I`ve built an EA like this over ten years ago and when the market explodes to one direction (and it will), you end up stuck with dozens of opened orders forever waiting for the pull back. This kind of strategy only works if you set a limit where you get out no matter what. Spread and execution problems (yea kids, forget about your demo/illusion account) make things even harder. But despite all that I like grid strategies.
Yes you are right. I have been trading it for 14 years now - you need trading skills to read the market and select the right currencies and spread your risk trading a balanced portfolio of currencies and different settings
A market going up isn't a failed bot you made money... A bot going down too far should have a stop loss set. Not that difficult. Grid bots aren't something you want to run forever. It's a strategic tool for certain market conditions
@@Expert4x I was expecting you to mention it in the video (how to deal with breakouts). Months of successful deals (and in most cases the whole accounts) are constantly being erased by strong trends. It is typically just one major news, that happens when market is active, but you are asleep. I understand that reading the market is a whole different subject, but could you please explain how do you set your stop loss for the occasion when the pair breaks out of your range if you do actually use any.
All trending markets have pullbacks. That's when you should liquidate all positions. I.e., let's say the market is trending bullish and you hit (5) back-to-back grid points to the upside without retracement. You now have 5 longs that made 100 pips each, but also have 5 shorts dangling with unrealized loss. As soon as you get a pullback down one grid, you just liquidate everything. Your last (6th) buy will break even with the last (6th) sell, your 5th sell will break even, and so you end up closing 5 buys in the money and 4 sells out of the money. You still net +100 pips (or whatever the grid size is), minus the overnight charges for intraday trading. Not super profitable, but you clear the table with a small profit. So you could program the EA to stop amassing new positions if you have 5 straight moves to the upside (or downside). Or for however many in a row you think is reasonable, adjusting your position sizing accordingly. Granted, there's still risk of continued move without retracement, so you have to study the pair to see how many grid points it can cover on a strong move without retracements. Probably should avoid volatile pairs like GBP/JPY, or USD/SEK, etc. If the pair has a retracement 9/10 times within (x) number of grids in strongly trending market, set up an ejection stop loss. That is, liquidate everything on the n-th consecutive move with equal buy/sell ratio, your only loss is overnight charges. If this happens rarely enough, you'll still be ahead. Wait until the market calms its tïtties down and runs out of steam for the trend, then jump in the game again to profit in the ranging market.
The maths for this only works if the market reverses within 2 grids - if it continues in athe same direction for 3 or more grids the open trades outweigh the cash ins
I start to think those who are profitable in the market are the ones who pick 2 sides of the coin systematically, rather than analyzing how the gravity and the wind turbulence would affect the spinning coin in the air to predict which side of the coin will occur on the table
Grid trading is a textbook example of a martingale trading strategy. This means, that the strategy increases risk and leverage with increasing losses (unless a stop-loss has been hit). It’s similar in nature to the well-known example of the roulette betting strategy - always bet on one color and if you lose, double up your bet until you win again (or until you get broke). in the long run this will blow up your account, all it takes is a market change with big highs or lows and you're screwed. If it really works well, just show a week of "live" trading with this system.
This is only an introduction to basic grid trading. No, it is not Martingale at all due to the wavey nature of the market - there are some variables that give traders risk control such as the variable and dynamic gap sizing, portfolio hedging, low volatility currency selection, and variable position sizing, one-directional trading etc. This EA has been around for more than 10 years so have become very sophisticated.
@@Expert4x Hi, If it is true it performed well over 10 year please show me any MT4 backtest lasting 10 years on any pairs you like more. I think that adding more and more positions opened without a stop loss, at first big unpredictable market move, you blow up your account. You constantly increase you exposition to the market, leaving less and less space to open new trades. And now or late, it will arrive a moment where you get stuck with 200-300 opened positions, and you won't be able to open more, even if the floating balance is not loosing too much, because of the missing margin. Game over! The more the opened trades, the more the probability that a short move in the wrong direction can lead to a big loss and a margin call. Am I wrong? How much % do you risk on any single order? 0.1%? What does happen when the price swings around a buy/sell level? You would be constantly opening and closing position, every time loosing the spread...right? Thanks.
@@Expert4x It won't work and the plain fact you promote it and persist it works, is proof you're NOT a real trader. Real traders KNOW it doesn't work. You're just another charlatan full of BS.
Thanks. Your perspective is always based on your personal experience. Results vary - often traders blow accounts with exactly the same strategy that makes other traders very rich. Same Strategy.
Major flaw in this strategy is to decide when not to close the position and wait till it is back to the original grid level to have breakeven. That decision is the only profit-making point rest all is a zero-sum game. Either we can keep on waiting till the desired breakeven is achieved or it may never be achieved so book loss.
When you hedge a position when you do you close a losing position? Getting this concept is really important to my work. I'm a grid trader but really dont understand the money method implemented starting at point 1:54 in regards to losing position. I understand the hedging position at a buy and sell starting at a level, closing when a winning position level is reached but when do you close the losing position? Wouldn't the account up in account balance but you'd always have a loser running? Really trying to understand what happened to losing trade and when to close the trade in drawdown. Some insight here would be helpful.
@@Expert4x Thanks for the quick reply. I think I got it. So essentially when 2 have positive positions in any one direction. The first is a hedge. The second is opened at the second level (only in the same direction) and the third level is the close for three in a row. 2 in the positive profit. 1 in drawdown. Worst case scenario you’re looking at a range of three open positions and the forth you’ll make profit on it. Repeat. Thank you. This is really useful.
i couldn't understand why you are buying and selling at the same time; what is the advantage of doing that since you are just looking for reversal to make money ???
On lateral markets it works nice... Once markets spikes and keep the tendency you start to accumulate opened positions and things get nasty. Maybe if you only open the trades into one direction you would reduce your risk by half.
If you open both a buy and sell position at the same grid levels, you would have a bunch of winning trades that are cashed out and a bunch of losing open trades. You could just close all the losing trades if you want and come out break even.
@@aldenasher8 and you also have spread and transaction costs, you can't break even. You need to have margin to keep those losing trades opened or you gonna keep losing on spread.
I have a couple of questions. I use the grid system too but I use Think or swim which the daily chart always starts at the same time. In other words, say, at 6:pm the chart will start over. I use the high and low of that 24 hour period to build my grid. I use that start and my script will calculate the high and low for that 24 hour period then devide that up into a grid starting at 0 for the low and 100 for the high and that is divided into quarters like 0, 25, 50, 75 and 100% lines. It works great knowing that yesterdays prices control what prices will do today. I do the same with fib levels based on yesterdays high and low.
Hi, I understand that you use previous day's high and low with 0 at the low. What do you do with the 6 pm start? I am not clear. Also, when you use grid with qtrs starting at low, do you follow the same logic of 1 buy and 1 sell at zero? or just buy only at zero and above and sell only below O.
@@orkayen On my charts, the new day starts at midnight central time. That is where all of the indicators reset. The software will draw all of the lines on the chart and label them. I use two monitors, one with fib levels and the other the previous days range, labeled 0 to 200 and 0 to -200. I can change these nimbers if the days range is to large. It can really cramp the chart andd make it messy. I can send you some photo's if you will give me your messenger or another way to send the photo's to you.
@@orkayen Its better if you have two monitors so you can have the previous days range on one monitor and fibs on the other monitor. Sometimes price will stop on one of the previous days numbers and other times they will stop on one of the previous days fib levels. I have custom indicators that I wrote that are very accurate too.
Thanks. My question is on the orders. Do you enter both long and short at each grid levels? when do you enter the first trade? at the 6 pm open? or at the low?
Grid , hedging , martingale all are shortcuts of Trading profits , these are not true knowledge this is all "try it may be it work for you" , true knowledge is Understand the Market and then Prepare to enter in the Trade with confidence and you must know you can repeat that profit trade again n again because you know what you are doing in market and you know where to Exit . I really love to do Grid , hedge and martingale in Demo trading , its really Fun . very very attractive .
