What is Grid system? What's difference between hedging?

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Erdenebayar Lamjav
1359
Erdenebayar Lamjav  
And what's difference between standard deviation and volatility?
soubra2003
31847
soubra2003  
Simply,

Grid is trading by opening more than a position with different prices in same direction and same pair as I think.

Hedging is to open the opposite position (buy/sell together) to protect the balance. Some times it is in the same pair, sometimes it is with deffirent symbols as experienced techneques.


Mohammed Mounir
1013
Mohammed Mounir  

Grid system like opening trades in SELL or BUY direction and between each trade is amount of pips, the main goal of Grid system is if the direction of the trend continue you still open trades against the trend to recover when the market opposite its direction 

there is also some Grid system use hedging to open trades in both sides 

 For Example: 1st trade is 0.01 sell EURUSD on 1.24100 but the trend goes up and reach 1.24400 you open another trade on 1.24400 by 0.02 but the market still in Bullish and reach 1.24700 and you grid strategy open another 3rd sell position by 0.04 then the market start to bearish and go down till 1.24400 and you close all your trades.

The calculation will be 3rd position 0.04 x 300 pips =  12$ the 2nd position 0.02 x 0 pips = 0$ the 1st position 0.01 x 300 = 3$ total profit will be 9$

Mohammed Mounir
1013
Mohammed Mounir  
I recommend you to read well how grid or martingale systems work as i prefer other systems because the grid or martingale is very dangerous systems that will blow your account if the market trend continue without rebound
soubra2003
31847
soubra2003  
Mohammed Mounir:
I recommend you to read well how grid or martingale systems work as i prefer other systems because the grid or martingale is very dangerous systems that will blow your account if the market trend continue without rebound
Yes, you are right
whiteking
467
whiteking  
I am not trader based on martingale system this is make scared for me because mental not good enough, and prefer trade with simple way using stop loss and target profit or at least using stop loss and let target floating
Mohammed Mounir
1013
Mohammed Mounir  
whiteking:
I am not trader based on martingale system this is make scared for me because mental not good enough, and prefer trade with simple way using stop loss and target profit or at least using stop loss and let target floating
Yeah that's acceptable, I think that trading is simple and can profit from Forex market if we trade with the trend not against it 
Thomas Werra
509
Thomas Werra  
Mohammed Mounir:

 For Example: 1st trade is 0.01 sell EURUSD on 1.24100 but the trend goes up and reach 1.24400 you open another trade on 1.24400 by 0.02 but the market still in Bullish and reach 1.24700 and you grid strategy open another 3rd sell position by 0.04 then the market start to bearish and go down till 1.24400 and you close all your trades.

Should be aware that what you describe is a Martingale and Grid mix. A simply Grid doesn't mean to increase Lots necessarily so it's a bit safer to use. But anyway, to not crash your account, the step between the Grid lines should be big enough to also cover up ranging markets or high impact new, which most of the times people seem to forget about.
Mohammed Mounir
1013
Mohammed Mounir  
Thomas Werra:
Should be aware that what you describe is a Martingale and Grid mix. A simply Grid doesn't mean to increase Lots necessarily so it's a bit safer to use. But anyway, to not crash your account, the step between the Grid lines should be big enough to also cover up ranging markets or high impact new, which most of the times people seem to forget about.
yes i know the difference and thank you for clarifying 
Khalil Abokwaik
13465
Khalil Abokwaik  

Most grid systems use fixed pip distance ignoring price action, which makes them risky even without martingale.

Price action sensitive grid systems are much better specially when they fade micro trends in favor of the main trend.

Sugeng Moh Arifin
225
Sugeng Moh Arifin  
I think martingel or grid sistem is not to bad if you have a large capital and you have another technique to recover that one.
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