Here is an idea to make the grid trading as safe as possible.
Grid Size = Average Daily Range (30 days) / 2 (Large Grid)
Lot Size Increase = The necessary lotsize to reach --> Sqrt(number of trades open) * Initial trade Expected Profit in Dollars
With this method the lotsize is not multiplied with a fixed ratio, rather it is dependent with the risk. The more trades you place the less expected profit. But with every exit the profit will always be positive.
This method will reduce the DD drastically and therefore reducing the chance of going bust.
{quote} That accumulation of trades in the wrong side is what we are dealing with, by almost balancing out the opposing lots so that the wrong trades are well covered by using higher lots in the 'right trades'. That's the only trick we want to address, and which we are advancing towards achieving..
