Finally, you now use dark mode in your IDE . The older videos used to be sometimes painful to watch coz the white glare was too much 😂 Thanks for the change
this is so sick i meesed around with it and made it work with tesla, turned the tpsl ratio up, and made 1000 in a week! bless you bro make things like this easier to understand
I wish 😂 life is not letting me, and to be honest I am more focused on preparing a course this month, I will try to get a video done about the break out strategy.
What if, what if we distorted the ever horizontal lines of the grid to reflect the current trend? So if the average price action heading down so as the grid sagging a bit, same for the up trend action. In a way this would create price action channel within which position is accumulated/distributed.
Doesn't trade BTC/USDT due to midprice 5:20. There, in 2022-01-01 the price was 46216, and in 2023-01-01 it was ~17000. Due to the static midprice, if I set it to 46000, then the grid is only created in the first months of 2022. So the grid should be tied to the latest price. And the midprice being SMA-30 or 60 is only suitable for small timeframes; because for 1-hours tf and more this is too long a period, there can be fast and high volatility, on which it is not clear how the grid will work.
Hi I agree these parameters are static and work only for EUR USD for the moment, there is a way to make it more dynamic but it's better to make these changes manually every month or 2 by the trader, to keep control.
Thank you for the great explanation, maybe you can make an optimization function for grid_distance? I'm assuming it can affect your results dramatically
Thank you for your support! Yes definitely the grid distance is crucial, I will check for an optimisation method including other parameters as well SL and TP. But it's going to be a while... life is in my way 🙂
Okay so I have lets say 10 trades open at a given time that is 5 long and 5 short positions each, so can I when needing to open 2 new trades just close the two with the highest loss? The idea is to have no real take profit and stop loss going and just nuke it when the trend so far is losing and take those profits and ideally leave with an over all profit. So I was wondering is this a generally worse idea bc to me it seems relatively risky
Hi, it's not a bad idea, but we need to have a rule to close wiinners as well if we only close loosing trades it might not work. But yes closing loosing trades opened for longer than 2 days for example in order to open new ones is not bad! I need to try it and maybe another video.
Do I understand correctly? At the very beginning (for example) I open $10 LONG and $10 SHORT. If the market goes down, then on the next line I get TP for my Short and at the same time I open a new short for $10 and add $10 to my long. What happens to LONG TP in this case? Do I need to move it lower ? And if the market goes deep Short - I will add 10$ to my long on every line bottom ?
Hi there are different ways to grid trade, the one described in the video, you open short and long, then when a TP closes one trade you open short and long again at the new price position and so on, regarding your question all the positions opened at the edge of the grid will remain open for longer time, it's a drawback of this system. I recently discovered couple of errors in the code I will correct these in a new video with new results.
This is just grid trading without a strategy, imagine adding a profitable strategy to ur grid algorithm to manage risk by having a max equity stop out and increase profits, now that would be nice to see. Good luck bro
Sir, For grid type where you buy & sell equal volume at each grid level,what pip distance do you suggest for different currency pairs & cross currencies.Say for a pair daily ATR is 100 pips,then what should be grid distance--50 or 70 pips?Draw down has to be kept under control.And how about grid trading for indices--as indices are more mean reverting after all.Any robots?
Hi, there is no clear approach for the grid distance, I usually check the range of the market for the last week and divide this range into 5 equal slices, this would be my grid.
Brilliant videos! Could you please create classical momentum strategies across assets without any technical indicators. Absolute and relative momentum and short and long positions? Thank you!
@@CodeTradingCafe This is a great study that examples for multiple market anomalies. You can find Momentum anomalies from the chapter 4.2.1 onwards. It would be great to have a codetemplate where it is flexible to test different lags (month, week, day) including previous period lag or not. Also possitbility to test multiple different month results ie. 6 + 3 +1 has to be positive to be taken into account for momentum portfolio. It should be done without moving averages
Thank you! That's a tough question, strategies work on different timeframes and at different market times, then they stop working... you just need to get acquainted with different trading styles and apply these when the market conditions are "good".
