As we all know the biggest problem of the grids is that there is a challenge when you are against a big trend. There can be long periods without big trends, but we all know that at some point such trend will ocur. This grid is trying to solve this problem by slowly increasing the volume and increasing the distance bettween the positions.
Here is how it works. It checks for open positions and if there are no buy or sell it opens. Then it takes the lowest buy and highest sell and checks if there is a condition to sell again or buy again.
For exampe the second position can enter after 30 points, the third position can enter after 40 points from the second and so on. The formula for the distance is PositionsCount*Distance. So if you have 1 position and distance set to 20 , the second position will enter after 20 points, the third will enter after 40 , next will enter after 60, 80,100... . For example after 500 points there will be a small exposition , with slowly increasing lots.The lot increment formula is StartLot+StartLot*LotsIncrement*TotalBuyPositions.
The next important thing is choosing the right currency or set of currencies(you can use it over several different instruments). There is no need to trade the majors. You can always choose a cross which stays much longer in rage (range is your friend) and makes smaller trends.
There is also an option to use an instrument where you can expect specific movement in specific direction. For example if you know that it will go only up, you can choose to use only the buy.
So you will have this parameters to set:
- EnableBuyPositions - true/false
- EnableSellPositions - true/false
- StartLot = 0.01 (or other valid number)
- Distance = 20 (bigger or smaller value)
- MaxPositions =20 (number of positions when the system will stop opening more positions and will wait for correction or for you to handle the situation manually)
It is up to you to choose the right instrument, the right capital , the right starting lot and the right distance between the orders. If you do that right you can minimize the risk significantly and you can have success.If you find an instrument where you know what the global trend will be, then you can diable the oposite positions and have even greater success.
Related: Grid trading strategy EA's