Please use this link to see actual trading success:- forextrading-alerts.com/ where traders are trading over $10 million using real money using those concepts earning over 13% per month
Hello from Malta :) I am trading for almost 2 years but still can't understand how to use grid trading properly :) Thank you for sharing your knowledge with us.
yeah but the problem comes when it goes against you buying and buying lots then it is when it keeps you each time far from your break even point, making you wait days or even weeks until it gets back to the delta
Thus, it will keep buy and buy EURO's that i can use in the store. Or buying and buying the petro-dollar that is concidered a safe haven. OMG, the horror !!! (Gametheory is a thing, maybe learn that first before trying to trade. Would come handy with your descision taking)
Sorry I didn't quite understand the part how do you exit all the trades to finalise your profit if it keeps activate buy&sell order when it hits the nxt grid? Aren't they will always be opened trades on the losses side if you didn't set SLs but only TPs? Just how much funding you need to keeps all these open trades.
This proves the old rule: Money won in the casino is borrowed, not won. This is also the case of insuring against an unlikely hurricane, and clipping premiums. Here the hurricane is the market exploding and going one way, jumping over several grid points at once, and you cannot get in or out. Then you lose massively all the previous gains.
I think this strategy can be summarized as follows: have 2 accounts, one long and one short, both on the same instrument. Long account will increase position size for each lower grid line touched. Short account will increase position size for each higher grid line touched. No need to buy, sell, then re- buy (or sell, buy, then re-sell), which will just incur spread costs. I'll have to numerically simulate this, but my guess is periodically all positions in both accounts will need to be liquidated, and then the accounts can be re-balanced to the same equity level, and the process can start again. We'll see...
I did Monte Carlo testing on this. There is no simulation that does not end up blowing up the account as the number of trades tends to infinity. My setup was unlimited short and long entries, however.
Wow. I had come up with a strategy where if it goes up you sell and if it goes down you buy. Literal buy low sell high strat. It is profitable over history but you only realize that if the price reverts back to neutral ever. This way if you go on a tear in 1 direction at least you can scalp all the way in that direction and then liquidate on only a small reversal for an overall profit.
8:48 I am clear about the concept and the procedure, but not the explanation of figures on the graphical distribution of this moment. I am looking around and in this specific currency pair (EUR / USD) the difference between price lines does not correspond with the 100 pips. Perhaps it is just my impression or just an example that the gentleman offers. Although I also see that what could fit, from my perspective, is that he is referring to pipos. Between the lines I think there is a difference of approximately 35 pips (350 pipos). I do not know if there is any term in English for this that I comment (pipos). Here in Spain it is known as the minimum amount that the price of a currency can vary. That referring to this case is the fifth decimal .. Example, a pipo is the tenth of a pip. That's why I say 35 pips is 350 pipos As I say, maybe I am missing some data and make mistakes because of that. =) Or it's a mental scratch of mine and it doesn't really even matter. XD Sorry if it is a stupid thing
Buy and sell at starting point means: you are at net 0 position regardless of whether the market moves ( up or down) you will still be at 0 position. So, at the first level you will cash in Nothing, no matter which way. .... This strategy seems rather silly to me. Am I missing something ?
@@Expert4x True, I have not tried, nonetheless the fact that I have not tried it does not disprove my point. Let me give you another example. Say you long 50k USD/JPY and short USD/JPY in another account that you also own. Using steps of 200pips, after USD/JPY moves up 200 pips. you suggest to sell the long 50k of USD/CAD to profit 200pips, and to shortl another 50k and long another 50k. At this point you are net 50k long and 100k short.... if it keeps going up, you are net 50k short.... Makes no sense to me. What Am I missing ?
Dear Sir, Yes, the strategy seems silly, BUT on second thought, it DOES WORK WELL well on underlines that have a tendency to retrace. Many thanks for making me reflect. The strategy has merit ! @@Expert4x
In my experience, which i have a lot of, grid trading isnt a bad technique in it self but is no way an automation or a buy and hold strategy. You still have to be relatively accurate about reactive levels and keep options spreads in the forefront to understand current volatility, which is the only indicator you can use to space the grid and knowing when to tp or take a loss.
ADR would include those news spikes and so on to average. Using that to calculate grid gap is an issue right ? i.e if you are going to use EA in consolidating market on no news events then the gaps should not include news range correct ?
The strategy holds SOME truth - but I personally would just day trade daily pivots and swing trade monthly pivots: trading pivots and following basic support and resistance is the win-win strategy I personally employ!
Yes - grid trading is a random strategy that requires NO supervision (Set and Forget) - Day trading take considerable experience and skill if you have that.
Its amazing i was just trying to make a similar strategy last week and i now chanced upon fhis video. This excites me. Need to study this in mire detail.
I think the issue is in the 2 Level, because we are facing 2 scnérios: Scenario 1: the price goes down and we have to get the sell order open scenario 2: the price gors up an d we have to close the selle order how to be sure about getting open or sell the sell order ?
I tried this 15 years ago with moving averages and their crossings as a EA. It works for a while, but markets can stay very high or low for a long long ime and you will end up paying interest on the far open orders. The only way to mitigate this, is to trade only in the broad value area and increase your lot size during the process. However things happen and the swiss FED and it's franc dropped the peg and fell a HUGE amount in one day blowing up some people/market makers about 12 years ago!
@@Expert4x Thanks for your reply. I will try this strategy in coming days in Index options. I appreciate your dedication and respecting everyones queries and answering them even after long time of posting video!❤
really unable to find why we are doing the opposite trade on each level. We can simply sell on each higher level and buy on each lower level. Please explain. Net effect is same. and we are paying brokerage also in that process.
Alex, I tried to go to your website but links to your products block me. It says this content not available in my country. I'm in Australia. Can you give me access?
Hello, good idea. The problem is when we have a strong trande. For example in this video i see 40 pips grid. What s happen if continue to go in loss at the 3rd intent? Thank you
The thing that we need to think about carefully is how much money we have, because if it goes up or down fastly we will need more margin in order to continue buy&sell, which technique you use for this problem?
Ive written a few bots now and honestly, this is going to loose you alot of money in markets that establish new averages or dont reverse trends.. I dont see which markets in todays world will provide this type of stability.. might be profitable short term but please people this is crazy risky.. If anything your best bet is to do this on for 1 hour a day on 5 minute charts, and try and study when that best hour is on average
Currently working on a Grid System. I Turned my back on entry point determination, stop loss calculations and over-analyzing. Turnes out a good hedging strategy and position size adjustemts are the way to go for me.
Indeed. I'm still experimenting but Backtesting seems promising so far. Any tips on how to mitigate drawbacks? As of now I just close all losing positions and forbid opening new positions when the price leaves the range until a new one is established. Am I onto something there or is there a better way? I'm still experimenting with different indicators to determine a range. Any thoughts on that? Any specific indicator I should look into? Thanks for taking the time. It's appreciated, really.
@@kaziahsan_habib the grid system? nah not really but it's superb to benchmark some technical approaches and hedging strategies. The grid itself just spits out 50/50
I tested with 2 binance bot in futures with 2 accounts, same parameters in each grid, one short, one long, 20x leverage. The problem there is the bot which "LOSS" loss MORE than the one which WIN - And the result is NEGATIVE, there is where is the problem... Do you think is the LEVERAGE the problem?
@@Expert4x I have x20 MAX for the moment and I did with this setting. I will try with LYKKE - a 0 taxes fee EXCHANGE, I'm continuing to make the simulator in EXCEL.
second example you are in 0 profit because in first sell you made -200 in second sell -100 in third sell 0 and fourth +100 this means overall profit with sell positions is -200 and with buy positions +200 because you made 3x+100 and one -100.
What do you do with trades where the price "never" returns to that grid level? Is there a certain limit where you just let a stop take it out? Even on very sideways currencies like USDCHF, there are price levels that can go years without being touched again.
