GRID trading - 400 pip movement without a 100 pip retracement?

mail2jenni

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Hi All,

Am trying to back test a strategy. Do you know if a ccy can move 400 pips before it retraces by 100 pips

Is there any way to use any feature in any charting package/system to back test to see

- HOW MANY TIMES A CCY PAIR CAN MOVE 400 PIPS BEFORE IT RETRACES BY 100 PIPS?

Thanks for your help !!
 
no real set amount , but price will almost always retrace, make sure when you grid trade your extra trades in small size, if it retraces then take the smaller loss- grid trading is a good way of avergaing down, im looking into it lately
 
extra trades ..

no real set amount , but price will almost always retrace, make sure when you grid trade your extra trades in small size, if it retraces then take the smaller loss- grid trading is a good way of avergaing down, im looking into it lately

thanks for your response TAjammy.

not quite sure how a smaller size will help ..care to explain?

as i understand, if it hits 4th leg, it will be a loss case...neither the size of the lots nor the grid size reduction will help anyway.

Regards,
jb
 
well i don't really know to be honest, grid trading has a personal touch to it, you have to decide how much you will add to your position every say 10 pips, you have to backtest it im afraid
 
Sorry, but isn't this a blatant case of the blind leading the blind?

Based on your posts TAjammy, you're about as raw and unclued as any novice I've ever encountered. And there's nothing wrong with that – that’s a great place to be - with the right attitude and the appropriate mix of asking/receiving/own efforts.

But I find it somewhat incredible with all your apparent lack of expertise and experience, you're giving someone else advice. Or rather, failing to when faced with the most simple of queries into what it is exactly you're talking about.

I made the mistake of responding to one of your posts a while back in a serious and hopefully helpful manner, before realising you were a trading butterfly, flitting from one system to the next without any real idea about or interest in any of them, and clearly no evidence of any further effort or research expended on your part.

There’s nothing inherently evil in bull**** as it is in the majority of cases, as I’m sure it is in yours, perpetrated with positive intent, in a positively hopeful rather than definitely knowledgeable state of mind. But, can I respectfully suggest you get your own act together before ‘helping’ others and end up taking them down the wrong path completely through your own well-intended incompetence rather than any mindful malice.
 
Do you know if a ccy can move 400 pips before it retraces by 100 pips
Yes, of course.

- HOW MANY TIMES A CCY PAIR CAN MOVE 400 PIPS BEFORE IT RETRACES BY 100 PIPS?
There's no statistical relationship between any given movement in any pair and the probability of any given retracement dependent upon that move. Any relationships you might find will be post hoc and will be completely unreliable at best and financially disastrous at worst.
 
This sounds like one of those things that will work until the day you completely and utterly blow up. Sort of like spread trading really, just average your tits off until it either comes back or you go bankrupt. I'd stay well away if I were you.

P.S TAjammy isn't someone I'd take advice from, TheBramble most definitely is. Unless it's about friction or rotational forces, in which case he's a clueless tw@t.
 
No offence intended, I'm sure you're a nice enough chap. I wouldn't listen to anything I said iether to be honest, so the OP is in something of a quandry.
 
i'm afraid i started ouyt the way a lot of people do, jumping from style to style, learning a little about a lot and not really specialising in anything.

Luckily for me i'm learning order flow - it makes sense for me more than any other approach i have taken, im impatient with profit taking, ambitious so i thought scalping in some way or another would be the way to go ....
 
If the wheels of the airplane were ‘locked’ and the engines are off, and the treadmill accelerated the plane forward to takeoff speed relative to an off-treadmill, off-plane stationery observer, the plane would lift off – however momentarily…(This is the catapult scenario. A significant component, albeit using a steam powered sling rather than a conveyor, of an aircraft carrier takeoff, but they give the pilot a fighting chance by not locking his plane’s wheels and granting him permission to burn his engines).

If the conveyor belt was ‘locked’ and the plane’s wheels were allowed to freely rotate and it fired up its engines and achieved take-off speed it would take off and continue to fly for as long as the engines maintained sufficient thrust. (This is the general case normal runway takeoff scenario).

If the conveyor belt and plane wheels are free running, and the planes engines fired up and the entire system was operating under the normal laws of physics and aerodynamics, the plane would achieve take off at take off speed. (This is a variant of the normal runway takeoff and we can largely discount any frictional forces between the plane wheels and the conveyor).

If (and this is the question as normally posed) the conveyor belt is suitably modified so that any and all forward movement of the plane as evidenced by imminent rotation of the planes wheels is immediately and exactly matched by a reverse motion of the conveyor, the plane can never take off as it will never achieve the necessary airflow over its wings for takeoff to be possible. (This is the theoretical scenario which would be tough to engineer in reality, but from a theoretical perspective, is perfectly valid and quite correct.

I dispute that both answers are correct based on whether one takes a theoretical or realist point of view.

If the conveyor belt can be controlled to exactly counteract any and all rotational motion of the plane’s wheels, the plane isn’t going anywhere.


Stephen W. Hawking
 
I don't think that was the response Prof. Hawking was expecting.

Mind you, in his state, he'd probably welcome being able to suck anything....
 
2 legendary members and 1 senior member offered to help answer a newbie's query ... thank you all.... if i may ask for more help here ...

am trying to find out a strategy to help me enter trading ..

am not too convinced to take the approach of a normal TA based strategy to enter a trade IF A SIGNAL SHOWS UP IN A SETUP BASED ON SQUIGGLY LINES. Everything is historic or lagging indicators..

so i was looking at other alternatives.... Grid trading is the first of them ..

is there any way to hedge the 4th leg non-retracement/trending of the grid trade?
 
DON'T GRID TRADE WITH LEVERAGE!
Also KEEP EXPOSURE <10% TO ANY PARTICULAR NON-LEVERAGED MARKET!

Sorry for the caps. (high 5!)
 
Just take a look at September last year. Plenty of examples of that happening.
 
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