If I were to do a grid system, here's what I would do...
I would take a daily chart, and a 5M chart (or something smaller than the daily).
Use a zigzag indicator on the 5M chart to determine average distance between peaks and valleys.
With that information, I then size the grid so that it takes two TPs per peak/valley.
With the spacing in mind, I then move to the daily chart.
Let's say the current price is 1.000, and the optimal peak/valley is 20 pips. I then place buy stops above 1.000 every 10 pips, and sell stops below 1.000 every 10 pips. Each trade has a 10 pip TP/SL. So, let's say the market breaks out long and ultimately hits 150 pips before retracing. That means I had 14 10-pip orders successfully hit their targets, and 1 order stoped out.
As the market moves up, I would then place sell stops after the price, maintaining the 10 pip interval.
The thing that will kill this system, is if the market bounces around in a 20 pip range.
I would take a daily chart, and a 5M chart (or something smaller than the daily).
Use a zigzag indicator on the 5M chart to determine average distance between peaks and valleys.
With that information, I then size the grid so that it takes two TPs per peak/valley.
With the spacing in mind, I then move to the daily chart.
Let's say the current price is 1.000, and the optimal peak/valley is 20 pips. I then place buy stops above 1.000 every 10 pips, and sell stops below 1.000 every 10 pips. Each trade has a 10 pip TP/SL. So, let's say the market breaks out long and ultimately hits 150 pips before retracing. That means I had 14 10-pip orders successfully hit their targets, and 1 order stoped out.
As the market moves up, I would then place sell stops after the price, maintaining the 10 pip interval.
The thing that will kill this system, is if the market bounces around in a 20 pip range.