@Expert4x But every currency has that potential. Again, even looking at USDCHF as an example, which, with the exception of one spike, has traded between the same range for the past 11 years, used to be in a wild decline for much of its history. It will probably never return to many of those levels. Also even within the current channel that it's trading, you have highs/lows in Jan '15, Dec '16, and Jan '21 that have yet to be touched again. Positions opened during those times would still be open, all with significant drawdown. It seems to me like you'd have to have some rule in place that says once a trade has reached X level of drawdown, just cut it. Otherwise there is no way to ensure those positions won't end up bleeding your equity into a margin call.
Price doesnt necessarily have to return to a certain grid level for to make profit...it jus has to range enough in a way that your accumulated profit surpasses your your equity drawdown
@@nyashachuma4567 exactly, but that requires cutting your losses before your drawdown exceeds those profits. Eventuality your drawdown will grow so large it doesn't make sense to continue holding it. Even if it doesn't eclipse your accumulated profit, it will eat into it unnecessarily. So again, my point is there comes a point where cutting losses makes sense. High win-rate strategies aren't all they're hyped up to be. You can make significantly more money winning just 40% of the time (for example) if you know when to cut your losses and let your winners run.
In case price goes up to next grid level, Cashin buy, followed by open buy and sell. But that means, if price goes up to next grid level up, open another sell. Closing and reopening the buy (again in case going up) only serves the %age winning trades, but does not help the end result.
It's confusing because your model doesn't work. There are several math problems here. The first is a buy and sell at each level has a zero sum for fungible derivatives. Even if you had an asset for which this were not the case, you can't "cash out" a buy with a sell and not open ANOTHER sell at the same level. What appears to be happening is you're NOT opening a 3rd trade when you "cash one out", therefore the next time price hits that level you THINK you're "cashing out" a trade but in reality you just double counted. Maybe you can provide account balance before and after to show how this is profitable? For example in your "power move," the price goes up to grid 3 (+2) then down one level which you count as (+1) for the sell on level 3. But this sell was just attributed to cashing out a buy. So unless you opened two sells on level 3, you can't take a profit. Here's the mathematical proof: Profits = (sum buys) - (sum sells) One buy and sell at every level = 0 3 trades at every level will get you the +1 from your first trade but then 0.
Sir, When you reach A new level if there is already A SHORT POSITION OPEN AT THAT LEVEL ALREADY, DO YOU OMIT ADDING NEW SHORT AT THIS LEVEL? --and open ONLY A NEW LONG AT THIS LEVEL? DO YOU TAKE INTO CONSIDERATION DAILY ATR/WEEKLY ATR?--otherwise there would be tons of open positions & account would blow up?--and thank you.
Nice idea. Just wonder,how many loosing trades until you consider to prune some of them? Since the probability of the price keep moving in one direction limitlessly. Thank you in advance.
Doesn’t work for brokerages where sell orders and sell short orders are different. Example 1 would be a wash trade with zero profit and would only work for markets trending in a single direction.
Yes it will - that is why currency selection and gap sizing is critical. The EURGBP has small volatility and does not trend out of control - for instance. If you use the GBPJPY you will be killed.
@@Expert4x It doesn't matter what preparations you chose, it is impossible to say the market can not trend enough to wipe me out when you are opening more trades than you close. Even in the example you have shown us, you never explained how to exit the trade without taking a loss, because you claimed to be net positive without accounting for the new trades opened 🤔
Change your lot size with every position you open that is the only way this will work.Remember January to december there will be one high and one low so set your position accordingly.
Don't use Pending Orders. At one point the brokers will happily not trigger one of your orders and you're in a bigger loss. Use EA if possible and set it as instant orders for both buy and sell.
Hanzz z, thank very much for your interest in our products. For more information about our products, how they work and how to purchase them please use this link. www.expert4x.com/expert4x-products/ If you like to have a look at our free Forex trading tools please watch this video th-cam.com/video/h-6NkfWc1O8/w-d-xo.html All the Best Hanzz z - Alex
I thought about the same strategy but I don't think most brokers allow holding long and short position at the same time--may be for forex but not for stocks. Could you tell the broker which you use?
@@Expert4x Could you kindly mention which broker do you use. Problem with Forex brokers these days is many of them have turned out to be fraud even with regulations --problem of stopping withdrawl of money to bank account is pretty common..
Only if one knew clearly the boundaries of the market, it will work the best. However market would punish you soon on a single buying higher and a single selling lower. .
Thanks a lot Sir for sharing...very useful and valuable...I am new to forex...need your advise whether other forex grid robot also able to set buy and sell on the same grid line, or is it only GTM bot able to do exactly as you are sharing here or any bot supporting grid able to do it as well..Thanks for sharing
I have been trying many variations of this system. Can you please explain how you account for swap fees? Because no matter what i try the swap fees just eat so much profit
@@Expert4x Hi! I have created a similar strategy myself for trading stocks. It's different in many aspects but I think it relies on the same concepts. I made a few videos about it. I would like your thoughts on it. Cheers!
My problem with the strategy is that when the trend goes one way and then all the reverse orders accumulate until i get stopped out. How do I handle this scenario?
This is the downfall of this strategy. You never lose a trade until the one day you lose your entire account. Try the opposite. Close when the price goes against you and let your winners run
@@Expert4x I have to respectfully disagree. I think the concept is flawed. You can position your size down to a penny but your profits will shrink and all you're doing is delaying the inevitable.
Thanks for the presenttation! I missed though (perhaps it's in other video), what can go wrong and how to fix it. For example what happens when price leaves the lower end of the grid and leaves you holding all the buys at higher prices. ¿🤷♂️? Whit is th way out without incurring on losses when the price stays low for ages?
@@Expert4x Is it not possible to average out buys or sells and take profit on next grid level? This way it will never leave a trade open forever. Or you can tell me how the trade will be handled by GTM when it does not hit the next grid level as a positive trade?
one thing u will take 2 deals in one grid when 1 is going up and when it tends to retrace cut 1st one and sell 2nd one and when It touches the Istanbul trade area cut the 2nd one and the candle gives you a signaled for up ward take 3rd trade for buy even for the start or till the end of the 2nd grid
One more question please! When you looked at the end of the 79 Trades, you mentioned the losses as -100,-200,-300, etc. But wouldn’t the losses be in an uptrend for example: (1) -100 (1Sell) (2) -200+-100 (3) -300+-200+-100 Since you’re adding Sell with each step? Its not just the one Sell that is causing loss, but the new ones as well right?
Husam makes a good point. When you say "cash out", you're not specifying whether you are making, technically, 3 trades at each level AFTER the first one, which must be the case otherwise you're quickly hitting levels where there is nothing to "cash out" because you didn't open a new trade, all you're doing is double-counting. Husam's math is correct assuming you're opening new trades AND "cashing out" (e.g. there must be 3 trades at each level). I don't see how this can work.
Losers are left open , so in the end only the last couple of 5,6 orders did not hit their profit targets. The most important thing here is that this strategy wont work in strong up or down trend. You need sideways market.
Grid is good for ranging markets but i am a little stuck here i drawn this on a peace of paper and I come up with plus minus zero for every open position we have a close but also an open unless we dont open a sell and a buy for every grid target.. did I missunderstand this?
Thank you for taking the time to share your experience with the grid strategy. It's always valuable to hear different perspectives and insights. Keep up the great work and keep learning - you're on the right track!
@Expert4x But what are with the losses? I mean The balance will be in profit I agree. But if I close all trades which are still open and in drawdown then the system won't be profitable. The Equity is almost everytime in drawdown.
In addition your calculation is wrong. You open all the time buys and sells. In the end you deduct $2100 but this is only one trade of 20! So the equity is way more in drawdown. Or am I missing something? @@Expert4x
if we buy and sell orders, if the market occurs in a long upward trend until the price does not return, what will happen to all of our sell orders brother...? Thanks
the problem is that the market needs to go up and down regulary around the same point, if the market goes up and it stays up until eternity then you have a huge problem.
If you automate this you'll reach a point where you have zero free margin available and hence you will not be able to enter new trades, I really think one can do better. Utilize this system only if the market goes against your strategy, but using a strategy is important to place the odds in your favor.