Hi, I have some videos on swing trading strategies, the problem is I don't remember which one :) enjoy the channel we have done a lot of useful tips so far I hope you will find something interesting. Good luck!
I guess both math and stats are needed, if you do math you will anyway take stats later in Masters. I would go for Math followed by AI, get an internship in a hedge fund after that, depending on your geolocation.
@@CodeTradingCafe I am in a bad geolocation, I want to do bachelor and try to get full scholarship try study outside the country maybe France, But the problem is I have 2 option pure math or go with stat minor math either way I will try to go master outside the country in ml or quant or ai any related program that can get me into quant trader Math is my best option Or I should go with math minor stat My primary goal is to be able to create stuff(models) and be a good a quant trader! Thank yous alot I really appreciate you're help
I think both math and stats are good, if you do math you will catch up with the stats later on, and if you focus on stats you can catch up with vectors tensorsl and algebra later on... you will need these for ML and Data
Hi, I have written the same code you have explained above for my countries stock, but in stats I am not getting any result, where I need to make modifications can you explain me. Stock price is 2400, gap distance = 40, midprice = 2300, grid range = 1000, my size = 100, cash = 100000. I am using this setting as per stock price. But in result I am getting Nan for all
Hi, you need to adjust these values depending on the price of the stock you are trading, you might need to plot the chart first and then decide on these values. Good luck!
Hi, thank you, mainly because I need to compare it with the other strategies where no commissions were included. In this one only spread should be considered commissions on forex daily trades is almost 0 depending on your broker and type of account.
All or almost all brokers don't allow you to have opposite orders opened at the same time. You can have one or many of the same kind, e.g. one or more buy orders or one or more sell orders but they don't allow you to have one buy order and another sell order at the same time and neither for sell type order. So, how is this strategy going to be used in a real world situation?
Hi, I am not sure if it's not allowed, for FOREX trading I have traded this with 3 different known brokers and had no problems so far, maybe it went unnoticed? Or maybe it's simply allowed. Grid system is not recent and a lot of traders are using it.
@@robnotaro8584 yes I forgot it's location dependent, is it something related to the law or just the brokers? anyway I discovered a flaw in my code... the backtesting library is not taking hedged positions either so one trade is closing an opposite trade as soon as it's opened. I will have to think about a solution or maybe take the video down.
It's not just for the US, I am from Europe and I asked if this is possible to Interactive Brokers, and said no. Just one or multiple trades opened at the same time but all of them must be the same type, all long or short, not mixed. That's what they said. Which brokers you tested it and it worked? And where are you from?
@@Krisler12 that was 10 years ago, I tried it with forextime and oanda if I remember correctly. I never traded this again, but I was using opposite orders at some point instead of stop loss (wild I know).
Hi, only if the ratio is set to 1. But now we have a bigger problem, I just discovered that backtesting doesn't support trades in opposite directions it seems one is closing the other! Edit: I am looking into this if I don't find a solution I will mention it in the description ... or maybe take the video down
@@CodeTradingCafe also would recommend pulling data from somewhere else other than yfinance. pulled the same exact data from yfinance and then on binance and the returns were vastly different, ty for the vid!
@@Zynqify oh! Thanks you mean same data for the same period of time but different results! I have to make a video about it, audience should know this. Thanks a lot for your comment!
@@CodeTradingCafe taking both short and long trade is like taking no trade at all or worse with fees. why not take a trade where you intended to close the "winning" trade?
@@samiab6077 because you're not replying on trend rather on noise and it's much faster if you work both directions. Check the backtest results and the Sharpe ratio it's not bad at all. I am not saying trade this system just it's worth thinking about it, in mathematics this is called arbitrage or hedging (a type of), it has its risks but also its potential.
Yes if the market is going sideways it's really fast and rewarding but if you have a strong trend it's not advisable. I will try some variations on the parameters and make a new video about it. Edit: if you have any questions don't hesitate just don't go trading this if you're not comfortable with all the details.
