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Median Grid Trading

Hello,

Interesting approach. One quick question.
The way I see it,it is essential to put the median in the right spot,because the quardants and consequently your trading is related to that.
So how do you determine where your median should be?

Thanky you
Just an advice for you:

You cannot be successful to trade with one or two positions simply looking for the right moment to place them and wait. Learn from the big players. You should use many (small) positions and keep watching the average price of these positions and if needed modify it with following new positions. You can move your "entry" price with this method! Never mind the losses in the meantime created on your whole position! Use only "chatastrophic" stop losses!

If someone understands what i'm saying, it's a big help. It was also for me....

Sorry for my poor english!

Bye!
Xaron,
seems to me this is the best system for me or to traders like me.........Your nice feedback and easy going analysis makes it simple to catch the main points....And it would be very nice from you if you could kindly spot some light on profit taking arena as this is the most important part in any trading system though this is not a system like others.........
Simply this system catches the bigger pips as it works with one kind of support and resistance ..........

I am not going to trade in one direction,this is may be the bad decision but I am gonna do it.........I shall trade only monthly basis and if the monthly bias is down then I am gonna short and vice versa as it did not make sense to me that one currency pair can go down and down for years or last one year...In our own eyes we saw some severe fall of EUR and GBP against dollar and USD against CAD........And the about same result can be got if you use monthly pivot rather than Median grid......Actually the idea what Dark used is unique and something new what can make you observe this financial giant,Forex, in another way..........

Suppose big fall like 3000 pips can wash you if you did not use 1:1 leverage and this is the bad part of this approach and it is better to personalize it with everyone's trading ability as many can get a heartache when he is seeing that his millions is now half in amount.........

Thanx Xaron in overall and working with it more and more in my own way........I always try to combine the better part of several systems and it works really..........

With regards
kawser
hey kawser...... the difficulty is going to lie in the directional bias decision.... what will be used to determine direction.....


//-----

as example, just written for this thread........ the ea pictured below will plot 6 fully adjustable quadrants/grids at the users discretion.... or if the user prefers the ea will draw the grids based on it's coding.....

it also will make an reasonable approximation of the trend on all pairs on 6 time frames, if it can.... up or down..... most will be accurate....

//-----

the ea writing is the easy part..... what is going to consistantly determine trend direction, that will be difficult.....h
Attached Image (click to enlarge)
Click to Enlarge Name: trending.gif Size: 34 KB
to trade and code, keep both simple... no call to impress....h
  • Post #65
  • Quote
  • Edited 8:55pm Sep 11, 2009 8:16pm | Edited 8:55pm
Quoting hayseed
as example, just written for this thread........ the ea pictured below will plot 6 fully adjustable quadrants/grids at the users discretion.... or if the user prefers the ea will draw the grids based on it's coding.....
There should be (4) areas, you have five of them.
Don't wish it were easier, wish you were better. ~ Jim Rohn
actually there are 6 areas.... only 5 can be seen......

haven't read the book and not completely clear on the rules.......h
to trade and code, keep both simple... no call to impress....h
Quoting hayseed
hey kawser...... the difficulty is going to lie in the directional bias decision.... what will be used to determine direction.....
Yes that's the point how to take decision the currency is in long biased or short........And I think the pure fundamental can do nothing for short term trader like me or us and Xaron also don't bother it..And fundamental is also changed with the political views and you can't measure it........you will see sometimes great type of intervention from the big and the central banks and that time nothing to use rather than the price action like techno and I am gladly trying to mix techno with this system.............But for me techno is not indicators , for me techno is Moving averages and support and resistance........

And for up bias I use the analysis of median grid of last two months........If the running median grid is up than last month's median grid then I take it the bias is long and I don't care then fundamentals of pairs............