You do realise that you don't need to both buy and sell at the start, simply if it moves up to the next grid line you're taken in with an order you had placed, a sell only and if it moves down to the lower grid line you're taken in with a buy order. In fact you make more because you're paying less commission on spread. It's easier to market it this way and sell automated systems because people think it's a hedge system. Anyone with any understanding of markets would have realised that. For anyone trading this, be aware you shouldn't trade it on every pair and the best way to decide your grid size and entry price should be based on the pairs recent fib retracement and fib extensions. If you understand this type of trading it's a consistent money maker. No EA needed
Yes I do. It makes it easier for new traders to understand the concepts in this introduction video. There are 40 other in the playlist. yes - currency volatility is critical.
I still dont understand about 1st example Buy sell going up 1 grid and open buysell again, then going down 1 grid B/S up 1 grid it's mean B +1 S -1 right? N go down 1 grid B -1 S+1 Its that breakevent? Why we have gain 1?
One of those things when you look at it you say to yourself, "now that will work." If using the newest version it appears we have to use a particular broker - we can't use TD Ameritrade or some other broker? Can we use the GTM on a Mac rather than a PC? I heard you say in one of your videos that you teach how to do it manually - that would appear to be setting up buys and sells every how many pips? Lastly, if the market quickly moves or down in a big way beyond your grids, which my experience in the Forex has rendered many times (EUR/USD), this would appear to be a problem? Are there any other major downfalls to consider?
I've been doing manual grid trades for months on Binance (they don't offer the service), and third-party programs cost as much as $100/month which will kill your profits if you have low initial capital. Your grid size is at your own discretion, but typically 0.5-1.5% profit take is acceptable and frequent. For example, I've been grid trading ADA which is currently ranging from 80 cents to $1.25. I have about 50 grids (used to have 100) with a 1-penny difference (aka, buy at $0.80, $0.81, etc all the way up). My profit take at the lower price range is about 1 penny, and 2 pennies after about $1.10). If you're recycling your profits and making your grid size bigger over time, then first focus on increasing the grids closest to current market price range. As a disclaimer, it can be time-consuming to do it manually because you have to set alarms for price movements to set new grids after orders are completed, but once you have enough capital, you can either find an exchange that offers grid trading or buy a third-party bot as long as it doesn't cut into your profits too much.
Thank you for this video! I have used grid trading with bots, and had some success. But I still needed to learn more about their usage as when the market left the defined range I lost the aforementioned success. I realize you’re not using bots but regardless i appreciate learning more and seeing a person doing it! Cheers 🎉.
Nice theory maybe works for big firms that have no variable spread and no broker commission/fees. It could work to certain extend but add broker fee and spread to it and it will be very difficult. I will run the math on it but I can tell when you add broker fee to the mix it all falls apart. let's say you have two transaction and one is up 100 and another is down 100, you are saying if you close both them then they cancel each others but no they don't because you will lose broker fees on each one. so scale this to more and more transactions and you will be losing and your loss will accumulate very quickly. Anyway it is a nice video and basically this is a hedging strategy but one that I don't think it could work all the time.
This is a strategy that has been introduced previously. If it has been used by us for over 20 years. Trying to do a mental evaluation does not work well - you need to trade it using a non-trending and low-volatility currency to experience the power of this is strategy using a pruning approach - this video is only a high-level introduction.
I`ve built an EA like this over ten years ago and when the market explodes to one direction (and it will), you end up stuck with dozens of opened orders forever waiting for the pull back. This kind of strategy only works if you set a limit where you get out no matter what. Spread and execution problems (yea kids, forget about your demo/illusion account) make things even harder. But despite all that I like grid strategies.
Yes you are right. I have been trading it for 14 years now - you need trading skills to read the market and select the right currencies and spread your risk trading a balanced portfolio of currencies and different settings
Or a market the always goes up in the long term ...can you think of any? And only go long
A market going up isn't a failed bot you made money... A bot going down too far should have a stop loss set. Not that difficult. Grid bots aren't something you want to run forever. It's a strategic tool for certain market conditions
@@Expert4x I was expecting you to mention it in the video (how to deal with breakouts). Months of successful deals (and in most cases the whole accounts) are constantly being erased by strong trends. It is typically just one major news, that happens when market is active, but you are asleep. I understand that reading the market is a whole different subject, but could you please explain how do you set your stop loss for the occasion when the pair breaks out of your range if you do actually use any.
All trending markets have pullbacks. That's when you should liquidate all positions.
I.e., let's say the market is trending bullish and you hit (5) back-to-back grid points to the upside without retracement. You now have 5 longs that made 100 pips each, but also have 5 shorts dangling with unrealized loss. As soon as you get a pullback down one grid, you just liquidate everything. Your last (6th) buy will break even with the last (6th) sell, your 5th sell will break even, and so you end up closing 5 buys in the money and 4 sells out of the money. You still net +100 pips (or whatever the grid size is), minus the overnight charges for intraday trading. Not super profitable, but you clear the table with a small profit.
So you could program the EA to stop amassing new positions if you have 5 straight moves to the upside (or downside). Or for however many in a row you think is reasonable, adjusting your position sizing accordingly.
Granted, there's still risk of continued move without retracement, so you have to study the pair to see how many grid points it can cover on a strong move without retracements. Probably should avoid volatile pairs like GBP/JPY, or USD/SEK, etc.
If the pair has a retracement 9/10 times within (x) number of grids in strongly trending market, set up an ejection stop loss. That is, liquidate everything on the n-th consecutive move with equal buy/sell ratio, your only loss is overnight charges.
If this happens rarely enough, you'll still be ahead. Wait until the market calms its tïtties down and runs out of steam for the trend, then jump in the game again to profit in the ranging market.
The maths for this only works if the market reverses within 2 grids - if it continues in athe same direction for 3 or more grids the open trades outweigh the cash ins
Are you sure? 18 years of trading this technique does not seem to confirm your experience
@@Expert4x 18, or 14?
I start to think those who are profitable in the market are the ones who pick 2 sides of the coin systematically, rather than analyzing how the gravity and the wind turbulence would affect the spinning coin in the air to predict which side of the coin will occur on the table
Creating order out of random chaos can be very tricky and requires a special psychology
Am also seeing that now....its the only way...the conventional ways of trading dont work anymore ...the market is just random
I have saved your " quote "!
Wonderfully said!
Grid trading is a textbook example of a martingale trading strategy. This means, that the strategy increases risk and leverage with increasing losses (unless a stop-loss has been hit). It’s similar in nature to the well-known example of the roulette betting strategy - always bet on one color and if you lose, double up your bet until you win again (or until you get broke).
in the long run this will blow up your account, all it takes is a market change with big highs or lows and you're screwed.
If it really works well, just show a week of "live" trading with this system.
This is only an introduction to basic grid trading. No, it is not Martingale at all due to the wavey nature of the market - there are some variables that give traders risk control such as the variable and dynamic gap sizing, portfolio hedging, low volatility currency selection, and variable position sizing, one-directional trading etc. This EA has been around for more than 10 years so have become very sophisticated.
@@Expert4x Hi, If it is true it performed well over 10 year please show me any MT4 backtest lasting 10 years on any pairs you like more.
I think that adding more and more positions opened without a stop loss, at first big unpredictable market move, you blow up your account.
You constantly increase you exposition to the market, leaving less and less space to open new trades.
And now or late, it will arrive a moment where you get stuck with 200-300 opened positions, and you won't be able to open more, even if the floating balance is not loosing too much, because of the missing margin. Game over!
The more the opened trades, the more the probability that a short move in the wrong direction can lead to a big loss and a margin call.
Am I wrong?
How much % do you risk on any single order? 0.1%?
What does happen when the price swings around a buy/sell level? You would be constantly opening and closing position, every time loosing the spread...right?
Thanks.
@@Expert4x It won't work and the plain fact you promote it and persist it works, is proof you're NOT a real trader. Real traders KNOW it doesn't work. You're just another charlatan full of BS.
All those years I thought this was a scam, never considered as a serious strategy. But if you know what you do, this really works like a charm.