@@dacecese5375 yes sorry I didn't pay attention that in the US it's not allowed. In the UK it is, but I suspect maybe higher commissions might always give the market an advantage over traders.
Hi, this means that none of the signals you have are equal to 1, most probably you have no signals at all in the dataframe, this is probably due to the conditions you are using and the currency as well, all parameters need to be compatible with the prices of the traded currency. I hope this helps.
Hi You had to add fees per ever trade The problem with strategies like this is you just work for the broker because the global return is too low and return - fees is always negative
I do not understand the following: (1) How can one buy and sell at the same time in the same underlying? Won't the trades cancel each other out immediately? Are you using two diff brokers / accounts? (2) Same question about booking profit and reopening a new pair. To me it seems we are just continuing the winning side and increasing the losing side. Why book profit and re-open a new trade at the same price? (3) I understand it will work in a choppy sideways range-bound market - like forex - and will destroy the account in a trending markets - like Indian stock market. I just do not understand how can the trade be taken at the same time. Obviously i am missing something here. Can someone please help me understand what is this strategy? Thanks in advance. Regards,
Hi, some brokers (most of them for FOREX) they allow you to open 2 distinct trades in different directions, it''s more like betting on the upside and the down side at the same time. Not all accounts have this feature (called hedging) and in some countries I think it's banned by law if I am not mistaken, got some comments about this.
@@CodeTradingCafe Thanks, I am checking if I can mimic this idea by using two diff brokers. Margin will be a problem with both brokers because although at my personal level I am hedged for each of the brokers I am not. I also need to read about ATR. Thanks once again for your time.
Grid trading can be very rewarding but it requires skill and some luck. A buy-sell grid can be very profitable when an instrument is ranging but not when it is trending. Trends can last a long time, e.g. the Euro has been falling against the Swiss Franc for the past 7 months (although not in a straight line). A sell-only grid would probably have been a better performer during this period than a buy-sell grid. The USD fell in a straight line against the CAD from June 1-27 and then has risen in a straight line from July 31 to today. A buy-sell grid would not hve worked well during those periods. My point is that the trader need to make an asessment of market conditions and assess the likelihood that an instrument will be ranging or trending in the near future. And remember, all trends end eventually and all ranges are breached so you need to be flexible and control your risk.
I totally agree, and although what you shared seems simple I think it's one of the most important rules of trading, "there is no single strategy that works every time and in all conditions". Ideally we would have 2 or 3 different strategies for different market conditions and we can assess the market and turn on the proper strategy/algorithm... but that's only in an ideal setup ;)
@@enricoragusa491 I get your concern, the problem is that commissions are very different depending on platforms and brokers, I am still intending to research commission focused topic so we can add it to our strategies. In the meantime I think considering the spread is a priority. And definitely thank you for your comment!
:) makes sense but not entirely... I don't rely on YT for side income I make comfortable living from my day job. As for the How much can you make from profitable trading, think 20% per year realistically, I will let you do the math if this is enough to get rich quick ... provided you are putting your money at risk (some like me don't like high risk). Why do I do YT vids, because being a teacher I started at some point during the pandemic, I liked it and I am still here whenever I have time ;) Edit: some systems really make money yearly but it's sometimes annoyingly slow, it's not for everyone, patience is a killer.
@@CodeTradingCafe I have tried grid system, it does not working in trending market when market keeps on rising in one direction and you get it wrong initially. It will keep rising against you until you make a big loss. My argument is against any kind of automated trading, there is no way a normal retail guy can build a profitable bot because market is so complex, needs lot of human intellect to be successful. Its a cut throat world in trading. your bot may be profitable in back testing or may be in forward testing with very small accounts with limited profit. But no way a simple bot can make you $50K a year profit. That is why hedge funds have to pay quants big money to make more sophisticated trading systems (which are actually profitable).
