Forex hedge grid

Is this forex hedge grid method viable? ie no need to use stops
eg http://www.forextrading-alerts.com/GRIDSystem.html,
eg

was wondering, what if it keeps moving in one direction...then i would have a lot of losses. just don't see how its viable?

Yes the problem is a strong trend without the required retracement, using the video example say it continues higher to the next 200 pip grid line instead of retracing your be in -200 drawdown

@ grid line 2
positions from start grid +200 (cashed) -400 (open)
positions from grid line 1 +200 (cashed) -200 (open)
for a total of -200

Continue this for another couple of grid lines and you can see the huge dangers, say price reaches grid line 4 without the retracement

@ grid line 4
positions from start grid +200 (cashed) -800 (open)
positions from grid line 1 +200 (cashed) -600 (open)
positions from grid line 2 +200 (cashed) -400 (open)
positions from grid line 3 +200 (cashed) -200 (open)
for total of -1200

Hope it makes sense basically your cashing in positive side at every grid line for +200 pips but holding open the negatives hoping for it to retrace, so if trend continues strong then those open negative positions grow larger than the cashed in positives, its seems a very risky method

What if a way is devised such that whenever I cash in on the positive side, I use half of it (or some percentage) to offset the already losing positions? ie, i spend my time clearing those initial losing positions .... ? hope you get what I mean.

Hi ! I think i find it useful during volatile market in daily movement. I have done some adjustment for the technique. Here it is.

Market trend is trending frequently than ranging if volatile is increased. Price will move farther away from origin position either in upward or downward direction.

Rule 1: Trade only in volatile market scenarios
Rule 2: Assign grip pricing (In between 20pips/40pips/50pips or......)
Position Reference: A > B > C > D ......
Short entry: 1.300 > 1.298 > 1.296 > 1.294 .......
Stop loss: 1.304 > 1.302 > 1.300 > 1.298 ......
Target: 1.298 > 1.296 > 1.294 > 1.292 .....

Rule 3: Long and short position together for hedging if trend is reversal. If price move from A to B then reverse to A and move above A, the 1st long entry will be at A. So risk to reward ratio: 2:1

Rule 4: Places all the pending orders before daily start. Recommended between GMT 22:00 and 00:00 (All market is closed)

Rule 5: Monitor the game and place more pending order for above and below current price since some pending orders have been triggered and closed.

If price move further upward, more pending orders have been triggered. At the same time, setup back with short pending orders as long as the grip pricing is covered up without any gap.

I tried this system with an EA. The problem is that in a trending market, you keep hitting the LOSS scenario. The wins you get do not cover the losses yielding a negative equity curve in all my tests. It's hard to predict what pair would yield the best profits since nobody knows what the market will really do.

Instead, I've developed a similar strategy that does not depend on the direction of legs to yield wins. Keep examining various ways to do this and you can develop a profitable system--just not they way he describes.