Why (Burning) Grid Systems aren't Evil

🔥 Chapter 1 – Introduction

Grid trading systems have long been favored by traders—especially for their ability to profit from volatile, sideways markets. But when deployed over longer periods or with increasing capital, many classic EAs reveal massive weaknesses that are insufficiently addressed.

❌ Common Issues with Classic Grid Systems:

• Endless averaging without a defined exit point
  → Markets run "against the grid"—new trades are added until the account is liquidated.

• Martingale logic with exponentially increasing position sizes
  → High mathematical risk, often hidden in the code

• No true risk management
  → No strategic or portfolio-level stop-loss control

• Not compatible with prop firm rules
  → No drawdown control, no behavioral patterns, no strategy diversification

• Multi-grid systems without currency filters
  → Losses accumulate uncontrollably across pairs sharing the same base currency (e.g., USD)

💡 Why Burning Grid?

Burning Grid EA was developed specifically in response to these weaknesses. The goal was a completely restructured grid approach that:

• Uses clearly defined strategies with limited risk per symbol

• Eliminates Martingale logic entirely

• Integrates strategic exit points with accepted losses

• Offers fully configurable risk management on both account and currency level

• And is prop firm ready, including entry point randomization

🔘 The result is a system that is controllable, scalable, and institutionally deployable—without the typical flaws of legacy grid bots.

⚙️ Chapter 2 – Strategy Logic & Risk Modeling

2.1 Fixed Strategies per Symbol & Risk Profile

Burning Grid operates with predefined, clearly structured strategies. Depending on the selected risk profile (Low / Medium / High), about two strategies per symbol are activated simultaneously. These strategies vary in entry logic, grid structure, and exit logic but are non-adaptive and never use Martingale mechanics.

2.2 Strategic Exit Logic with Controlled Loss

Each strategy has a predefined exit point. If the market moves unfavorably, the position is closed at a controlled loss. The maximum loss is strictly limited by the assigned capital risk (e.g., 1% per Buy strategy).

2.3 Lot Size Calculation – Purely Risk-Based

Position sizing is based solely on the assigned capital risk (in %). Market parameters like spread or volatility have no influence. This ensures consistent and transparent position sizes across all strategies.

🛡️ Chapter 3 – Execution Filters & Drawdown Control

3.1 News Filter Instead of Time Sessions

Burning Grid does not use a session filter or trading time window. Instead, it includes a news filter that prevents new trades before high-impact events. This reduces volatility risks and avoids unexpected market behavior.

3.2 Account- and Currency-Based Drawdown Protection

A core strength of Burning Grid is its dual-level drawdown protection:

• Account Drawdown (in %): A global ceiling ensures that losses remain within the predefined max loss value.

• Currency Drawdown Filter: The user can define a max drawdown (e.g., 10%) for any base currency. When triggered:

  • All open trades in that currency are closed

  • New trades for that currency are blocked for 24 hours

This allows better control over correlation risks—e.g., simultaneous exposure to USD via AUDUSD, USDJPY, and USDCAD.

🧠 Chapter 4 – Backtests & Performance Evaluation

4.1 Backtest Setup & Methodology

Burning Grid was tested with realistic market data:

• Timeframe: 1-minute OHLC (no tick simulation)

• Source: IC Trading Live Account (Raw Spread)

• Risk Presets: 1% per Buy/Sell strategy across all profiles (Low / Medium / High)

No curve fitting or optimization was applied—presets remained fixed across all pairs.

4.2 Key Metrics (Medium Risk Profile Example)

• Net Profit: $1,2040,010.15

• Profit Factor: 2.82

• Max Balance Drawdown: 4.01%

• Win Rate: 92.44%

• Sharpe Ratio: 3.09

• Period: 2020–2024

4.3 Drawdown Behavior & Equity Curve

The drawdown behavior remains linear and manageable—even in adverse conditions. The absence of a Martingale effect is clearly visible.

4.4 Forward Tests & Live Execution

Initial demo forward tests confirmed live compatibility:

• Consistent behavior under real spreads

• No order slippage or anomalies

• Realistic equity and risk progression

4.5 Live Signal Performance (MQL5)

Burning Grid is verified in live conditions through three official MQL5 signals:

🔹 Low Risk

• Growth: 73%

• Profit: €382.15

• Max DD: 13.25%

• Profit Factor: 24.54

• Trades: 347

• Win Rate: 99.42%

• Signal

🔹 Medium Risk

• Growth: 140%

• Profit: €734.46

• Max DD: 19.77%

• Profit Factor: 21.58

• Trades: 641

• Win Rate: 99.37%

• Signal

🔹 High Risk

• Growth: 201%

• Profit: €1,054.61

• Max DD: 26.57%

• Profit Factor: 20.42

• Trades: 840

• Win Rate: 98.82%

• Signal

🧩 Chapter 5 – Interface, Setup & Expert Mode

5.1 EA Interface

Clear logic, color coding, and presets make configuration easy even for beginners. Each section can be collapsed or fully expanded for control.

5.2 Prop Firm Ready

Burning Grid is designed with prop firm requirements in mind:

• Clean risk modeling without hidden scaling

• No latency tricks or delayed orders

• Optional "Prop Firm Randomizer" shifts entry points slightly per strategy and pair, preventing pattern detection and ensuring behavioral uniqueness

5.3 Presets & Advanced Control

Advanced users can override the global EA settings for any specific pair:

• Force Low/Medium/High profile for a symbol

• Customize Spread or Buy/Sell Risk %

• Set to "Off" for complete deactivation of the pair

This allows granular pair-level control for fine-tuning.

5.4 Visual Dashboard – Real-Time Risk Monitoring

Burning Grid's dashboard visualizes live trading conditions:

• Active strategies per symbol

• Current exposure and drawdowns

• Capital utilization and equity status

• Account- and currency-level stop loss zones

Color signals and structured layout allow instant overview and fast decision-making.

✅ Chapter 6 – Final Thoughts & Call to Action

Burning Grid EA offers a new way to trade grids:

• Structured, risk-limited strategies

• No Martingale, no unlimited exposure

• Backed by verified live performance

• Full compatibility with prop firm challenges

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🟢 Whether you're a private trader or preparing for a firm evaluation—Burning Grid provides a strategic edge without compromise.

🛒 Burning Grid on MQL5 Marketplace - https://www.mql5.com/en/market/product/135273
💬 Join the Community & Support Group - https://www.mql5.com/en/messages/0151274c579fdb01

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