Generally grid systems don't work, because of the reason you mentioned, but in some ranging markets these can be very efficient, I did it manually in the past (manual trading, real money real account, that was almost 10 years ago) and I grew my account 10X in 6 weeks, the market shifted so I went in a drawdown period but still I was around 8X my initial sum. Obviously I am aware of the risk and I was using 1000X leverage (Forex account), I did it as an experiment with a small amount of money so no pressure, little risk. It's unprofessional because of the high risk, and no one would use it for long term trading. Your observation around getting rich from automated trading is correct, from my experience the best returns are around 8% to 20% profit yearly in automated systems, I agree with you it never made me rich, also mainly because I hate to put large sums in virtual systems (I also have my thinking around this "fake" money system... I could make a whole video around this). I am in the field of AI and software consulting for a while now, I got job offers as a Quant, I didn't take the offer because I was paid more in a different niche (and my freelancing by the time), so Quants are not always paid well, only few are making a decent income. Hedge funds do not make more than 8-20 % yearly from automated trading, but their strategies are safer, less risk and at the same time they invest large amounts this is why 8-20% is a huge return (thinking investing 10k$ versus 1000k$ for example). I hope this discussion clarifies a bit the situation, in brief yes you can still find a simple system that makes you a small income (a holidays trip per year for example), but again it's not easy either, even if it's simple. I'll go and have some rest now, it's getting late :)
Finally, you now use dark mode in your IDE . The older videos used to be sometimes painful to watch coz the white glare was too much 😂 Thanks for the change
Lol it depends on which PC I am using, but you are right I should stick with the dark side 😂
this is so sick i meesed around with it and made it work with tesla, turned the tpsl ratio up, and made 1000 in a week! bless you bro make things like this easier to understand
Glad it's helpful, good luck!
Videos been out for only a few hours though?
Hey he meant in backtesting, not real trading
It's Amazing, Thanks a lot for sharing. 🙏 I tested this strategy in range market and results were really good.
Thank you for sharing your experience as well, it's good to know!
thank you for great explanation. I hope there is explanation of Bayesian model that implementation in bot trading
I will look into it see if it has potential
It has been 9 days and you have not shared any new video.
You definitely are working on yet another great strategy
I wish 😂 life is not letting me, and to be honest I am more focused on preparing a course this month, I will try to get a video done about the break out strategy.
That is not any issue.
As i am a new subscriber, I still have 100 of your videos to study.
Take your time...and so do I 🙏
Terrific channel!!!!! Please can you make a video about this strategy in Python integrating with Metatrader 5. Greetings from Brazil.
Oi, thank you for your support, I am not using mql5 anymore it has been a while, but we can write a bot in python for this strategy.
Edit: Obrigado
What if, what if we distorted the ever horizontal lines of the grid to reflect the current trend? So if the average price action heading down so as the grid sagging a bit, same for the up trend action. In a way this would create price action channel within which position is accumulated/distributed.
I need to wrap my head around this, it never occurred to me before. Creative! 🙂
@@CodeTradingCafe Any Updates on that maybe? :)
Doesn't trade BTC/USDT due to midprice 5:20. There, in 2022-01-01 the price was 46216, and in 2023-01-01 it was ~17000. Due to the static midprice, if I set it to 46000, then the grid is only created in the first months of 2022. So the grid should be tied to the latest price.
And the midprice being SMA-30 or 60 is only suitable for small timeframes; because for 1-hours tf and more this is too long a period, there can be fast and high volatility, on which it is not clear how the grid will work.
Hi I agree these parameters are static and work only for EUR USD for the moment, there is a way to make it more dynamic but it's better to make these changes manually every month or 2 by the trader, to keep control.