And yes sometimes the grid will tell you lies and it can happen in next months I don't know and you don't know whether the fundamental is up or down...........And if you think about the PPP measurement then after losing about 2000 pips you will get that the bias was down in fundamentals.......So what to do in this lying median grid what is telling to long but the price action is telling to short??????????And what will be the precautions to take in this months??????????For me I personalized it in my own way............And in median grid system the answer have.......You have predefined maximum risk to take and you are using lower gearing ............So you are facing the predefined risk in half in number then according to Xaron and common sense use anti losing options or close all your trades but for me it is better to close all the trades at the break point better than hedging as hedging just count interest rate for the brokers..................

For me it is the nicest and may be the best system to control the market as it works in one way with SR lines and I love them most........
hey kawser.... my error, i used a poor choice of words and punctuation,

the difficulty is going to lie in the directional bias decision.... what will be used to determine direction.....

is meant to say,

the difficulty is going to be in the directional bias decision.... what will be used to determine direction ??.....

//-----

writing the ea is the simple part.... that only takes a few minutes..... but to write it i needed a well defined method of determining trend..... maybe the method is in the book, not sure...... the picture posted was a best guess step in that direction....h
to trade and code, keep both simple... no call to impress....h
Quoting hayseed
hey kawser...... the difficulty is going to lie in the directional bias decision.... what will be used to determine direction.....


//-----

as example, just written for this thread........ the ea pictured below will plot 6 fully adjustable quadrants/grids at the users discretion.... or if the user prefers the ea will draw the grids based on it's coding.....

it also will make an reasonable approximation of the trend on all pairs on 6 time frames, if it can.... up or down..... most will be accurate....

//-----

the ea writing...
Mind sharing the indicator where u showed the up/down trend for each time frame ?
The future depends on what we do in the present.
Quoting kawser
Suppose big fall like 3000 pips can wash you if you did not use 1:1 leverage and this is the bad part of this approach and it is better to personalize it with everyone's trading ability as many can get a heartache when he is seeing that his millions is now half in amount.........
One way to reduce this risk is using this approach on pairs with highly correlated currencies, such as EUR and CHF. Of course there is still a residual risk of big movements, but still less than on other pairs.

Rolf
Quoting Xaron
The time frame doesn't matter, those 3-4 weeks were only a example. Price levels are what matter not the time frame.
thanks Xaron great thread you got here! i'll visit often for sure
  • Post #72
  • Quote
  • Edited 12:55pm Sep 15, 2009 1:03am | Edited 12:55pm
Hi, I've been using a similar method in one of my accounts prior to reading BWILC. It involves taking a basic fundamental view, in my case it relates to any AUD pair seeing as I live here and its easy to see what is going on politically and economically. Using low leverage I put a position on, i wait a day or two to see what happens and what develops, if I'm already with the trend I look to keep buying smallish positions as it moves in my favour trying to keep with the trend. If it goes against me I wait for the move to look extended in that direction. I then try to average in at a better price when I see price divergence and essentially pick the top/bottom and then I want to hold _a_ position for as long as I can then while also reducing my risk along the way. I think its similar to Poker in that you wait until you get a decent looking pair. Once you have it you then play the table and try to extract as much money as you can, when you can. I think the hardest thing about this method is when averaging in it can be difficult psychologically when adding to a losing position. Say your unrealised p&l is at 5% you have to be comfortable enough in buying increasingly extended high and lows. Its not much good just buying the breakout in your direction at that time because you are trying to increasing you position size, better your price and hence your draw down pain may possibly increase. So scaling in with the right position sizes and at the right times can be difficult. I also use disaster stops which is usually 1-2% of my NAV on any one position. Oh and I also use correlated pairs in order to hedge my exposure if I think I need to. And while I was using this method prior to reading about BWILC I do think he has helped me refine is somewhat.

Anyway, GL.
grist for the mill
I now think about to go long in the Yen as the new gov of Japan isn't that intervention friendly anymore. Heck I even can imagine to see the USD/JPY below 70 now.

Just added a new short in the Euro at 1.4750. Enough is enough. My Dollar longs start to hurt, sitting on a floating loss of about 6-7%.

