I was eye balling some 1min Eurusd charts over the last week when I had an idea that I'm sure its not new. Grid trading is something that is around some quite a while, althougth I never was able to find a profitable system using this kind of trading.
After some readings on probability theory, martingale systems, etc... I opened a chart and set it up with a grid using the sweetspotsGOLD indicator, using a 10 pips spacing between lines and watched where the price crossed those lines. The signals that could give me entries looked very noisy, full of spikes, etc... It didn't looked good.
Then I used a 2 periods simple moving average to filter some of those false signals, it looked better.
I them did some paper trading using those signals, some were good days, some weren't... How could I solve those bad days?
How about a risky martingale system?
I decided to try. It worked quite well, and I never had to use more than 5 martingale levels, doubling the lot size when a loss occurred. (Although I'm sure it will probably happen...)
After some hours paper trading I decided to search for a tool that could ease my work, I've found several grid trading EA's, but none was able to satisfy the conditions of my idea.
I hoped I could test it for at least a year before I make any requests on tools (Ea's, etc...) but paper trading at least one year on 1min charts its quite boring. I decided then to turn to FF users, maybe someone have a EA, or knows one that I could use to test this idea more easily.
So here it goes:
1. The orders are not executed on the grid lines, those only exist to give us direction on the trade.
2. A order is only open when the moving average crosses the line and the candle that made those cross close. (Chart#1)
3. Risk:Reward is one to one.
Assuming a typical spread of 1.8 pips (eurusd on Alpari Uk)
Take profits and stoplosses should be 11.8 pips.
4. Once a order is opened, all other crosses are ignored and there's only two possible outcomes. Profit, or loss. (Chart#1)
5. To reduce losses to a minimum, the option of a partial close of the order looks like a good idea...
6. When a profit taking or stoploss level is hit, if the candle that reaches that level made a new cross, a new order should be open at the close of that candle. (Chart#2, #3)
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The Martingale stuff...
Each time a stoploss level is hit and a new order is open, this new order should have twice the size in order to cover the previous loss. (Chart #4)
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I though in this system not really as a "money maker", or solo trading system for an account as I plan to use it with the minimum lot size available on any account. 0.01 for micros.
This system can be used, if it proves it's self profitable as a equity curve smother, generating small profits along the way.
-----------
Well, I hope my incredibly small English skills were enough to explain what the original idea was all about and I sincerely hope that someone could point me in the right direction, finding a EA I can use to test this idea, or even helping me to develop one (as my coding skills are "0").
In the worst case scenario I will test this manually.
Thanks in advance, and... Let the force be with you all!
After some readings on probability theory, martingale systems, etc... I opened a chart and set it up with a grid using the sweetspotsGOLD indicator, using a 10 pips spacing between lines and watched where the price crossed those lines. The signals that could give me entries looked very noisy, full of spikes, etc... It didn't looked good.
Then I used a 2 periods simple moving average to filter some of those false signals, it looked better.
I them did some paper trading using those signals, some were good days, some weren't... How could I solve those bad days?
How about a risky martingale system?
I decided to try. It worked quite well, and I never had to use more than 5 martingale levels, doubling the lot size when a loss occurred. (Although I'm sure it will probably happen...)
After some hours paper trading I decided to search for a tool that could ease my work, I've found several grid trading EA's, but none was able to satisfy the conditions of my idea.
I hoped I could test it for at least a year before I make any requests on tools (Ea's, etc...) but paper trading at least one year on 1min charts its quite boring. I decided then to turn to FF users, maybe someone have a EA, or knows one that I could use to test this idea more easily.
So here it goes:
1. The orders are not executed on the grid lines, those only exist to give us direction on the trade.
2. A order is only open when the moving average crosses the line and the candle that made those cross close. (Chart#1)
3. Risk:Reward is one to one.
Assuming a typical spread of 1.8 pips (eurusd on Alpari Uk)
Take profits and stoplosses should be 11.8 pips.
4. Once a order is opened, all other crosses are ignored and there's only two possible outcomes. Profit, or loss. (Chart#1)
5. To reduce losses to a minimum, the option of a partial close of the order looks like a good idea...
6. When a profit taking or stoploss level is hit, if the candle that reaches that level made a new cross, a new order should be open at the close of that candle. (Chart#2, #3)
-----------
The Martingale stuff...
Each time a stoploss level is hit and a new order is open, this new order should have twice the size in order to cover the previous loss. (Chart #4)
-----------
I though in this system not really as a "money maker", or solo trading system for an account as I plan to use it with the minimum lot size available on any account. 0.01 for micros.
This system can be used, if it proves it's self profitable as a equity curve smother, generating small profits along the way.
-----------
Well, I hope my incredibly small English skills were enough to explain what the original idea was all about and I sincerely hope that someone could point me in the right direction, finding a EA I can use to test this idea, or even helping me to develop one (as my coding skills are "0").
In the worst case scenario I will test this manually.
Thanks in advance, and... Let the force be with you all!
