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Grid trading system, keeping DD to a minimum

  • #41
  • Jun 10, 2020 6:20am Jun 10, 2020 6:20am
Quoting yonnie
alright, here we go....so we`re looking for an instrument which trends strongly....could be one which just reached a new high/low over the last few years and now trends strongly in the opposite direction like in a V-formation......all visible on the daily/weekly chart i.e. AUD/USD. generally speaking forex is not the instrument of choice, but rather stock indices, grains, energy, cocoa, coffee etc futures/cfds......%-wise forex doesn`t go up or down that much if you compare it to other instruments. now we have our grid in such a way that we don`t...
@yonnie, fantastic! Many thanks for your detailed response, very much appreciated! Sounds like a solid methodology, and I will definitely be trialing this. Please keep posting if you have more tips to give. Looking at the weekly charts, AUDCHF, AUDJPY and AUDCAD appear to be likely candidates as well? And possibly GBPUSD, NZDCHF and NZDUSD if they break the downward trend line? Would you agree? Many thanks
  • #42
  • Jun 10, 2020 8:38pm Jun 10, 2020 8:38pm
hi danjuma,
look at AUD/USD in March - lowest price since 2002! Brent oil @ $16, copper very low etc.......those situations dont happen every day and you better take advantage of them when they come around........they have so much upside......those pairs you mention have already moved up a lot, but of course they could move a lot higher......just give it a go and even if they`re not the greatest, you`ll still make 25-50% a year.
  • #43
  • Jun 11, 2020 5:10am Jun 11, 2020 5:10am
Quoting yonnie
hi danjuma, look at AUD/USD in March - lowest price since 2002! Brent oil @ $16, copper very low etc.......those situations dont happen every day and you better take advantage of them when they come around........they have so much upside......those pairs you mention have already moved up a lot, but of course they could move a lot higher......just give it a go and even if they`re not the greatest, you`ll still make 25-50% a year.
Many thanks!
  • #44
  • Jun 11, 2020 5:19pm Jun 11, 2020 5:19pm
Hi yonnie,

Just reading the following statement of yours again: "we enter 2 new buy orders @ 1.1075: 0.01 lot SL 1.1000 - TP 1.1150 and 0.01 lot SL 1.1075 - no TP."

The text I have highlighted in bold red, should that not read 1.1000 as opposed to 1.1075? Thanks
  • #45
  • Jun 12, 2020 12:50am Jun 12, 2020 12:50am
yeah, you`re right......really need a good proof reader
  • #46
  • Jun 12, 2020 6:43am Jun 12, 2020 6:43am
Hi all,

Very interesting ideas for me being a grid trader.
But what happened with Genasea's idea? I like it so much. Trying to test it manually, but would love to see an EA to test it more systematically.

thanks
  • #47
  • Jun 16, 2020 11:17pm Jun 16, 2020 11:17pm
Has everyone got silent because they had become rich? i backtested this strategy from 2014 to date on audnzd and it was positive return. however the returns are low. what is the recommended lot size per account capital?
  • #48
  • Jun 17, 2020 12:27am Jun 17, 2020 12:27am
wow is that not awesome???......we`re talking here about a trending grid.....you just did a backtest REGARDLESS OF TREND on audnzd and still came out positive........
the lot size is dependent on the DD in your test and how much pain you can handle....
  • #49
  • Jun 24, 2020 5:03am Jun 24, 2020 5:03am
Quoting yonnie
alright, here we go....so we`re looking for an instrument which trends strongly....could be one which just reached a new high/low over the last few years and now trends strongly in the opposite direction like in a V-formation......all visible on the daily/weekly chart i.e. AUD/USD. generally speaking forex is not the instrument of choice, but rather stock indices, grains, energy, cocoa, coffee etc futures/cfds......%-wise forex doesn`t go up or down that much if you compare it to other instruments. now we have our grid in such a way that we don`t...
Would somebody be kind enough to make an EA for this. It is a bit difficult to monitor and manage if working full time and no access to your MT4 terminal when at work. Many thanks
  • #50
  • Jun 27, 2020 4:32pm Jun 27, 2020 4:32pm
Quoting danjuma
{quote} Would somebody be kind enough to make an EA for this. It is a bit difficult to monitor and manage if working full time and no access to your MT4 terminal when at work. Many thanks
I do have experience coding EAs and am actually shopping around to partner with folks that have mechanical trading strategies/methodologies with a proven edge over the markets... I confess I still haven't fully understood this particular grid trading system, but been curious and dabbled with such systems recently -- if you'd like to partner on developing a trading bot around this, I'd be happy to jump on a call to discuss your back-testing results in more detail.
  • #51
  • Jun 27, 2020 10:49pm Jun 27, 2020 10:49pm
Quoting ddiall
{quote} I do have experience coding EAs and am actually shopping around to partner with folks that have mechanical trading strategies/methodologies with a proven edge over the markets... I confess I still haven't fully understood this particular grid trading system, but been curious and dabbled with such systems recently -- if you'd like to partner on developing a trading bot around this, I'd be happy to jump on a call to discuss your back-testing results in more detail.