Thank you for the great explanation, maybe you can make an optimization function for grid_distance? I'm assuming it can affect your results dramatically
Thank you for your support! Yes definitely the grid distance is crucial, I will check for an optimisation method including other parameters as well SL and TP. But it's going to be a while... life is in my way 🙂
Okay so I have lets say 10 trades open at a given time that is 5 long and 5 short positions each, so can I when needing to open 2 new trades just close the two with the highest loss? The idea is to have no real take profit and stop loss going and just nuke it when the trend so far is losing and take those profits and ideally leave with an over all profit. So I was wondering is this a generally worse idea bc to me it seems relatively risky
Hi, it's not a bad idea, but we need to have a rule to close wiinners as well if we only close loosing trades it might not work. But yes closing loosing trades opened for longer than 2 days for example in order to open new ones is not bad! I need to try it and maybe another video.
Do I understand correctly? At the very beginning (for example) I open $10 LONG and $10 SHORT. If the market goes down, then on the next line I get TP for my Short and at the same time I open a new short for $10 and add $10 to my long. What happens to LONG TP in this case? Do I need to move it lower ? And if the market goes deep Short - I will add 10$ to my long on every line bottom ?
Hi there are different ways to grid trade, the one described in the video, you open short and long, then when a TP closes one trade you open short and long again at the new price position and so on, regarding your question all the positions opened at the edge of the grid will remain open for longer time, it's a drawback of this system.
I recently discovered couple of errors in the code I will correct these in a new video with new results.
This is just grid trading without a strategy, imagine adding a profitable strategy to ur grid algorithm to manage risk by having a max equity stop out and increase profits, now that would be nice to see. Good luck bro
Thanks, yes this was done somehow quickly but it has potential like you described. Maybe I will make one more video for optimisation.
Can you please backtest this strategy (supertrend in setting 10 atr,5 factor with macd 12,26,5 and stochastic momentum )?
Hi do you have more details?
Sir, For grid type where you buy & sell equal volume at each grid level,what pip distance do you suggest for different currency pairs & cross currencies.Say for a pair daily ATR is 100 pips,then what should be grid distance--50 or 70 pips?Draw down has to be kept under control.And how about grid trading for indices--as indices are more mean reverting after all.Any robots?
Hi, there is no clear approach for the grid distance, I usually check the range of the market for the last week and divide this range into 5 equal slices, this would be my grid.
Brilliant videos! Could you please create classical momentum strategies across assets without any technical indicators. Absolute and relative momentum and short and long positions? Thank you!
Hey thank you, can you please send me a link or more details about what you have in mind.
@@CodeTradingCafe This is a great study that examples for multiple market anomalies. You can find Momentum anomalies from the chapter 4.2.1 onwards. It would be great to have a codetemplate where it is flexible to test different lags (month, week, day) including previous period lag or not. Also possitbility to test multiple different month results ie. 6 + 3 +1 has to be positive to be taken into account for momentum portfolio. It should be done without moving averages
@@juuttuub Hi, thank you for your input, you mentioned chapter 4.2.1 in which reference is it a book?
TH-cam dropped the link. Try finding the document: Replicating Anomalies SSRN year 2018 version
Also this one is really interesting and worth a look: Stock Market Anomalies and Machine Learning Across the Globe SSRN
very good video! Could you give us your top 3 current strategies for forex?
Thank you! That's a tough question, strategies work on different timeframes and at different market times, then they stop working... you just need to get acquainted with different trading styles and apply these when the market conditions are "good".
Could you backtest a swing points based trading strategy?
Hi, I have some videos on swing trading strategies, the problem is I don't remember which one :) enjoy the channel we have done a lot of useful tips so far I hope you will find something interesting. Good luck!
Waiting for road map as quant trading, analyst and what do you recommend majoring in pure math or stat minor math
I guess both math and stats are needed, if you do math you will anyway take stats later in Masters. I would go for Math followed by AI, get an internship in a hedge fund after that, depending on your geolocation.
@@CodeTradingCafe I am in a bad geolocation, I want to do bachelor and try to get full scholarship try study outside the country maybe France,
But the problem is I have 2 option pure math or go with stat minor math either way I will try to go master outside the country in ml or quant or ai any related program that can get me into quant trader
Math is my best option
Or I should go with math minor stat
My primary goal is to be able to create stuff(models) and be a good a quant trader!
