Self Correcting Grid Idea - page 2
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What forum exactly? just to read the rules!!
Sorry , I wasnt sure if I was allowed to mention another site but since someone else already said so, its all goooood!
Question 1
What is generally is the biggest problem with grid trading systems, in your experience be it demo or live?
There seem to be only two problems. Drawdawn and negative swap charges. I use Robominer but I only trade above 1.24 sell and buy bellow 1.24.
I also use makegridv197 to trade the bottom of the grid for example EUR/CHF and CAD/GBP at the moment. Buy every 3 pips - profit at 15 lot size 0.01 and I limit size of the grid. You have to know the risk it could be 16,000 or more but you can make about 2000 monthly. This way I build up positive swap charges and limit drawdaw. I also monitor USD/CHF and other charts for bottom but I only get into trades if it is positive swaps.
I make about 3000 - 4000 monthly.
Thanks for the reply pmacel
Yes drawdown can be a big factor not only with grid but any trading system.
I am glad you have found a method that works for you.
Am I correct in thinking that if price moves outside of what is the demend the current full range of the pair, if the grid system is based on a range they start to run into problems.
What is "self correcting"?
What is "self correcting"?
Yes, I was curious about that, too.
Also, in answer to your question about the main problems with grid systems, it depends on what the grid strategy is. Some grid systems are designed to catch a trend, and do well when the market makes big moves (not unlike a channel breakout system). With this type of systems, whipsaws are the big killer; when the market keeps changing directions without really going anywhere.
Other grid systems are fading the trend, banking on pullbacks to make profit. These systems are destroyed by large market moves - as was pointed out by another - because of the huge drawdown that is incurred while waiting for the expected pullback.
Choose your poison, as they say!
DTM
Choose your poison, as they say!
DTM
Lol
SCG is my mathmatical way of creating a grid system that adpts to each pair, so the distance between positions differs with each pair if price moves out side the pairs current full range ie the highest high - lowest low the grid will be recalculated
Because the distance between positions is different the number of positions is also different. and there for the account balance required to trade each pair is different.
I know that I have not given you to much infomation about the actual math behind this method but there are no indicator and the method is not effected by trend or wipsaw.
It is by no mean perfect and is still a work in progress.
Interesting, but does it try to catch the trend, like a breakout system or does it try to fade the trend, like a reversion or pullback system?
the idea may be sound
BUT
there is transaction cost -- and in real (not demo) live account, the broker will not give you all the precise price level for entry -- they will blame on SKIPPAGE during volatile period
and the transaction cost may be large enough or volatility within one candle bar could be high enough to make this system -- provide minimal LOSS, rather than guarantee Profit for long run
and I do understand the fuss to set it up -- manually (and enter at least one number there) then copy and paste all the "boundaries" --- consider to buy a copy and paste mouse ! a bit easier -- and try it in LIVE real account and tell us -- will the broker allow you to do so !