trendie
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pullbacks are excellent! they are the one constant in my life.
The challenge to make grids work; I havent succeeded.
One idea was not to take buy/sells, just to take a buy or a sell, and then take the opposite trade when the trigger arrives. (using, perhaps, Stochs maybe).
The difference is, if the opposite signal was a loser, to keep it open.
That is, take a winning trade when it arrives. But to let a losing trade run.
The idea is, you accumulate profits.
But, from the grids perspective, I am stumped.
I will return to this. And win!!
harrybrizz
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Process of grid trading focus on the making of a series of buys and sells that can automatically occur when pricing on selected currencies are within a given time range....
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trendie
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I have been reviewing grids (again), along with C-Vs thread about dynamic grids.
( http://www.trade2win.com/boards/tra...rades-not-giving-flying-about-convention.html )
One possibility, perhaps more suited to CVs approach, although I see no reason why conventional grids wouldnt work, is the use of Options.
I will use CVs gold instrument as an example, as it is more illustrative.
What if, having accrued, lets say, 4 levels, the combined exposure is putting pressure on margin.
At this point, would "writing" an option be a good response?
3 scenarios could manifest: using Gold as example, the market has been going up, and therefore short positions are being accumulated.
1: the market continues upwards: the premium from the writing of the option becomes "safer", and helps to offset the increasing size of being offside.
2: the market decides to go sideways: the options premium still helps in reducing exposure, and may in time reduce the offside exposure.
3: the market starts to fall: here, we now have two competing situations. The losing positions start to reduce, and at a predetermined point, some profit is taken.
the options premium comes under threat, in the sense that the option might become worth exercising. At some point, the reduction in the size of the losing positions may be such that it may be worth using some of the premium to close out the option.
Here, if the price falls enough, some profit is banked, one or two fewer positions are held, both actions are positive for the account.
I dont know as yet, but wonder if the amount needed to close the option will be less than the premium banked. If so, this acts as another profit centre.
( http://www.trade2win.com/boards/tra...rades-not-giving-flying-about-convention.html )
One possibility, perhaps more suited to CVs approach, although I see no reason why conventional grids wouldnt work, is the use of Options.
I will use CVs gold instrument as an example, as it is more illustrative.
What if, having accrued, lets say, 4 levels, the combined exposure is putting pressure on margin.
At this point, would "writing" an option be a good response?
3 scenarios could manifest: using Gold as example, the market has been going up, and therefore short positions are being accumulated.
1: the market continues upwards: the premium from the writing of the option becomes "safer", and helps to offset the increasing size of being offside.
2: the market decides to go sideways: the options premium still helps in reducing exposure, and may in time reduce the offside exposure.
3: the market starts to fall: here, we now have two competing situations. The losing positions start to reduce, and at a predetermined point, some profit is taken.
the options premium comes under threat, in the sense that the option might become worth exercising. At some point, the reduction in the size of the losing positions may be such that it may be worth using some of the premium to close out the option.
Here, if the price falls enough, some profit is banked, one or two fewer positions are held, both actions are positive for the account.
I dont know as yet, but wonder if the amount needed to close the option will be less than the premium banked. If so, this acts as another profit centre.
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Jack Francisco
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There are so many variations, none of which seem to consistently make money, I think there's a few MT4 EA's out there as well. The major problem with grid trading seems to be there's always a few positions left floating and a long way from market.
you can also read about grid trading here: http://www.macrotactics.com/2008/03/20/grid-trading/
you can also read about grid trading here: http://www.macrotactics.com/2008/03/20/grid-trading/
There are so many benefits of grid trading..But i think the best advantage of this type of trading is that that it requires insignificant forecasting of the market direction & it could be easily automated.
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tanyach
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I've found grid trading EA here. what do you think about it?
Free Grid Trading, The New Grid EA
Free Grid Trading, The New Grid EA
the hare
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When my business partner and I first went into business, we where completely useless, and consequently had dozens of creditors chasing us for payment. As cash flow was tight, we adopted a policy of only paying those who shouted loudest. We termed this "greasing the squeaky wheel"
I used a similar approach to grid trading. The problem is handling the large open losing trades, they are the squeaky wheel that needs to be greased. So, in order to try to manage this problem we'd determine the income derived from closed trades achieved over some time period, and then we'd allocate most of that income (for example 90%) to close the largest losing trades, whilst retaining for example 10% as profit. So if we'd made say 100 pips from closed trades, we'd be looking to close losers to the value of 90 pips, so we might close one position at -40, another at -30, and another at -20 starting with the largest losers first.
It takes a bit of research to determine what sort of time period to use, grid size, and percentage of profits to retain, but its an approach I've not seen anyone else discussing in public. I spent about 4 years working on this approach, but gave it up mainly because of the complexity of managing multiple positions. We also discovered that most of the retail brokers we where dealing with placed limits on the number of open trades they could hold on their platforms, and we occasionally needed to exceed those limits, so we gave it up as a bad job.
I think you have get quite creative to make these things work, and the drawdowns even with the approach we adopted where absolutely fierce. Not recommended at all.
I used a similar approach to grid trading. The problem is handling the large open losing trades, they are the squeaky wheel that needs to be greased. So, in order to try to manage this problem we'd determine the income derived from closed trades achieved over some time period, and then we'd allocate most of that income (for example 90%) to close the largest losing trades, whilst retaining for example 10% as profit. So if we'd made say 100 pips from closed trades, we'd be looking to close losers to the value of 90 pips, so we might close one position at -40, another at -30, and another at -20 starting with the largest losers first.
It takes a bit of research to determine what sort of time period to use, grid size, and percentage of profits to retain, but its an approach I've not seen anyone else discussing in public. I spent about 4 years working on this approach, but gave it up mainly because of the complexity of managing multiple positions. We also discovered that most of the retail brokers we where dealing with placed limits on the number of open trades they could hold on their platforms, and we occasionally needed to exceed those limits, so we gave it up as a bad job.
I think you have get quite creative to make these things work, and the drawdowns even with the approach we adopted where absolutely fierce. Not recommended at all.
DO you use it only on FX? and that on Market Maker or STP
Wheer can I get the EA? for a demo?
If you use very large GAP woudl you make any profit!
WIll it work on Futures and / or Future Calnder spreads ( such as OIl Calnder , GOld Calander or Eurodollar calanderetc) menaing 2 accounts, 1 for buy and one for sell
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