Thank yous alot I really appreciate you're help
I think both math and stats are good, if you do math you will catch up with the stats later on, and if you focus on stats you can catch up with vectors tensorsl and algebra later on... you will need these for ML and Data
@@CodeTradingCafe thank you a lot for you're help , ya i will probably go with stat and math i guess best option
Good luck! you will enjoy it.
Very cool presentation
Thank you for your support! Good luck!
would be cool to see some Fibonacci Grid Strategy
Hi, I have written the same code you have explained above for my countries stock, but in stats I am not getting any result, where I need to make modifications can you explain me. Stock price is 2400, gap distance = 40, midprice = 2300, grid range = 1000, my size = 100, cash = 100000. I am using this setting as per stock price. But in result I am getting Nan for all
Hi, you need to adjust these values depending on the price of the stock you are trading, you might need to plot the chart first and then decide on these values. Good luck!
Whitout commission too many strategies are profitable. Why dont you set commission if it is a working strategy?
Hi, thank you, mainly because I need to compare it with the other strategies where no commissions were included. In this one only spread should be considered commissions on forex daily trades is almost 0 depending on your broker and type of account.
All or almost all brokers don't allow you to have opposite orders opened at the same time. You can have one or many of the same kind, e.g. one or more buy orders or one or more sell orders but they don't allow you to have one buy order and another sell order at the same time and neither for sell type order. So, how is this strategy going to be used in a real world situation?
Hi, I am not sure if it's not allowed, for FOREX trading I have traded this with 3 different known brokers and had no problems so far, maybe it went unnoticed? Or maybe it's simply allowed. Grid system is not recent and a lot of traders are using it.
@@CodeTradingCafe US Brokers wont let you hedge trade. Its stupid
@@robnotaro8584 yes I forgot it's location dependent, is it something related to the law or just the brokers?
anyway I discovered a flaw in my code... the backtesting library is not taking hedged positions either so one trade is closing an opposite trade as soon as it's opened. I will have to think about a solution or maybe take the video down.
It's not just for the US, I am from Europe and I asked if this is possible to Interactive Brokers, and said no. Just one or multiple trades opened at the same time but all of them must be the same type, all long or short, not mixed. That's what they said. Which brokers you tested it and it worked? And where are you from?
@@Krisler12 that was 10 years ago, I tried it with forextime and oanda if I remember correctly. I never traded this again, but I was using opposite orders at some point instead of stop loss (wild I know).
Can someone explain to me how this works? Sl of first position is in the same place as tp of second position.
Hi, only if the ratio is set to 1. But now we have a bigger problem, I just discovered that backtesting doesn't support trades in opposite directions it seems one is closing the other!
Edit: I am looking into this if I don't find a solution I will mention it in the description ... or maybe take the video down
@@CodeTradingCafe set hedging=true in the backtest settings and it'll show you the actual returns
Thanks a lot! I will try it but it's usually true by default ... I will check it out.
@@CodeTradingCafe also would recommend pulling data from somewhere else other than yfinance. pulled the same exact data from yfinance and then on binance and the returns were vastly different, ty for the vid!
@@Zynqify oh! Thanks you mean same data for the same period of time but different results! I have to make a video about it, audience should know this. Thanks a lot for your comment!
This strategy makes no sense, wouldn't the long and short positions cancel out each other's profit and loss?
They do until you close the winning one. The difference is where do you exit each trade.
@@CodeTradingCafe taking both short and long trade is like taking no trade at all or worse with fees. why not take a trade where you intended to close the "winning" trade?
@@samiab6077 because you're not replying on trend rather on noise and it's much faster if you work both directions. Check the backtest results and the Sharpe ratio it's not bad at all. I am not saying trade this system just it's worth thinking about it, in mathematics this is called arbitrage or hedging (a type of), it has its risks but also its potential.
