaining, please?
2) PIP based consecutive entries will depend on the size of multiplying the initial position size? By what logic and algorithm?
3) Considering the possibility that you are in the last position that you can open as you don’t have further margin available to open any more, and the market goes to the range for a month or two, shall I keep the positions open to paying swap for a month or two or shall I close all positions in loss before equity level reach the margin-call?
4) Considering the possibility that you are in the last position that you can open as you don’t have further margin available to open any more, major news happened(typical market behaviour) and spread widened or spike in unwanted direction occurs, will I get margin-call again?

If you have a source for these algorithms and strategies, it would be easier to address the matter if we have access to source or these strategies or algorithms, thus we can think of making an optimum condition out of those? Considering many grid-based strategies are already failing in many trading accounts, as many of them available on the internet, but the outcome will be loss when the certain unfortunate trend direction occurs when last position is in the unlucky direction if you know what I mean?

Tnx and best of luck :blush: :shamrock:

Think of it as general guide bro, im still experimenting though. Just wanting to gain some experience here haha. Anyway bro, my main trade is i trade monthly following the 200sma so yeah like i said, just experimenting here

Martingale MM means
[" Martingale strategy is about doubling your trade size when you lose. The theory is that when you do win, you will regain what you have lost." ]

So if anyone involve in this MM regarding whatever strategy using (grid/price action/volume/indi based,etc) listed as same category Martingale MM.

The strategy you’re talking is “Sure Fire Hedging Strategy” method 1.

Its Dangerous grid strategy, To earn 1 cent risking 1000000$.
Look the lot size if anyone caught at tight range,for just only 10 bets. (that been easily occurred)
1,3,9,27,81,243,729,2187,6561,19683,…,…,…,

19683 lot size ??? crazy :wink:
even at multiplier x2 512 lot size… (not practical even start using mini/micro lot size.)

why I’m interested in thread is the OP’s method is its little unique i guess and had a good Risk Reward Ratio…

In OP’s method at any time only -20 pips / only ONE order will be running at a loss.

2 Likes

Thanks bro, i didnt know it falls under the same as martingale. My mistake then. And your calculations and formulas are spot on, thank you for the effort of explaining this.

Not a problem bro, :slightly_smiling_face: , There are so many methods & variation in Martingale.

If you want to lower your strategy risk to 2600x times.

Use the 1.25 x multiplier lot + 1.25 x expanding grid size (on every alternate trade)

Eg : start with 1lot size then, 1.25, 1.56, 1.95, 2.44, 3.05, 3.81, 4.76, 5.96, 10th bet lot size : 7.45 lot only (instead of 19683 or 512 lot size | by x3 ,x2 )
Meanwhile 20 pips grid to 20, 25, 31, and so on…

Indeed, it will decrease the Win Ratio, but manageable if you tweak it.

I hope you find it helpful and wish you success with your trading…

Jose Achandy

1 Like

Genius! Thanks a lot bro, loved your detailed insight

Hi Can you Send the url to me?

I make use of both technical analysis and fundamental analysis in my trades. I feel that both are critical as they work differently in analyzing the market.