Thanks. Your perspective is always based on your personal experience. Results vary - often traders blow accounts with exactly the same strategy that makes other traders very rich. Same Strategy.
Wake up every morning with the idea that something wonderful is possible today.
Great advice
How do you enter a buy and sell simultaneously without them cancelling each other out? ?
Most brokers allow that - don't use US brokers where hedging is not allowed
Your broker allow u to open Buy and Sell at the same time?
Most brokers do - US Brokers don't
Major flaw in this strategy is to decide when not to close the position and wait till it is back to the original grid level to have breakeven. That decision is the only profit-making point rest all is a zero-sum game. Either we can keep on waiting till the desired breakeven is achieved or it may never be achieved so book loss.
It is a 100% automated system - you do not have to make decisions
How automated system can decide when to close or when to remain open? If system can predict future price move then making millions is a piece of cake.
When you hedge a position when you do you close a losing position? Getting this concept is really important to my work. I'm a grid trader but really dont understand the money method implemented starting at point 1:54 in regards to losing position. I understand the hedging position at a buy and sell starting at a level, closing when a winning position level is reached but when do you close the losing position? Wouldn't the account up in account balance but you'd always have a loser running? Really trying to understand what happened to losing trade and when to close the trade in drawdown. Some insight here would be helpful.
You only close a losing position when all the open trades in total are positive
@@Expert4x Thanks for the quick reply. I think I got it. So essentially when 2 have positive positions in any one direction. The first is a hedge. The second is opened at the second level (only in the same direction) and the third level is the close for three in a row. 2 in the positive profit. 1 in drawdown. Worst case scenario you’re looking at a range of three open positions and the forth you’ll make profit on it. Repeat. Thank you. This is really useful.
@@J.shtracy i didnt understand this, can you please explain it more??? thanks
i couldn't understand why you are buying and selling at the same time; what is the advantage of doing that since you are just looking for reversal to make money ???
Yes trying to work it out in your mind will drive you crazy
On lateral markets it works nice... Once markets spikes and keep the tendency you start to accumulate opened positions and things get nasty. Maybe if you only open the trades into one direction you would reduce your risk by half.
Which direction would you choose - and if you are so good at choosing direction you would be a millionaire
If you open both a buy and sell position at the same grid levels, you would have a bunch of winning trades that are cashed out and a bunch of losing open trades. You could just close all the losing trades if you want and come out break even.
@@aldenasher8 and you also have spread and transaction costs, you can't break even. You need to have margin to keep those losing trades opened or you gonna keep losing on spread.
I have a couple of questions. I use the grid system too but I use Think or swim which the daily chart always starts at the same time. In other words, say, at 6:pm the chart will start over. I use the high and low of that 24 hour period to build my grid. I use that start and my script will calculate the high and low for that 24 hour period then devide that up into a grid starting at 0 for the low and 100 for the high and that is divided into quarters like 0, 25, 50, 75 and 100% lines. It works great knowing that yesterdays prices control what prices will do today. I do the same with fib levels based on yesterdays high and low.
Very good. Grid trading has many, many variations. This video is merely an inrtroduction to the concept.
Hi, I understand that you use previous day's high and low with 0 at the low. What do you do with the 6 pm start? I am not clear. Also, when you use grid with qtrs starting at low, do you follow the same logic of 1 buy and 1 sell at zero? or just buy only at zero and above and sell only below O.
@@orkayen On my charts, the new day starts at midnight central time. That is where all of the indicators reset. The software will draw all of the lines on the chart and label them. I use two monitors, one with fib levels and the other the previous days range, labeled 0 to 200 and 0 to -200. I can change these nimbers if the days range is to large. It can really cramp the chart andd make it messy. I can send you some photo's if you will give me your messenger or another way to send the photo's to you.
@@orkayen Its better if you have two monitors so you can have the previous days range on one monitor and fibs on the other monitor. Sometimes price will stop on one of the previous days numbers and other times they will stop on one of the previous days fib levels. I have custom indicators that I wrote that are very accurate too.
Thanks. My question is on the orders. Do you enter both long and short at each grid levels? when do you enter the first trade? at the 6 pm open? or at the low?
Grid , hedging , martingale all are shortcuts of Trading profits , these are not true knowledge this is all "try it may be it work for you" , true knowledge is Understand the Market and then Prepare to enter in the Trade with confidence and you must know you can repeat that profit trade again n again because you know what you are doing in market and you know where to Exit .
I really love to do Grid , hedge and martingale in Demo trading , its really Fun . very very attractive .
Please use this link to see actual trading success:- forextrading-alerts.com/ where traders are trading over $10 million using real money using those concepts earning over 13% per month
Hello from Malta :)
I am trading for almost 2 years but still can't understand how to use grid trading properly :)
Thank you for sharing your knowledge with us.
My pleasure!
I didn't understand when we close the orders? After one level if it is a win? And what about a loosing order?
Simple - at grid levels close profitable trades and leave negative ones open
yeah but the problem comes when it goes against you buying and buying lots then it is when it keeps you each time far from your break even point, making you wait days or even weeks until it gets back to the delta
It never needs to come back to delta - sadly, that is the point you are missing
Thus, it will keep buy and buy EURO's that i can use in the store.
Or buying and buying the petro-dollar that is concidered a safe haven.
OMG, the horror !!!
(Gametheory is a thing, maybe learn that first before trying to trade. Would come handy with your descision taking)
Sorry I didn't quite understand the part how do you exit all the trades to finalise your profit if it keeps activate buy&sell order when it hits the nxt grid?
Aren't they will always be opened trades on the losses side if you didn't set SLs but only TPs? Just how much funding you need to keeps all these open trades.
The best thing you can do is trade the system - that way you will understand it.
This proves the old rule: Money won in the casino is borrowed, not won. This is also the case of insuring against an unlikely hurricane, and clipping premiums. Here the hurricane is the market exploding and going one way, jumping over several grid points at once, and you cannot get in or out. Then you lose massively all the previous gains.
Yes that is typical result if you are not skilled and use random currencies.
I Trade with this idea manually... Great Results... Thanks Plooy Sir
You are welcome
how do you do it manually?
Hello
Hello veerji reply kro
Please veerji
I think this strategy can be summarized as follows: have 2 accounts, one long and one short, both on the same instrument. Long account will increase position size for each lower grid line touched. Short account will increase position size for each higher grid line touched. No need to buy, sell, then re- buy (or sell, buy, then re-sell), which will just incur spread costs. I'll have to numerically simulate this, but my guess is periodically all positions in both accounts will need to be liquidated, and then the accounts can be re-balanced to the same equity level, and the process can start again. We'll see...
Sounds like Martingale
I did Monte Carlo testing on this. There is no simulation that does not end up blowing up the account as the number of trades tends to infinity. My setup was unlimited short and long entries, however.
If you close for profit on let’s say a Long position, when do you go Long again?
Long and short again. You should always make a gain no matter which way the market moves
Wow. I had come up with a strategy where if it goes up you sell and if it goes down you buy. Literal buy low sell high strat. It is profitable over history but you only realize that if the price reverts back to neutral ever. This way if you go on a tear in 1 direction at least you can scalp all the way in that direction and then liquidate on only a small reversal for an overall profit.
Sounds great
8:48 I am clear about the concept and the procedure, but not the explanation of figures on the graphical distribution of this moment. I am looking around and in this specific currency pair (EUR / USD) the difference between price lines does not correspond with the 100 pips. Perhaps it is just my impression or just an example that the gentleman offers. Although I also see that what could fit, from my perspective, is that he is referring to pipos. Between the lines I think there is a difference of approximately 35 pips (350 pipos). I do not know if there is any term in English for this that I comment (pipos). Here in Spain it is known as the minimum amount that the price of a currency can vary. That referring to this case is the fifth decimal .. Example, a pipo is the tenth of a pip.
That's why I say 35 pips is 350 pipos As I say, maybe I am missing some data and make mistakes because of that. =)
Or it's a mental scratch of mine and it doesn't really even matter. XD
Sorry if it is a stupid thing
As long as you understand the concepts the details in the video are not that important
@@Expert4x You are right. Thank you very much sir for the knowledge.