Don't get me wrong. I expect to see the Euro at 1.50-60 till the end of this year but this rally went too fast too far. I can imagine at least some verbal intervention from the ECB soon and so a decent dip.
There are bank bailout matters in Ireland and headlines about bank capitalization matters in France this morning and the Euro continues to climb... Strange.
Quoting FxOptimus
Hello,

Interesting approach. One quick question.
The way I see it,it is essential to put the median in the right spot,because the quardants and consequently your trading is related to that.
So how do you determine where your median should be?

Thanky you
The median is just the middle. Nothing fancy here. The borders are usually the last major support and resistance zones.
Quoting kawser
And it would be very nice from you if you could kindly spot some light on profit taking arena as this is the most important part in any trading system though this is not a system like others.........
Simply this system catches the bigger pips as it works with one kind of support and resistance ..........
Nothing magic here as well. There are the smaller trades where I take 30-60 pips here and there. The bigger ones should be multiples of that so 120-240 pips or more. That's the way I do it. I often set TPs right below/above resistance/support areas.
Quoting kawser
And for up bias I use the analysis of median grid of last two months........If the running median grid is up than last month's median grid then I take it the bias is long and I don't care then fundamentals of pairs............
That's a good way of doing it. I often use simple higher highs / higher lows for up trends and if the price closes below the last recent (important) low I have to rethink my directional view. You can trade this approach without any fundamentals.
  • Post #77
  • Quote
  • Edited 3:54am Sep 17, 2009 3:41am | Edited 3:54am
Quoting Xaron
I now think about to go long in the Yen as the new gov of Japan isn't that intervention friendly anymore. Heck I even can imagine to see the USD/JPY below 70 now.

Just added a new short in the Euro at 1.4750. Enough is enough. My Dollar longs start to hurt, sitting on a floating loss of about 6-7%.

Don't get me wrong. I expect to see the Euro at 1.50-60 till the end of this year but this rally went too fast too far. I can imagine at least some verbal intervention from the ECB soon and so a decent dip.
There are bank bailout matters in...
I would not expect much upside from usdjpy for some time. These are the important stories I have gathered from today regarding USD and JPY I don't see JPY weakening anytime soon.

Looks like USD is the new JPY. LOL for the carry. Now the US ought to get on the ball and start exporting everything we can. While we are cheap and nasty.

EDIT: and then this one, it's like standing in front of a train. Don't forget JPY options expirations also

743 GMT [Dow Jones] USD/JPY declines as non-Japanese players sell in reaction to BOJ Gov.
Shirakawa's remarks, says senior dealer at major bank in Tokyo. Shirakawa's comments "a stronger yen may boost the economy in the long term," taken as tolerance of stronger yen, while "corporate
funding conditions show signs of recovery" suggests BOJ may start mulling unwinding extraordinary
steps in coming months. Dealer says "comments were a bit hawkish." Pair may fall to 90.00 vs last
90.68. (TMO)
Attached File(s)
File Type: txt 091709 news.txt   11 KB | 309 downloads
Xaron,
I am working hugely with this system in lower time frame like weekly median grid as for me and I got that monthly bias is too high sometimes and wash away money like in last EU fall..........

In this case I use weekly pivot and daily pivot......Like if the weekly pivot is up and price is trading under lower range of weekly support then we shall add position .............The thing is totally like monthly I am using it in weekly back testing ..............To be wrong in monthly pivot is very normal ........

BTW my idea is only for me........sharing with you as you can make some comment on this...............

Regards
kawser
Thanks smjones! I've heard about that as well. But the USD as carry funding currency will find a quick end as soon as the FED starts their rate hiking circle. It might be enough if they even only talk about it.
Quoting Xaron
Thanks smjones! I've heard about that as well. But the USD as carry funding currency will find a quick end as soon as the FED starts their rate hiking circle. It might be enough if they even only talk about it.
Agreed, just a bit painful now to try and long USD. Once even the discussion slightly turns hawkish, all bets are off.
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