Sound Grid System - Hybrid or something

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bhale
119
bhale  

I have been intrigued by gri sytems, but can't reconcile the possible disaster scenarios. While looking at possible safe solutions, I came accross something that seems to work rather well. I have backtested for about 3 weeks visually. The only caveat is that you need to be paying attention. This is not a set and go system, you have to be at the screen.

You should start just before the London or New York open, sat about 30 minutes. Look at the price, and set buy stops and sell stops. First buy/sell stop around 10 to 15 pips from current price. Set take profit at +/- 20 pips. Set another set of buy/sell stops at the other take profits, and add a take profit of 20 pips on these. Now wait and see what happens. As each 20 pip target is reached, you have antoher one open in the direction of the last trade. Only open 3 of thes and quit opening in that direction. Another thing to do is when you reach a target, cancel the opposite orders and add one 20 pips away from where you reahched your last target. Do not use stops or close any orders until trading is over. My method is to quite after about 5 or 6 hrs.

I will give you an example in the next post. So far, no losses, and profits from 20 to 80 pips a day.

bhale
119
bhale  

Example GBPUSD:

Price at start = 1.2003.

Enter buy stops at 1.2015 TP @1.2035, and 1.2035 TP @ 1.2055

Enter sell stops at 1.9995 TP @ 1.9975, and 1.9975 TP @ 1.9955

Price moves up and is now at 1.2040.

I have a 20 pip profit on first buy. Now cancel sell stop at 1.9975 and set one at 1.2015, TP @ 1.9995

Price moves up to 1.2050 but reverses and comes back to 1.2010. I now have a ling at 1.2035 and a short at 1.2015.

Price moves down through 1.9985 and reverses. Now I have antoher 20 pip profit, and am short at 1.9995 and still long at 1.2035. I have put in a buy stop at 1.2015.

Price rolls around and settles around 1.2005 noon EST, so I am ready to quit for the day. At this point I have 60 pips in profit. I am long @1.2035 fro a 20 pip loss and short at 1.9995 for a 10 pip loss.

Total for the day + 30 pips.

This is just an example and some days are breakeven or small wins, and some days are big.

I paper traded GBP/JPY from 7 am EST and am ready to quit now, price is around 237.75, I have 4 20 pip trades for +80, but I am long at 238.25 and 237.85, so those are down 60 pips total, ending the day with 20 pips. If I had decided to quit insted of going long the last trade and closing when the last long reached 236.85, I would have been up 40 pips for the day.

bhale
119
bhale  

I would love to have a script that ran to do this automatically. If you want to shoot hoels in this, do a little backtesting visually, and let me know what you think.

bhale
119
bhale  

Today with GBPUSD you would be long at 1.9930 and short at 1.9910, with no targets hit. If you closed out now @ 1.9890, you would be -40 + 20 = -20 for the day. If you had played the London session you would be a big winner, but sticking to rules about not opening more than 3 down, it's only 60 pips. Here is where an automated script would work great.

mpd004
7
mpd004  

missing 20 pips?

On reading your example trade, I see where you got the 1st 20 pips (1.2015 long) and I see where you got the 2nd 20 pips (short 1.2015) but I don't see where you got the 3rd 20 for the 60 pip win. Am I missing something here? Maybe it's been too long a day for me.

Bob C.

bhale
119
bhale  

YOu're right. I have a hard time explaining the system. It works best on GBPJPY, but if I'm going to trade this, I have to find another broker cause mine charges 9 pips and that sucks.

suncarrot
11
suncarrot  
bhale:
Example GBPUSD:

Price at start = 1.2003.

Enter buy stops at 1.2015 TP @1.2035, and 1.2035 TP @ 1.2055

Enter sell stops at 1.9995 TP @ 1.9975, and 1.9975 TP @ 1.9955

Price moves up and is now at 1.2040.

I have a 20 pip profit on first buy. Now cancel sell stop at 1.9975 and set one at 1.2015, TP @ 1.9995

Price moves up to 1.2050 but reverses and comes back to 1.2010. I now have a ling at 1.2035 and a short at 1.2015.

Price moves down through 1.9985 and reverses. Now I have antoher 20 pip profit, and am short at 1.9995 and still long at 1.2035. I have put in a buy stop at 1.2015.

Price rolls around and settles around 1.2005 noon EST, so I am ready to quit for the day. At this point I have 60 pips in profit. I am long @1.2035 fro a 20 pip loss and short at 1.9995 for a 10 pip loss.

Total for the day + 30 pips.

This is just an example and some days are breakeven or small wins, and some days are big.

I paper traded GBP/JPY from 7 am EST and am ready to quit now, price is around 237.75, I have 4 20 pip trades for +80, but I am long at 238.25 and 237.85, so those are down 60 pips total, ending the day with 20 pips. If I had decided to quit insted of going long the last trade and closing when the last long reached 236.85, I would have been up 40 pips for the day.

I agree with mpd004! At this example you only got +40 pips in your hand. But you have more than -40 pips are still in pending! Because the 2 pending orders' range is 40 pips and they still have spreads! If you don't set SL and wait till you close all these orders, you will lose all your 40 pips plus the spreads! So in this day you lose. How could you say your system is no losses, and profits from 20 to 80 pips a day?

mpd004
7
mpd004  

missing 20 pips

Please, don't get me wrong here, I am not trying to find anything wrong with your thinking. It is kinda confusing when you're trying to explain in just typing it and I think you felt the same when you were doing it. I find it very interesting and will be taking a closer look over the weekend. Hope to paper test some trades first of the week.

Bob C.

suncarrot
11
suncarrot  

And your no losing system is based on the 1st trade would have hitted it's target. But if the 1st open order didn't hit it's target and started reversing, then hit the opposite order's opening price. You will lose more than 20 pips at first, even one order of both hit it's target, it still can not cover the -40 pips loses by another order! So what will you do to make these loses to win?

suncarrot
11
suncarrot  

Maybe I am wrong that misunderstanding what's your meaning. I know that it's hard for you to explain your system clearly and I appreciate for your sharing! Maybe you could give us your daily performance lists and show us how you doing then we can make an exact EA for you.

mpd004
7
mpd004  

missing 20 pips

Maybe we should take this a little slower and actually paper trade a few days. On it's face, it sounds good. The proof on whether it's a sound system or has merit will come to the surface after a few days. I'd like to see for myself and then maybe make some suggestions on how to improve it or declare to myself that it's invalid. Just my coupla cents.

Bob C.

12
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