Buy and sell at starting point means: you are at net 0 position regardless of whether the market moves ( up or down) you will still be at 0 position. So, at the first level you will cash in Nothing, no matter which way. .... This strategy seems rather silly to me. Am I missing something ?
Yes - You have not tried it
@@Expert4x True, I have not tried, nonetheless the fact that I have not tried it does not disprove my point. Let me give you another example. Say you long 50k USD/JPY and short USD/JPY in another account that you also own. Using steps of 200pips, after USD/JPY moves up 200 pips. you suggest to sell the long 50k of USD/CAD to profit 200pips, and to shortl another 50k and long another 50k. At this point you are net 50k long and 100k short.... if it keeps going up, you are net 50k short.... Makes no sense to me. What Am I missing ?
Dear Sir, Yes, the strategy seems silly, BUT on second thought, it DOES WORK WELL well on underlines that have a tendency to retrace. Many thanks for making me reflect. The strategy has merit ! @@Expert4x
Hi How can i buy this buy this bot. I am in australia and dont know ant thing about programming.
Thanks
Hi Unfortunately it is not for sale to Australians
@@Expert4x Which countries allow it? Any African country? just curious. Thanks
In my experience, which i have a lot of, grid trading isnt a bad technique in it self but is no way an automation or a buy and hold strategy. You still have to be relatively accurate about reactive levels and keep options spreads in the forefront to understand current volatility, which is the only indicator you can use to space the grid and knowing when to tp or take a loss.
Yes you are right
How do you trade both open and short positions on the same ticker
Broker allow that - but not US brokers
ADR would include those news spikes and so on to average. Using that to calculate grid gap is an issue right ? i.e if you are going to use EA in consolidating market on no news events then the gaps should not include news range correct ?
You need to experiment with that - this is a random market EA
Con que agarres una tendencia alcista o bajista quemas la cuenta
Not if you are a clever Trader that uses big and increasing gap sizes and non trending currencies
How would you calculate the right grid size for SPY?
Start with 50% of the Daily Range
@@Expert4x the 5 day atr is around 5.00.
So if SPY 5 day ATR is 5.00 use a 2.50 grid level?
The strategy holds SOME truth - but I personally would just day trade daily pivots and swing trade monthly pivots: trading pivots and following basic support and resistance is the win-win strategy I personally employ!
Yes - grid trading is a random strategy that requires NO supervision (Set and Forget) - Day trading take considerable experience and skill if you have that.
Can one open a trailing stop loss when your buy/sell order is yet to execute ie your order is yet to enter position.
Trailing stops are not used
Its amazing i was just trying to make a similar strategy last week and i now chanced upon fhis video. This excites me. Need to study this in mire detail.
You got this!
This strategy is best for none-leverage without Overnight swap fees. Just buy and place sell limits or sell stops at upper grid interval.
makes money even with those limitations
I think the issue is in the 2 Level, because we are facing 2 scnérios:
Scenario 1: the price goes down and we have to get the sell order open
scenario 2: the price gors up an d we have to close the selle order
how to be sure about getting open or sell the sell order ?
Don't worry the Robot will do that
I tried this 15 years ago with moving averages and their crossings as a EA. It works for a while, but markets can stay very high or low for a long long ime and you will end up paying interest on the far open orders. The only way to mitigate this, is to trade only in the broad value area and increase your lot size during the process.
However things happen and the swiss FED and it's franc dropped the peg and fell a HUGE amount in one day blowing up some people/market makers about 12 years ago!
Yes this is the most basic system to introduce Grid trading. Grid size and lot size variations are added next
Just as question i will be happy to receive answer!
Why grid level trade always made loss in the first place?
What make you think that?
Great video! Explained clearly. One question can we use this for options trading? Thanks
Yes, absolutely
@@Expert4x Thanks for your reply. I will try this strategy in coming days in Index options. I appreciate your dedication and respecting everyones queries and answering them even after long time of posting video!❤
really unable to find why we are doing the opposite trade on each level. We can simply sell on each higher level and buy on each lower level. Please explain. Net effect is same. and we are paying brokerage also in that process.
The idea is to have a positive trade no matter where the price moves - you method does not generate positive trades for every move inn the market
@@Expert4x Thanks for the answer, but the net result is the same. Please try it using an example.
@@Expert4x And can you please suggest where shall we have the Stop loss.
wondering if this EA is available for demo accounts for testing.
Unfortunately we do not have demo versions
Alex, I tried to go to your website but links to your products block me. It says this content not available in my country. I'm in Australia. Can you give me access?
You will need a VPS to access our websites if you are from Australia
Hello, good idea. The problem is when we have a strong trande. For example in this video i see 40 pips grid. What s happen if continue to go in loss at the 3rd intent? Thank you
Yes currency selection and grid sizing is very important
The thing that we need to think about carefully is how much money we have, because if it goes up or down fastly we will need more margin in order to continue buy&sell, which technique you use for this problem?
True, Currency selection a gap sizing is important too
@@Expert4x Thank you so much :)
When you buy and sell at the same grid line, wouldn't it get squared off?
Yes if those are your only trades
What execution is used buy stop sell limit sell stop buy limit witch one
The EA knows when to transact using price levels - the EA does no use stops or targets.
Ive written a few bots now and honestly, this is going to loose you alot of money in markets that establish new averages or dont reverse trends.. I dont see which markets in todays world will provide this type of stability..
might be profitable short term but please people this is crazy risky.. If anything your best bet is to do this on for 1 hour a day on 5 minute charts, and try and study when that best hour is on average
This Robot is over 8 years old - it trades beautifully if you know how to trade it with respect to the market
Currently working on a Grid System. I Turned my back on entry point determination, stop loss calculations and over-analyzing. Turnes out a good hedging strategy and position size adjustemts are the way to go for me.
Yes it is much more relaxing
Indeed. I'm still experimenting but Backtesting seems promising so far. Any tips on how to mitigate drawbacks? As of now I just close all losing positions and forbid opening new positions when the price leaves the range until a new one is established. Am I onto something there or is there a better way? I'm still experimenting with different indicators to determine a range. Any thoughts on that? Any specific indicator I should look into? Thanks for taking the time. It's appreciated, really.
@@dertyp3463can tou share it with me ?
Bro...Whats the condition now??? Is it still profitable
@@kaziahsan_habib the grid system? nah not really but it's superb to benchmark some technical approaches and hedging strategies. The grid itself just spits out 50/50
I tested with 2 binance bot in futures with 2 accounts, same parameters in each grid, one short, one long, 20x leverage. The problem there is the bot which "LOSS" loss MORE than the one which WIN - And the result is NEGATIVE, there is where is the problem... Do you think is the LEVERAGE the problem?
Could be - try the highest leverage you can find
@@Expert4x I have x20 MAX for the moment and I did with this setting. I will try with LYKKE - a 0 taxes fee EXCHANGE, I'm continuing to make the simulator in EXCEL.
second example you are in 0 profit because in first sell you made -200 in second sell -100 in third sell 0 and fourth +100 this means overall profit with sell positions is -200 and with buy positions +200 because you made 3x+100 and one -100.
You missed the point. Please re-watch the video and make sure you understand the rules
Which currency do you recommend on this one?
Currencies that tend to trade sideways are good
What do you do with trades where the price "never" returns to that grid level? Is there a certain limit where you just let a stop take it out? Even on very sideways currencies like USDCHF, there are price levels that can go years without being touched again.
You don't select currencies that have that potential
@Expert4x But every currency has that potential. Again, even looking at USDCHF as an example, which, with the exception of one spike, has traded between the same range for the past 11 years, used to be in a wild decline for much of its history. It will probably never return to many of those levels. Also even within the current channel that it's trading, you have highs/lows in Jan '15, Dec '16, and Jan '21 that have yet to be touched again. Positions opened during those times would still be open, all with significant drawdown. It seems to me like you'd have to have some rule in place that says once a trade has reached X level of drawdown, just cut it. Otherwise there is no way to ensure those positions won't end up bleeding your equity into a margin call.
