MT4 Grid Trading Systems??? | Forex Factory

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MT4 Grid Trading Systems???

  • #1
  • First Post: Mar 7, 2007 7:54pm Mar 7, 2007 7:54pm
Howdy folks........... I am looking to discuss and share any grid trading EA's. I have a EA called the Machine Gun that does 1% per day but I need to work on the drawdoen on all the stranded positions. Buys and sells are placed every 5 pips with 5pip profit limits and replaced as they are filled. I use a custom channel to place the orders but need a way to manage the stranded open trades. Any ideas??? ..................
"Bulls and Bears make money, pigs get slaughtered!"
  • #2
  • Mar 7, 2007 9:11pm Mar 7, 2007 9:11pm
I was part of a grid trading experiment last year that did ok.

Your machine gun grid is TOO small (depending on what pair you're trading...but for almost all pairs, it's too small). I would widen your grid a bit.

I can tell you that your grid will suffer terrible drawdowns during any meaningful trend.

The math is against you with a grid that small. The only thing I can suggest is to close the entire grid when you make a decent amount of profit and when you can tell you won't be killed during a run. Furthermore, I'd up my take profit level to maybe 2 times the interval...maybe even more...

The key is to get into a decent range...any one-sided trend will kill you.

Quoting PivotPoint
Howdy folks........... I am looking to discuss and share any grid trading EA's. I have a EA called the Machine Gun that does 1% per day but I need to work on the drawdoen on all the stranded positions. Buys and sells are placed every 5 pips with 5pip profit limits and replaced as they are filled. I use a custom channel to place the orders but need a way to manage the stranded open trades. Any ideas??? ..................
  • #3
  • Mar 7, 2007 9:41pm Mar 7, 2007 9:41pm
Quoting PivotPoint
Howdy folks........... I am looking to discuss and share any grid trading EA's. I have a EA called the Machine Gun that does 1% per day but I need to work on the drawdoen on all the stranded positions. Buys and sells are placed every 5 pips with 5pip profit limits and replaced as they are filled. I use a custom channel to place the orders but need a way to manage the stranded open trades. Any ideas??? ..................
PP,

It sounds like you haven't played around with this thing long enough. It will give you 1% during specific market conditions, during other market conditions it will take 100% of your money.

2 ways to trade grids (which you will need to administer) 1. A setup for ranging markets (buy and sell orders together). or 2. Trending markets (buy only or sell only orders)

That's all there is to it... good luck, chances are you'll need ithttp://www.forexfactory.com/images/icons/icon10.gif

MM
  • #4
  • Mar 8, 2007 1:11am Mar 8, 2007 1:11am
Grids are great if you catch the trend with them or in a ranging market. but it it goes against you, you better have deep pockets.

I agree that the 5 pip intervals are to small. I would recomend 50 with at least a 60 pip take profit.

as the grid goes against you then you need to widen the intervals to 75 or 100.

most grids Ive seen operate with no stoploss, I would say you would be better off by determining the % of loss you can withstand and when it gets to it pull the plug.

Then if your broker alllows it there is always a hedge Grid, enter both long and short positions at the same time. off course the drawdown side of this is the killer but the theroy is that it comes back and you make money in both directions.
  • #5
  • Mar 8, 2007 5:31am Mar 8, 2007 5:31am
  •  Trader#0000
  • | Status: Unregistered Trader
We use 2 grids one will be the hedging grid (buy/sell at the same time), the other will be a one direction grid putting buys above/sells bellow. The last one will only have SL, so if markets move up strong we are cashing in buys from the first grid and covering the sells with the second grid. When ranging it would be at brake even so we only profit when strong moves occur.
  • #6
  • Mar 9, 2007 2:48am Mar 9, 2007 2:48am
It seems to me in ranging markets Grids do the best because you are always move back and forth past the same buy sell areas and you replace them as soon as a position is exited,

If your with the trend you do good also in a normal grid, however in a strong trend a hedge grid the wrong side will most likely have a larger drawdown then the winning side with have profit.

So until it turns and comes back toward the wrong side there is always that draw down to deal with,

however if the trend stops and ranges for a while both side should be make some profit.

Hope Im making sence!

if you have the pockets for it a hedging grid might be great but it could take some time to start showing profit.
  • #7
  • Last Post: Nov 3, 2012 7:35am Nov 3, 2012 7:35am
Grid trading is the best strategy i know. Recently i encountered this video, which stopped my breath - a mathematically sure profit related to the drawdown: www .youtube.com/watch?feature=player_embedded&v=jAgZ-NTM1a8
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