Open buy and sell position at the same time

[Trendswithbenefits]

Grid Trading Gone wrong

When grid trading, I was wondering what peoples strategies are when the price only hits one of your orders due to the spread. Say you have a buy and sell open at the same price. but the price only hits one of them and moves in the wrong direction. what is the plan then?

@dbs1 Read through the thread… The Whole Thread linked Above… I demonstrated this technique back in 2019 LIVE in this forum… Most here don’t have a clue how Hedging and it’s various strategies are actually applied…

The linked thread was generated 4 years ago… An era when most of us were using 1:400 leveraged accounts… It took $2-4 margin to open a 0.01 lot position…

Unfortunately… This is no longer really achievable as margin requirements (1:30) have ensured the concept is prohibitive to most retail traders… Including me…

@tommor

If both long and short positions are opened at the same price, and new positions are opened when SL or TP are triggered, where does the profit come from?

@tommor Profit is derived from the whipsawing of a ranging Market… A trending Market will generate a long (Not Big!!) drawdown which maybe impossible to cover…

@chesterjohn

have an EA that does this and other variations of something similar. Sometimes it works well, but a ranging market can wipe you out.

@chesterjohn The type of hedging strategy that @dbs1 has put forward… Will only work in a ranging market… If your EA isn’t profitable with sideways price action… The Logic is seriously flawed…