@@vascobroma8907 You're absolutely right
Price doesnt necessarily have to return to a certain grid level for to make profit...it jus has to range enough in a way that your accumulated profit surpasses your your equity drawdown
@@nyashachuma4567 exactly, but that requires cutting your losses before your drawdown exceeds those profits. Eventuality your drawdown will grow so large it doesn't make sense to continue holding it. Even if it doesn't eclipse your accumulated profit, it will eat into it unnecessarily. So again, my point is there comes a point where cutting losses makes sense. High win-rate strategies aren't all they're hyped up to be. You can make significantly more money winning just 40% of the time (for example) if you know when to cut your losses and let your winners run.
In case price goes up to next grid level, Cashin buy, followed by open buy and sell.
But that means, if price goes up to next grid level up, open another sell. Closing and reopening the buy (again in case going up) only serves the %age winning trades, but does not help the end result.
Yes it is confusing at first
It's confusing because your model doesn't work. There are several math problems here. The first is a buy and sell at each level has a zero sum for fungible derivatives. Even if you had an asset for which this were not the case, you can't "cash out" a buy with a sell and not open ANOTHER sell at the same level. What appears to be happening is you're NOT opening a 3rd trade when you "cash one out", therefore the next time price hits that level you THINK you're "cashing out" a trade but in reality you just double counted.
Maybe you can provide account balance before and after to show how this is profitable?
For example in your "power move," the price goes up to grid 3 (+2) then down one level which you count as (+1) for the sell on level 3. But this sell was just attributed to cashing out a buy. So unless you opened two sells on level 3, you can't take a profit.
Here's the mathematical proof:
Profits = (sum buys) - (sum sells)
One buy and sell at every level = 0
3 trades at every level will get you the +1 from your first trade but then 0.
Sir, When you reach A new level if there is already A SHORT POSITION OPEN AT THAT LEVEL ALREADY, DO YOU OMIT ADDING NEW SHORT AT THIS LEVEL? --and open ONLY A NEW LONG AT THIS LEVEL? DO YOU TAKE INTO CONSIDERATION DAILY ATR/WEEKLY ATR?--otherwise there would be tons of open positions & account would blow up?--and thank you.
please rewatch the video again - Yes - there should only be 1 sell and 1 buy at each level at the most
Nice idea. Just wonder,how many loosing trades until you consider to prune some of them? Since the probability of the price keep moving in one direction limitlessly. Thank you in advance.
Yes the trick is to select none trending currencies like the AUDNZD or EURCHF and to use large grid sizes
@@Expert4xaround 50 to 100pip?
Doesn’t work for brokerages where sell orders and sell short orders are different. Example 1 would be a wash trade with zero profit and would only work for markets trending in a single direction.
Yes you would have to change your broker account
What are the numbers you are using for the grid levels?
The numbers are used to explain the grid concepts - please watch the video again
What about the US First In - First Out Rule?
Will not work in the US for many reasons
What happens if you have 3 buy in profit or 3 sell in profit? How do you save the situation?
That can't happen - please rewatch the video
What if the market has a crazy run instead of consolidating, wouldn't that instantly whipe out your account?
Yes it will - that is why currency selection and gap sizing is critical. The EURGBP has small volatility and does not trend out of control - for instance. If you use the GBPJPY you will be killed.
@@Expert4x It doesn't matter what preparations you chose, it is impossible to say the market can not trend enough to wipe me out when you are opening more trades than you close. Even in the example you have shown us, you never explained how to exit the trade without taking a loss, because you claimed to be net positive without accounting for the new trades opened 🤔
How do you set the stop loss for each order?
This system trades without stop losses
How would you handle if the order gets stuck and the counter trend? That means you should have a lot of equity?
Change your lot size with every position you open that is the only way this will work.Remember January to december there will be one high and one low so set your position accordingly.
Interesting concept
If you do that then you will only end up at breakeven
Don't use Pending Orders. At one point the brokers will happily not trigger one of your orders and you're in a bigger loss. Use EA if possible and set it as instant orders for both buy and sell.
You can watch the charts an do that. I have NEVER had a pending order problem
At what point does is trailing stop loss management explained? Or is there a separate video for this?
The Grid system trades best without a trailing stop
Can I test it on a demo before buying it??
Hanzz z, thank very much for your interest in our products. For more information about our products, how they work and how to purchase them please use this link. www.expert4x.com/expert4x-products/
If you like to have a look at our free Forex trading tools please watch this video th-cam.com/video/h-6NkfWc1O8/w-d-xo.html
All the Best Hanzz z - Alex
i trade stocks, not forex, so I don't undersatnd how you can buy and sell at the same time, but I'm willing to learn.
This works on any broker account that allow Hedging - buy and sell transactions at the same time
Hi Alex does the grid trend multiplier support volatility indices
It was designed for Forex instruments - It has not been tested for other instruments
@Expert4x is there a measure difference between forex and indices
The fact there are currently no dislikes on this video says a lot about the success of this method
This has been around for over 15 years. So many improvements have been made over that time
at one time should they only be 3 positions open or more
Yes there could be many position open at any one time
I thought about the same strategy but I don't think most brokers allow holding long and short position at the same time--may be for forex but not for stocks. Could you tell the broker which you use?
You need to open 2 separate accounts with the same broker - 1 for long, 1 for short.
Don't use US brokers
@@Expert4x Could you kindly mention which broker do you use. Problem with Forex brokers these days is many of them have turned out to be fraud even with regulations --problem of stopping withdrawl of money to bank account is pretty common..
Only if one knew clearly the boundaries of the market, it will work the best. However market would punish you soon on a single buying higher and a single selling lower. .
Yes the trick is to use low volatility sideways currencies - you still need some trading skills
Would be nice to be able to backtest the ea given the price your asking for it.
We know it works - that is why do not allow trials
How can i place two opposite orders in the same time? One cancels the other, in futures mode, in btc/usd, for exemple.
Try it out on a non US MetaTrader account
Do you have an EA with this statergy for sale?
Please use this link:- gridtrendmultiplier.com/
@@Expert4x Thank you Sir, Also wondering if this EA is available for demo accounts for testing.
Thanks a lot Sir for sharing...very useful and valuable...I am new to forex...need your advise whether other forex grid robot also able to set buy and sell on the same grid line, or is it only GTM bot able to do exactly as you are sharing here or any bot supporting grid able to do it as well..Thanks for sharing
Yes the Grid Trend Multiplier is flexible and does the job www.expert4x.com
How do you know where to draw your grids?
This video is an introduction. Grid are determined by the volatility of the Currency and they are generally 30% to 50% of the daily trading range
Are the Grid-Rules public? If yes have hoy a Link?
They are explained in this video - so they are 100% public. They can be traded on any broker account that allow hedging.
@@Expert4x Thank you. On the 2. View i think i understand the system.
Do you set any stop loss levels?
The are no stop levels - but there are many risk reduction settings
@@Expert4x I'm curious as to what that means...
Which are the ranging currency pairs in forex all time??
Look at the weekly trading charts to find those
I have been trying many variations of this system. Can you please explain how you account for swap fees? Because no matter what i try the swap fees just eat so much profit
You need to trim you open trades regularly
@@Expert4x il look into this thank you
@@Expert4x Hi! I have created a similar strategy myself for trading stocks. It's different in many aspects but I think it relies on the same concepts. I made a few videos about it. I would like your thoughts on it. Cheers!
Very interesting strategy. However, I have one question. Do i need to set a stop loss?
This system does not use stop losses
My problem with the strategy is that when the trend goes one way and then all the reverse orders accumulate until i get stopped out. How do I handle this scenario?
This is the downfall of this strategy. You never lose a trade until the one day you lose your entire account. Try the opposite. Close when the price goes against you and let your winners run
Yes like any EA you will blow your account if you use the wrong settings, currency and position sizing.