Thanks for the response ddial. I am not actually the author of the strategy/method so do not have any backtesting result etc. but I think I do understand the strategy. The author is @yonnie
  • #52
  • Apr 20, 2021 4:12pm Apr 20, 2021 4:12pm
I just saw this thread because of yonnie's comment on another forum.
As long as I have a little time, I catch up with the thread and contribute as much as I can.
I like to find a positive solution to the grid.
  • #53
  • Apr 22, 2021 10:27am Apr 22, 2021 10:27am
Quoting gerval
I just saw this thread because of yonnie's comment on another forum. As long as I have a little time, I catch up with the thread and contribute as much as I can. I like to find a positive solution to the grid.
Which forum is he on
  • #54
  • Apr 23, 2021 9:01pm Apr 23, 2021 9:01pm
Hello, genasea,

Thanks for creating this thread. The topic is just I want to understand more.

Now I am trying to find a control logic that can switch between two types of grid trading strategy, with_the_trend and against_the_trend, such that a grid trading can switch it strategy according to the market is in trending or ranging.

The timing for switching strategies, I think, should depend on the instant results of grid trading. We just to feel the market goes and follow it but not to guess it.

What I am working out now is to find a effective and efficient way to do the strategies switching control.

Cheers
  • #55
  • Apr 23, 2021 11:19pm Apr 23, 2021 11:19pm
Quoting gerval
I just saw this thread because of yonnie's comment on another forum. As long as I have a little time, I catch up with the thread and contribute as much as I can. I like to find a positive solution to the grid.
Earning on grids doesn't seem to be that hard, but as many other things must have positive expectancy and chances in long term. In this thread, I've seen the author analyzing no-hedge grids where BUYS were generally over SELLS. Well, that has totally negative expectancy in any term.
  • #56
  • Edited 3:39am Apr 24, 2021 3:27am | Edited 3:39am
Quoting ddiall
{quote} I do have experience coding EAs and am actually shopping around to partner with folks that have mechanical trading strategies/methodologies with a proven edge over the markets... I confess I still haven't fully understood this particular grid trading system, but been curious and dabbled with such systems recently -- if you'd like to partner on developing a trading bot around this, I'd be happy to jump on a call to discuss your back-testing results in more detail.
I have provided mql for basic structure EA for finding an edge over the market. It is not about the grid trading system.
Grid trading does not need any experience of trading to code a bot.

Most of MT4 and MT5 programmers and developers think it an easy way to generate income from selling signals and EAs if somehow they can build a bot
that will not need any trader to think except put money on its effectiveness, they have a huge market for them.

Most of such coders got carried over to the extent that instead of selling their services, they bet their personal life savings on such bots and lost.

The trading bot developed by me captures my actual trading experience of 36+ years. Since I have no agenda to be called a Guru or make money by selling signals or EAs, I am providing mql and there is absolutely no restriction on its use or modification.

https://www.forexfactory.com/thread/...9#post13508389

The trading bot is already developed that can accommodate various strategies, including hedging without involving grid trading, as and when needed.
But for now, can you help me out back-testing for all those strategies and develop your own bot after getting desired results.

MQL is available for anyone to use it to modify and develop their own bots. However, those who think they can sell bots easily think again how expensive digital marketing is. A sales lead from US$200 to US$1,000 per lead depending on volume of interest generated. The Sales Lead is without any guarantee of it ending up with the conversion.
Practice makes a person perfect
  • #57
  • Edited 4:12am Apr 24, 2021 3:38am | Edited 4:12am
Quoting TeChaoLiang
Hello, genasea, Thanks for creating this thread. The topic is just I want to understand more. Now I am trying to find a control logic that can switch between two types of grid trading strategy, with_the_trend and against_the_trend, such that a grid trading can switch it strategy according to the market is in trending or ranging. The timing for switching strategies, I think, should depend on the instant results of grid trading. We just to feel the market goes and follow it but not to guess it. What I am working out now is to find a effective and...
If that trending and ranging timing switches were available, financial trading will become another factory automation process.
Trading is built on auction market bidding which carries an element of total uncertainty unless cartels rig the auctioning process in which case you will never know when they are rigging and not rigging.
Practice makes a person perfect
  • #58
  • Apr 24, 2021 4:56am Apr 24, 2021 4:56am
Quoting genasea
As you can see, no matter where price is inside of the grid system, the drawdown never decreases (or increases for that matter) on the hedged and non-hedged grid system. This is shown on the attachments. The non-hedged loss remains at 200 pips, and the hedged system remains at 80 pips. A big detractor of this type of system is that you have to get out of the grid and pick up a trend that leaves the price levels of the grid to turn the drawdown back into profit (if you did not already close all positions at a predefined DD level). {image} {image}...
This excel example is not correct. At every turn you need to add spread and commission. It is very very very extremely important to calculate! The picture will be DIFFERENT.

I have tested several grid logics and that my results:

1. Grid longs higher shorts lower. DD increases because of grid widening and because of spread and commissions.
2. Grid agains the trend. Works good on flat, will ruin you on non-stoppable trend.
3. Grid like fence - adding at the same place higher and lower waiting for the trend. Works good on trends and will ruin you on flat.

Also I have tried "random" 2&3 on 28 pairs. That works better than if you choose one.

P.s. and of course the lot size and the distance for grid must be different (dynamic) for every traded pair. 1 lot size for EU and 1 for GU or XAU are not equal at all.
Observer effect
  • #59
  • Apr 24, 2021 5:44am Apr 24, 2021 5:44am
I know one of my friend who use currency strength meter to intraday grid ea.So only allows buy or sells according to it.
  • #60
  • Apr 27, 2021 8:44am Apr 27, 2021 8:44am
[quote = SWGamer; 13509544]我认识我的一位朋友，他使用货币强度计来盘整ea，因此只允许根据它进行买入或卖出。[/ quote]


Hey, that's how I trade. I trade by hand
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