thread: Can a grid trader survive?

the matter together with grid trading is it cant be back tested. Single trade destiny is based on itself. However, once trading grid the fate of single commerce is based on the following ones that are implemented. Here the endless mixes comes in to play. So any egy made can not be back tested. Only slow/boring forward test is possible. Good fortune

Actually, you are very wrong in what you are saying. If you can't backtest grid trading, then I can only recommend that you find yourself a broker that can give you proper tick feed. I am currently backtesting a grid EA that's bidirectional with hedge. Although looking at my MT4 in visual mode, it is fairly slow. It takes almost 2-3 times for 1 year old information to run at tick mode, but I am doing it.

For anyone's information if it is useful, if you grid trade you would require approximately #500 a 0.01 lot traded so your account does not discount. This is based on a 10 pip bidirectiononal grid hedged at a TP of approximately 100 pips. Although it can be lengthy, it is my belief that grid trading bidirectional at a market on the GBPJPY or equally volatile pair is a no drop system. You merely want deeper pockets to have your cash breaks down to get a great length of time as some hedges do not shut until 4-6 weeks following a Dollar starts. If you are patient though, I think it is a route to financial freedom and a stress free method of trading rather than spending countless hours staring at the screen and to get a less academic that fights with finding a egy that works for them.

Only my 2 pennies even though this thread is very old.

Cheers!

Daniel

should you use run-of-the-mill raped grid egy then you can expect almost 100% fail. To make it workable you need to get rid of the flaws and adapt it to your money management egy.

Agreed! Many Grid EAs are rubbish. I've seen some terrible ones. I am quite fortunate to have everything I have in the moment and it seems to be working for me.

Cheers!

Daniel

quoteI'm currently backtesting a grid EA that is bidirectional with hedge. Although looking at my MT4 in visual mode, it is quite slow. It requires almost 2-3 days for 1 year of data to run at tick mode, but I am doing it.

Though it has nothing to do with the core subject particularly, I can add something here.

The calculation speed (within a given mode) through backtest is no indior for the qualitiy of this tickdata or the qualitiy of this calculation itself. It is pushed by the cpu consumption of the robot mainly. So either a rubbish code and/or a intrie algorithm is the most important reason behind the backtesting speed.

I feel no. You have got to rely on your analysis only and be extremely sober-minded before you open a trade

quote Agreed! Many Grid EAs are crap. I have seen some terrible ones. I am quite fortunate to have everything I have in the present time and it appears to be working for me. Cheers! Daniel

Saw an EA for $30K. .after scrupulous analysis found that it works on S/R amounts 30M timeframe, just well backtests and thoroughly considered MM, LOL.
Same here on my Hotforex free of cost.

After that I don't understand words buy EA

A grid trader is only going to endure if his capital base is $100 000 and begins gridding from 0.01lots on H1 charts...

yield per month must be approximately 5-10% . . .not poor...

of most importance is the grid technique and arrangement. .

Enormous capital is of extreme importance.

I guess it has stronger relation to EA users.

The first thing I must say is that I am a terrible trader! I attempted to understand but I just don't possess the patience, discipline and probably the IQ for a swing or trend trader. Basically I suck something related to reading charts.

So I had to really think how could I be part of this winning 5 percent and also be a terrible trader in the exact same time!
My theory is, that if I had sufficient capital I could grid exchange a tool and capitalize on the back and forth price. Simple right. So I opened a demo account to see if my theory was right.

Here's a link to my results so far:
http://www.fxblue.com/users/951650
As you can see I have a large negative open P/L at this time, I wanted to see what could happen if I got a little reckless with my risk management.
My hints:
Grid trading is much more about money and risk management compared to trading.
Martingale grid systems will blow up your account.
Loe a market that is in the top or at the bottom and exchange bottoms up and top down.
You require discretion to the following reasons:
To let your winners run when they are is a trend
To expand the grid intervals in a trend for your losing rankings
To adjust the lot size, when in the high/low range, you can increase your size and when off, decrease the lot size.

I haven't seen a systematic grid EA, that does all the above so that I think systematic grid trading will fail however I feel a limited managed EA will get the job done.
Rollover fees will build up so loe an instrument with zero rollover.
Have a demo for your own grid and another to check EAs!

I found that grid trading is not as stressful and requires less time reading charts. I feel I've a lot more to learn so sticking with the demo for now and waiting for a tool to reach a new low or high.

I'd say it is all is dependent upon the way in which the grid is placed. You talking about grid that's expecting the tendency to breakout. You all will need to wait for a trend in order to acquire profit.

However about the reversed one?
I mean, you understand that there's a concept of price consolidation, price exhaustion, Fibonacci retracement, swing motion, Fibonacci Arc? So the most important thing is that every price movement is always trying to retract back. So when the price goes down, you have to keep buying instead of selling.
You'll be lost initially, but when the price retracts, you'll be in profit. Does that sounds logical?

Over an infinite number of trades it appears reasonable to assume a Grid trading egy will merely provide the broker with commission ie without an edge it may at best, ie with proper Money Management, be busted even without spread/commission.