The Grid Hedge Method

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Nadeem
1851
Nadeem  

This Grid Hedge trading method is a 100% mechanical and 'set&forget' system. It assumes that the market cannot remain still at the same place all the time, but it has to move... It always needs to move. So, we are emphasizing on this volatility in the markets to make some money.

1. We need to have an account with a broker which allow us to hedge our positions (have buy and sell positions at same time)

2. We will be trading only the EURUSD and only place orders between 22:00GMT and 0:00GMT, adjust the time according to your broker time.

3. We place 5 orders, each 20 pips away from the earlier one. We place 5 pending order for Buy and 5 pending order for sell. Each 20 pips away. They should all be consecutive and start from the current price. For example, if the price is 1.4572 you would enter 5 orders to buy at the following prices, 1.4580, 1.4600, 1.4620, 1.4640, and 1.4660.. and you would enter 5 orders to sell at the following prices 1.5550, 1,5530, 1.5510, 1.5490 and 1.5470. As you can see, all orders are consecutive and follows one another. On one side we have all the buy orders and on the other side, we have all the sell orders. Try to visualize this and it will become more clear for you.

4. We are not going to place any stoploss or takeprofit on any of these orders. We just place these orders and leave them. We come and look at them only the next day at the prescribed time.

5. Money management is the key in these type of systems so we are going to use the SAME amount of units(lots) in each of these orders. It is advisable that we use the smallest lots amount (0.1 or 0.01) the broker provides initially and increase these lots as the account increases and grows. This should render the method the safest possible by limiting the losses as well as the drawdown the balance might experience.

6. When you come the next day, there are different scenarios that you can expect to see such as, all buy orders are triggered and in profit, mixed buy and sell triggered but overall in profit although some orders are in negative... most of the time, you will be seeing profits especially when the market is subject to some big moves. What you have to do is, at the prescribes time, if you come and see the combined orders to be in profit, be it 50 or 500, you take them and close ALL the orders. Then repeat step 1 again.

7. There are times when you will be forced to suffer a loss, this happen if all the buy and sell orders has been triggered. however, the loss will not be that much as the orders will be in hedge. This scenario should be expected and this is where the money management will prove to be very helpful in limiting the loss as well.

As you can see, this is a fairly simple and easy system to work with. GO on and have some weeks of practice on a demo account to gauge the profit potential of this method and if you feel confident with it, then you can of course decide to go and trade you live account with this method. Please share your experience and suggestions to improve this simple method. Comments are welcomed. Good luck

desander
344
desander  

Looks nice to give it a try,

thanks.

Gilbert.

Ariho Paul
10
Ariho Paul  

Do u have an EA that does this????? if u do can u pliz post it?Thx

bossxero:
This Grid Hedge trading method is a 100% mechanical and 'set&forget' system. It assumes that the market cannot remain still at the same place all the time, but it has to move... It always needs to move. So, we are emphasizing on this volatility in the markets to make some money.1. We need to have an account with a broker which allow us to hedge our positions (have buy and sell positions at same time)2. We will be trading only the EURUSD and only place orders between 22:00GMT and 0:00GMT, adjust the time according to your broker time.3. We place 5 orders, each 20 pips away from the earlier one. We place 5 pending order for Buy and 5 pending order for sell. Each 20 pips away. They should all be consecutive and start from the current price. For example, if the price is 1.4572 you would enter 5 orders to buy at the following prices, 1.4580, 1.4600, 1.4620, 1.4640, and 1.4660.. and you would enter 5 orders to sell at the following prices 1.5550, 1,5530, 1.5510, 1.5490 and 1.5470. As you can see, all orders are consecutive and follows one another. On one side we have all the buy orders and on the other side, we have all the sell orders. Try to visualize this and it will become more clear for you.4. We are not going to place any stoploss or takeprofit on any of these orders. We just place these orders and leave them. We come and look at them only the next day at the prescribed time.5. Money management is the key in these type of systems so we are going to use the SAME amount of units(lots) in each of these orders. It is advisable that we use the smallest lots amount (0.1 or 0.01) the broker provides initially and increase these lots as the account increases and grows. This should render the method the safest possible by limiting the losses as well as the drawdown the balance might experience.6. When you come the next day, there are different scenarios that you can expect to see such as, all buy orders are triggered and in profit, mixed buy and sell triggered but overall in profit although some orders are in negative... most of the time, you will be seeing profits especially when the market is subject to some big moves. What you have to do is, at the prescribes time, if you come and see the combined orders to be in profit, be it 50 or 500, you take them and close ALL the orders. Then repeat step 1 again.7. There are times when you will be forced to suffer a loss, this happen if all the buy and sell orders has been triggered. however, the loss will not be that much as the orders will be in hedge. This scenario should be expected and this is where the money management will prove to be very helpful in limiting the loss as well.As you can see, this is a fairly simple and easy system to work with. GO on and have some weeks of practice on a demo account to gauge the profit potential of this method and if you feel confident with it, then you can of course decide to go and trade you live account with this method. Please share your experience and suggestions to improve this simple method. Comments are welcomed. Good luck
onemorepip1
5
onemorepip1  

awesome thanks i will give it a try.

nagarajnow
4
nagarajnow  

WHen visualizing it looks great. But also may risk be there when 100pips+ fluctuations are there..

Expert4x
3
Expert4x  

I have been trading Forex for 10 years and have used the grid system for 6 of these years. It has been profitable for me if as I stick to the following rules:

  • Trade with grid gaps of 250 to 500 pips - anything smaller will kill your account.
  • Has a stop - I get out when the price reaches the 4th grid level and then I start again.
  • Currency selection is key.
There are a few good videos freely available on Youtube which you may find useful.

I hope this give you some more information on the no stop, hedged, grid trading.

I look forward to any comments

huqenamul
437
huqenamul  

Hi friend, I am newbie in this forum. I want to learn forex trading well and want to share my trading experience here. I believe I can make a good friendship with all of you

chamane
135
chamane  
Expert4x:
I have been trading Forex for 10 years and have used the grid system for 6 of these years. It has been profitable for me if as I stick to the following rules:
  • Trade with grid gaps of 250 to 500 pips - anything smaller will kill your account.
  • Has a stop - I get out when the price reaches the 4th grid level and then I start again.
  • Currency selection is key.
There are a few good videos freely available on Youtube which you may find useful. I hope this give you some more information on the no stop, hedged, grid trading. I look forward to any comments

Hi. I would like to know if you increase the gap size and number of lots after reaching each level. Also, what pairs give you the best results? Are there indicators helping to choose the best pairs and gaps to use? Thanks.

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