Discussion: Best approach to filter Grid entries during high volatility (News/Crashes)؟

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Hi everyone,

We all know the "Golden Rule" of Grid systems: They print money in ranging markets, but one strong trend or "Black Swan" event can wipe out months of profits.

I am currently developing a logic to solve the "Drawdown Death Spiral" on volatile pairs like XAUUSD, and I wanted to start a discussion on the most effective filtering methods.

The approaches I am currently testing:

  1. ATR-Based Dynamic Distance: Instead of a fixed step (e.g., 20 pips), the distance between orders expands based on the ATR (Average True Range).

    • Hypothesis: If the market is moving fast (High Volatility), the grid stretches to avoid stacking orders too close to each other.

  2. Trend Filtering (MA Cross): Disabling "Buy" orders if the price is significantly below a slow Moving Average. Basically, trying not to "catch a falling knife."

  3. Time/News Filters: Simply turning off the EA during High Impact News folders.

My Question to the experienced devs here: In your experience, is it better to pause the Grid completely during high volatility, or is it better to let it trade but with wider dynamic spacing (ATR)?

I have noticed that pausing often leads to missing the "rebound" (recovery), while dynamic spacing handles the drawdown better but requires more margin.

I’m curious to hear your thoughts or see how you handle this in your own systems.

Let's discuss

 
Abdullah Saeed M Alarawi:

I removed the image attached to your post that mentioned a market product. It's irrelevant to the text of your post, and discussion of market products is not allowed on the forum.

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