This is a screen shot of Eur Usd. As I have already mentioned it is not even remotely one of my favourite pairs. I am only putting it up to make a point- That my system is capable of atleast breaking even even in most hostile environments.
A few of our entry criteria
1. The 21 SMA is used as a direction finder- if price is above the sma we sell. If below the sma we buy.
2.Grid size- Depends on risk tolerance and size of account. For a pair as volatile as EurUsd I would use 2000 pips (5 digit broker). However, here I used only 1000pips for the grid. Too small if I was live.
3. Buffer zone- depending on the volatility of the pair. Quiet pairs I start at the first level. Medium volatility pairs I start at the second level to make my first entry. For high volatility pairs like this one I would start at the 3rd grid level to make the first trade. Again, just to make my point, I'm starting at the 2nd level.
4. Max level- If you are bold enough to go for a volative, trendy pair like EurUsd, then you should have more means (account balance) than just 7 levels. Say 8 or 9. Here again I still limited it to 7 levels only.
Results.
Account at risk: 128
All trades (11) won. Only the last is still in progress.
Total profit: 265
% profit 207%. And the year is not over yet.
Controversies
The trade marked out in the screen L7 is arguably contestable. If it is judged as a loss then we only just broke even.(137-128)
If judged as a win then it alone doubled the size of our account.
Another issue is that the moving average moves over time and may not be exactly where it is at the time of the trade. There's nothing I can do about that in back test but in live trading it has not proven to be very different in real terms.
And this is supposed to be one of my worst pairs!
King.
A few of our entry criteria
1. The 21 SMA is used as a direction finder- if price is above the sma we sell. If below the sma we buy.
2.Grid size- Depends on risk tolerance and size of account. For a pair as volatile as EurUsd I would use 2000 pips (5 digit broker). However, here I used only 1000pips for the grid. Too small if I was live.
3. Buffer zone- depending on the volatility of the pair. Quiet pairs I start at the first level. Medium volatility pairs I start at the second level to make my first entry. For high volatility pairs like this one I would start at the 3rd grid level to make the first trade. Again, just to make my point, I'm starting at the 2nd level.
4. Max level- If you are bold enough to go for a volative, trendy pair like EurUsd, then you should have more means (account balance) than just 7 levels. Say 8 or 9. Here again I still limited it to 7 levels only.
Results.
Account at risk: 128
All trades (11) won. Only the last is still in progress.
Total profit: 265
% profit 207%. And the year is not over yet.
Controversies
The trade marked out in the screen L7 is arguably contestable. If it is judged as a loss then we only just broke even.(137-128)
If judged as a win then it alone doubled the size of our account.
Another issue is that the moving average moves over time and may not be exactly where it is at the time of the trade. There's nothing I can do about that in back test but in live trading it has not proven to be very different in real terms.
And this is supposed to be one of my worst pairs!
King.