Complex trading system #21 (Trapping the price)

Submitted by Eric

Set up.

Pick a price level. (eg 1.5000)
Place 3 long limit orders above the chosen middle line at equal increment. (1.5050, 1.5100 and 1.5150) (50 pips increment)
Place 3 short limit orders below the chosen middle line at the same increment (1.4950, 1.4900 and 1.4850) ( 50 pips increment)
All long limit orders have a target profit of 1.5200.
All short limit orders have a target profit of 1.4800.

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yes, this methode creates pennies unfortunately, at least with the given stack.

IG Markets seems to be reliable, but still running a demo account there...also, they support long and short positions simultanesouly.

good luck!

Hello again,

I have tried a couple of those "grid" methods, trading very little money just to see.

I am with Oanda. These guys just cannot help it: they stop hunt. Now we are talking pennies here!!! They just do it anyway. I suspect a computer does it for them. Anyway, is there an honest forex broker anywhere???


Hi all,
I'm paper trading a similar system, but based on 5min charts, one order at both sides,a target of 20 pis, and s/l at 40 pips. The counter order needs to be increased always as soon as the other order is hit. Therefore, you should start with minilots at 0.1 to offset the oszillation of the 20 pips range between the 2 orders.

Example: Current Price level at 1.3990
Set initial lotsize of 0.1 Long at 1.4000 (T/P at 1.4020 and S/L at 1.3960)
Set initial lotsize of 0.1 Short at 1.3980 (T/P at 1.3960 and S/L at 1.4020)

If long is triggered, increase short size to 0.3 to cover any price reverse..wait until takeprofit of 20 pips is reached. So, if 1.4020 is hit, cancel any short and set following new orders:

Long at 1.4030 (T/P at 1.4050 and S/L at 1.3990)
Short at 1.4010 (T/P at 1.3990 and S/L at 1.4050)

Following stack is needed to overcome an oszillation of 20 pips without any targethits in between:

0.1, 0.3, 0.7, 1.5, 3.1, 6.3, 12.7., 25.5, 51.1, 76.8, fff

The question is now, how often does it happen, that the price oszillates between 20 pips and does not hit any target of 20 pips....i'm still testing this...probably more often, of what i can think about...:-(

I would be glad of any statistical help here...



you trade this system today?

it did Claude...

in theory, the system shouldn't lose...try to do some computations...

but then some considerations will have to be taken into account...this isn't the magic bullet...

as w/ any other system, wrong money management will cause the blow up of the account...

i have spent a great deal of time and effort changing some parameters/rule

at this point, i can say that trader's discretion is needed, an ea will not work on this system, and the system's parameters have to be adjusted to cater an individuals need's, preference, account size, risk-tolerance among others...

u would be surprised how basic common sense would take u so far...

funny how advanced we have come in terms of technology and whatnot that we sometimes try to use a jackhammer when a plain simple old fashioned sledgehammer will do...

try flexing some gray matter, you would be glad you did...

Talk about a change of mood! We go from "you cannot lose" to "it will blow your account for sure".

Not that I believed it was HG but you did say that your account has grown on a steady pace for a whole year. Was it just luck?



INDREK's statement is true...this will blow ur account...

But i believe it will only come to that if u entrust it entirely on EA's...

There are many areas to tweak around...

For example. Position Sizing. They don't have to be equal. Where does the price oscillate most? It ranges mostly where? Then size accordingly.

Most of the accounts were blown due to blindly trusting the EA's. I firmly believe this is best done manually and w/ human discretion to get around the supposed inherent pitfalls of the system.


Hello again,
I had not seen the replies to my first post...

But still, maybe my second post questions were nor clear.

Say Long 1 is trigerred. So now we have Short 1,2 and 3 at two orders. Fine. Price reve and Short 1 is triggered . Now we have 1 order in play short (one of Short 1 is cancelled by the Long 1 position we had). If we had one order for Long 1, 2 and 3, Long 1 will have only one order while Long 2 and 3 will have two orders each. Are we supposed to keep all three levels on each side with the same number of orders between them, or is it possible to have a difference?

Hope this makes more sense.

My gut feeling is that it would make a great deal of difference either way.


This is bit confusing...
Two questions:
1- Are you supposed to have 6 limit orders AT ALL TIMES? 3 on each sides.
2- Are the ordwers on the same side (long or short) ALWAYS have to be of the same value? eg. 1, 2, 3 etc limit orders.


What is described here is well-known grid trading. There are many EAs available in forums that can used for backtesting the system with different settings. With their help, it is easy to find out that all grid trading versions will kill the account at some point, although during some period it may seem promising.


Hello Claude,
yes, this system makes only sense, when you add all opposite levels again when a pending order is triggered. (short is triggered, short1 or short2 or short3, that makes no difference, each time you have to add all three long pending orders (long1, long2 and long3) ... otherwise you could drop down heavy some thousand pips into negative ... the system must "hedge" his own trades ...

Best to you,
Dietmar, DL4HAO

One more thing Claude and all of those who are mathematically/statistically inclined...

Try reading up on the following:

Gaussian Theory
Normal Distribution
Standard Deviation

I think those are the theoretical underpinnings of this system...



1. As w/ any trading system, money-management plays an integral part. Your scenario will happen, trust me. It happened to me several times.

2. When a trigger level is activated, place limit orders on all 3 OPPOSING levels (if Long-1 is triggered, place Limit Orders at Short-1, Short-2 and Short-3; if Long-2 is triggered, place additional Limit Orders at the same Short levels)
Basically, u want to have more Limit Orders at the side where the price will eventually go. So when price decides to go up, you should have more Longs than "ACTIVE" Shorts. I emphasized ACTIVE since if price is currently favoring the Longs, you should have been placing more PENDING (NOT ACTIVE) Limit Orders just in case price reverses and goes for the Shorts.

Suggestion, play w/ it. Change the parameters, experiment w/ the position sizing. I still have a few tricks up my sleeves for this system. But I'm wondering maybe we can all work together and make this as efficient as possible. Alright?

This certainly looks interesting, but also a little confusing!

How do you select your level initially? Is it just a random level close to where price is at the time?

Where do your stops go?

Thanks in advance,



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