@@Expert4x I have to respectfully disagree. I think the concept is flawed. You can position your size down to a penny but your profits will shrink and all you're doing is delaying the inevitable.
stop loss.simple as that
Thanks for the presenttation! I missed though (perhaps it's in other video), what can go wrong and how to fix it. For example what happens when price leaves the lower end of the grid and leaves you holding all the buys at higher prices. ¿🤷♂️? Whit is th way out without incurring on losses when the price stays low for ages?
Yes that can happen and you may incur losses for awhile - the multiplier reduces those loses
@@Wasssa11 Yup. It doesnt work unless multiplier is involved doing magic behind the scene
@@Expert4x Is it not possible to average out buys or sells and take profit on next grid level? This way it will never leave a trade open forever. Or you can tell me how the trade will be handled by GTM when it does not hit the next grid level as a positive trade?
one thing u will take 2 deals in one grid when 1 is going up and when it tends to retrace cut 1st one and sell 2nd one and when It touches the Istanbul trade area cut the 2nd one and the candle gives you a signaled for up ward take 3rd trade for buy even for the start or till the end of the 2nd grid
One more question please! When you looked at the end of the 79 Trades, you mentioned the losses as -100,-200,-300, etc.
But wouldn’t the losses be in an uptrend for example:
(1) -100 (1Sell)
(2) -200+-100
(3) -300+-200+-100
Since you’re adding Sell with each step? Its not just the one Sell that is causing loss, but the new ones as well right?
please re-watch the video very carefully - positive trades are cashed in and loser are left open
Husam makes a good point. When you say "cash out", you're not specifying whether you are making, technically, 3 trades at each level AFTER the first one, which must be the case otherwise you're quickly hitting levels where there is nothing to "cash out" because you didn't open a new trade, all you're doing is double-counting.
Husam's math is correct assuming you're opening new trades AND "cashing out" (e.g. there must be 3 trades at each level).
I don't see how this can work.
@@joy-of-chemotaxis this logic is at fault....in uptrend or downtrend your total balance is going to go negetive and finally liquidated.
Losers are left open , so in the end only the last couple of 5,6 orders did not hit their profit targets. The most important thing here is that this strategy wont work in strong up or down trend. You need sideways market.
@@daniellubenov827 but he said it will work in all market. Also his calculation is wrong.
Grid is good for ranging markets but i am a little stuck here i drawn this on a peace of paper and I come up with plus minus zero for every open position we have a close but also an open unless we dont open a sell and a buy for every grid target.. did I missunderstand this?
Thank you for taking the time to share your experience with the grid strategy. It's always valuable to hear different perspectives and insights. Keep up the great work and keep learning - you're on the right track!
When should it close trades?
When the total of your open trades is positive
@Expert4x But what are with the losses? I mean The balance will be in profit I agree. But if I close all trades which are still open and in drawdown then the system won't be profitable. The Equity is almost everytime in drawdown.
In addition your calculation is wrong. You open all the time buys and sells. In the end you deduct $2100 but this is only one trade of 20! So the equity is way more in drawdown. Or am I missing something? @@Expert4x
Can you make daily profit with this or is long it term
Both
And if you open sell and it never come back to 0? it just go up,
than how you solve this problem?
You choose low volatility and sideways currencies to start with - stay away from trending currencies
@@Expert4x For example?
if we buy and sell orders, if the market occurs in a long upward trend until the price does not return, what will happen to all of our sell orders brother...?
Thanks
You will probably blow your account - currency selection and Gap sizing is critical - it still requires some trading skill.
the problem is that the market needs to go up and down regulary around the same point, if the market goes up and it stays up until eternity then you have a huge problem.
What happens after that?
Currency selection is key
Blown account
This strategy is break even at best, if market trends you are in big trouble
If you automate this you'll reach a point where you have zero free margin available and hence you will not be able to enter new trades, I really think one can do better. Utilize this system only if the market goes against your strategy, but using a strategy is important to place the odds in your favor.
Yes if you trade recklessly with no trading skills that is what is exactly will happen
This grid system should also have allowing pattern.. are my right or wrong??
What kind of pattern do you have in mind?
You do realise that you don't need to both buy and sell at the start, simply if it moves up to the next grid line you're taken in with an order you had placed, a sell only and if it moves down to the lower grid line you're taken in with a buy order. In fact you make more because you're paying less commission on spread. It's easier to market it this way and sell automated systems because people think it's a hedge system. Anyone with any understanding of markets would have realised that. For anyone trading this, be aware you shouldn't trade it on every pair and the best way to decide your grid size and entry price should be based on the pairs recent fib retracement and fib extensions. If you understand this type of trading it's a consistent money maker. No EA needed
Yes I do. It makes it easier for new traders to understand the concepts in this introduction video. There are 40 other in the playlist.
yes - currency volatility is critical.
I still dont understand about 1st example
Buy sell going up 1 grid and open buysell again, then going down 1 grid
B/S up 1 grid it's mean B +1 S -1 right?
N go down 1 grid B -1 S+1
Its that breakevent? Why we have gain 1?
You always close profitable trades. There are 2 profitable trades in that move
One of those things when you look at it you say to yourself, "now that will work." If using the newest version it appears we have to use a particular broker - we can't use TD Ameritrade or some other broker? Can we use the GTM on a Mac rather than a PC? I heard you say in one of your videos that you teach how to do it manually - that would appear to be setting up buys and sells every how many pips? Lastly, if the market quickly moves or down in a big way beyond your grids, which my experience in the Forex has rendered many times (EUR/USD), this would appear to be a problem? Are there any other major downfalls to consider?
All OK - Try support for more information
I've been doing manual grid trades for months on Binance (they don't offer the service), and third-party programs cost as much as $100/month which will kill your profits if you have low initial capital. Your grid size is at your own discretion, but typically 0.5-1.5% profit take is acceptable and frequent.
For example, I've been grid trading ADA which is currently ranging from 80 cents to $1.25. I have about 50 grids (used to have 100) with a 1-penny difference (aka, buy at $0.80, $0.81, etc all the way up). My profit take at the lower price range is about 1 penny, and 2 pennies after about $1.10). If you're recycling your profits and making your grid size bigger over time, then first focus on increasing the grids closest to current market price range.
As a disclaimer, it can be time-consuming to do it manually because you have to set alarms for price movements to set new grids after orders are completed, but once you have enough capital, you can either find an exchange that offers grid trading or buy a third-party bot as long as it doesn't cut into your profits too much.
@@samuelmontypython8381 what success have you had thus far with this Sam? Thanks
@@ChrisBarrLive some days can be flat, like 0.3% overall gain, and some days are bigger. Yesterday I hit 3.2% but the day before was barely 0.4%
@@samuelmontypython8381 do you know how many trades you have done and the win rate/overall % growth? Thanks for the reply
Thank you for this video! I have used grid trading with bots, and had some success. But I still needed to learn more about their usage as when the market left the defined range I lost the aforementioned success. I realize you’re not using bots but regardless i appreciate learning more and seeing a person doing it! Cheers 🎉.
Thanks so much for your comment - Much appreciated. Regards Alex
Could this work with TQQQ and SQQQ?
That is untested but it should
Alex: Currently, what currencies are suitable for this EA ?
The EURGBP is good - low on trending and low on volatility
Nice theory maybe works for big firms that have no variable spread and no broker commission/fees. It could work to certain extend but add broker fee and spread to it and it will be very difficult. I will run the math on it but I can tell when you add broker fee to the mix it all falls apart. let's say you have two transaction and one is up 100 and another is down 100, you are saying if you close both them then they cancel each others but no they don't because you will lose broker fees on each one. so scale this to more and more transactions and you will be losing and your loss will accumulate very quickly. Anyway it is a nice video and basically this is a hedging strategy but one that I don't think it could work all the time.
This is a strategy that has been introduced previously. If it has been used by us for over 20 years. Trying to do a mental evaluation does not work well - you need to trade it using a non-trending and low-volatility currency to experience the power of this is strategy using a pruning approach - this video is only a high-level introduction.
Nice video , Any update on this system ?
Please search for Grid Trend Multiplier expert4x on TH-cam