@@CodeTradingCafe I think I get it now if the market is choppy it might be possible it performs.
Yes if the market is going sideways it's really fast and rewarding but if you have a strong trend it's not advisable. I will try some variations on the parameters and make a new video about it.
Edit: if you have any questions don't hesitate just don't go trading this if you're not comfortable with all the details.
How can you be both long and short at the same time? The two positions would cancel each other surely?
When trading FOREX, if you have an account that allows it, you can do this. See OANDA
It's allowed and both trades will remain open independently.
@@CodeTradingCafe thanks and I'll go back and rewatch the video.
You need to allow hedging. This is not allowed in the United States unfortunately.
@@dacecese5375 yes sorry I didn't pay attention that in the US it's not allowed. In the UK it is, but I suspect maybe higher commissions might always give the market an advantage over traders.
That's what I'm talking about!!
Thanks a lot for your support 😊
i dont get any signal when i do this (dataF["signal"]=signal
dataF[dataF["signal"]==1]) i adapted to my current date but nothing works for me
Hi, this means that none of the signals you have are equal to 1, most probably you have no signals at all in the dataframe, this is probably due to the conditions you are using and the currency as well, all parameters need to be compatible with the prices of the traded currency. I hope this helps.
Hello. How to close the loss and profit in this strategy. Can you explain?
Hi, you just have to fix a SL and TP levels for each trade, but these are dependent on the grid distance and should be the same for all the trades.
@@CodeTradingCafe Do you mean that every trade should have it's own sl on previous grid level, and tp on future lvl?
Please make video of this strategy for btc 😍😍
Yeah wev have to try something with crypto. But in the meantime you can change the first part and have it run on any asset.
Where are the lot size calculations?
in the backtesting class, but we didn't include any calculations for lot size
Hi
You had to add fees per ever trade
The problem with strategies like this is you just work for the broker because the global return is too low and return - fees is always negative
I add fees on exceptional strategies, and some work well but with a very low leverage, it's the leverage that kills it with the fees.
where is the link?
Hi there is a corrected version of this with the link: th-cam.com/video/YytCoeSq30E/w-d-xo.html
are you learning about forex too? i just learned forex trading from the nfc community.
thank you
I forgot was it you who asked for it? anyway enjoy it, I was surprised by the results!
Thanks👍
Thank you too
I do not understand the following:
(1) How can one buy and sell at the same time in the same underlying? Won't the trades cancel each other out immediately? Are you using two diff brokers / accounts?
(2) Same question about booking profit and reopening a new pair. To me it seems we are just continuing the winning side and increasing the losing side. Why book profit and re-open a new trade at the same price?
(3) I understand it will work in a choppy sideways range-bound market - like forex - and will destroy the account in a trending markets - like Indian stock market. I just do not understand how can the trade be taken at the same time.
Obviously i am missing something here. Can someone please help me understand what is this strategy? Thanks in advance. Regards,
Hi, some brokers (most of them for FOREX) they allow you to open 2 distinct trades in different directions, it''s more like betting on the upside and the down side at the same time. Not all accounts have this feature (called hedging) and in some countries I think it's banned by law if I am not mistaken, got some comments about this.
@@CodeTradingCafe Thanks, I am checking if I can mimic this idea by using two diff brokers. Margin will be a problem with both brokers because although at my personal level I am hedged for each of the brokers I am not. I also need to read about ATR. Thanks once again for your time.
Grid trading can be very rewarding but it requires skill and some luck. A buy-sell grid can be very profitable when an instrument is ranging but not when it is trending. Trends can last a long time, e.g. the Euro has been falling against the Swiss Franc for the past 7 months (although not in a straight line). A sell-only grid would probably have been a better performer during this period than a buy-sell grid. The USD fell in a straight line against the CAD from June 1-27 and then has risen in a straight line from July 31 to today. A buy-sell grid would not hve worked well during those periods. My point is that the trader need to make an asessment of market conditions and assess the likelihood that an instrument will be ranging or trending in the near future. And remember, all trends end eventually and all ranges are breached so you need to be flexible and control your risk.
