thanx man so fare so good but more testing needed
week 2+ 2days so far so good
USDJPY gave me some trouble because it went on trend but was able to break even and get out with no harm
again timing is key with this strategy and money management (for 1000$ account 0.1 lot is good but for 1 paire only)
when is the best time to close the winning trade and reopen 2 opposites ones ?
Nice one zrrsys
Hey @zrrsys this is quite similar to how I trade -never knew it had a name. Except I don’t lock my profits into the grid, I take them out and release the cash to open more positions.
Yeah, I don’t know why hedging causes such controversy. Seems to be a red flag for lots of people.
This type of strategy works for me - you need deep pockets though and it can get v scarey when you are all in and get a margin-call and you have to start thinking about which positions to sell. You need laser-precise money management to avoid getting wiped-out totally. Also, trades that were supposed to be short can end up lasting a really long time (I was in a trade for a year once and you have to consider the cost of overnight funding.)
You also need enough funds to buy into the trend if it starts moving in one direction for too long. Again, if you don’t have the funds for this it’s a wipe-out.
But it’s interesting to see it has a name and people are talking about it. Of course if the price moved forever in one direction it would be unsustainable, but I compare this risk to crashing my car on the way to work and getting killed! Might happen, but probably won’t…!
I would say this is a fairly high risk trading strategy, but can be profitable. You also need to spend alot of time doing sums on bits of paper, so you don’t misjudge and end up having to sell all your losing positions. I would avoid it if you are already good at predicting market movements from studing indicators/price action/candle-sticks etc.
I invented my own system, though, so it might be slightly different to this, so some of my points might not apply here. It just sounds very similar.
well so fare so good no stop losses no stress
but it is definitely not the holy grail
Thanks for this info mate.
Ah Nice One!
@ MattyMoney I like your explanation, I’m still getting there, trying to find my strategy.
I do see a lot of benefits to cost averaging and placing additional trades after pullbacks. I still use a large SL though, in case of armageddon and such.
Most trades we give up on seem to show they would have worked out if we had that patience.
I think mean reversion is the thing that fits here. Am i right?
Clearly you have not tested your strategy. Several years ago when studying engineering mathematics, I studied combinations and permutations. How many possibilities are there in this particular instance? Your strategy will not work.
I am glad we have this explanation. I think you assumed price will remain within a given range. However, it can also continue to rise or fall.
that’s for sure …
(i’m wondering whether that’s connected with the fact that the OP hasn’t posted here for a couple of years!)
He gave it a nice title I had to spent time reading it, hahaha