I totally agree, and although what you shared seems simple I think it's one of the most important rules of trading, "there is no single strategy that works every time and in all conditions". Ideally we would have 2 or 3 different strategies for different market conditions and we can assess the market and turn on the proper strategy/algorithm... but that's only in an ideal setup ;)
This is hedging not grid trading(grid is dca trading)
Hi, it does use a grid approach though, maybe 'grid hedging' is a good name.
Please try with a commission, otherwise, it seems too good to be true.
I mean, if I use a commission I get an error. Since I don't trade CFD, I have to pay at least 4 basis points of commission.
@@enricoragusa491 I get your concern, the problem is that commissions are very different depending on platforms and brokers, I am still intending to research commission focused topic so we can add it to our strategies. In the meantime I think considering the spread is a priority.
And definitely thank you for your comment!
By the way, there was an error in the code I will release a correction video for this
omg this is so insanely crazy in a bad way
Yep, sometimes we have bad stuff under the scope :)
✨ Promo'SM
Hey, thank you, I'd rather let the videos flow on their own for now.
With this low number of samples, the backtests presented here are absolutely meaningless.
Maybe, but the strategy is not new.
If this works, you wont be making videos to earn income. You are relying on youtube for side income. Because this does not work at all.
:) makes sense but not entirely... I don't rely on YT for side income I make comfortable living from my day job.
As for the How much can you make from profitable trading, think 20% per year realistically, I will let you do the math if this is enough to get rich quick ... provided you are putting your money at risk (some like me don't like high risk).
Why do I do YT vids, because being a teacher I started at some point during the pandemic, I liked it and I am still here whenever I have time ;)
Edit: some systems really make money yearly but it's sometimes annoyingly slow, it's not for everyone, patience is a killer.
@@CodeTradingCafe I have tried grid system, it does not working in trending market when market keeps on rising in one direction and you get it wrong initially. It will keep rising against you until you make a big loss. My argument is against any kind of automated trading, there is no way a normal retail guy can build a profitable bot because market is so complex, needs lot of human intellect to be successful. Its a cut throat world in trading. your bot may be profitable in back testing or may be in forward testing with very small accounts with limited profit. But no way a simple bot can make you $50K a year profit. That is why hedge funds have to pay quants big money to make more sophisticated trading systems (which are actually profitable).
Generally grid systems don't work, because of the reason you mentioned, but in some ranging markets these can be very efficient, I did it manually in the past (manual trading, real money real account, that was almost 10 years ago) and I grew my account 10X in 6 weeks, the market shifted so I went in a drawdown period but still I was around 8X my initial sum. Obviously I am aware of the risk and I was using 1000X leverage (Forex account), I did it as an experiment with a small amount of money so no pressure, little risk. It's unprofessional because of the high risk, and no one would use it for long term trading.
Your observation around getting rich from automated trading is correct, from my experience the best returns are around 8% to 20% profit yearly in automated systems, I agree with you it never made me rich, also mainly because I hate to put large sums in virtual systems (I also have my thinking around this "fake" money system... I could make a whole video around this).
I am in the field of AI and software consulting for a while now, I got job offers as a Quant, I didn't take the offer because I was paid more in a different niche (and my freelancing by the time), so Quants are not always paid well, only few are making a decent income.
Hedge funds do not make more than 8-20 % yearly from automated trading, but their strategies are safer, less risk and at the same time they invest large amounts this is why 8-20% is a huge return (thinking investing 10k$ versus 1000k$ for example).
I hope this discussion clarifies a bit the situation, in brief yes you can still find a simple system that makes you a small income (a holidays trip per year for example), but again it's not easy either, even if it's simple.
I'll go and have some rest now, it's getting late :)
@@CodeTradingCafe Great! software and hi-tech AI field is more reliable for income than trading. I am in same scenario.