FREE FOREX STRATEGIES

Forex trading strategy #13 (Trending pairs breakout grid system)

Trending pairs breakout grid system from Claus

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I choose the most violent pair, GBP/USD. I put stop loss orders above and
below the current price at an interval of 20 pips again. Current price is
about 1.7800 so here is the grid:

buy stop 1.7820 1.7840 1.7860 1.7880 1.7900 1.7920 1.7940
sell stop 1.7780 1.7760 1.7740 1.7720 1.7700 1.7680 1.7660

Eventually the market will go far from the current price, towards either
north or south. If I have more than 2.45 times buys than sells or more than
2.45 times sells than buys, the grid is is profit. Since the orders are
canceling their opposites, margin is a very small issue here. Lost capital
is also small. Obviously, if you set the grid just before London opening
you have a very small probability to have to wait for a few days until you
are in profit.

Suggestions and feedback is welcome. Thanks.

Claus


Thanks Claus, your contribution is greatly appreciated!
Edward Revy and my best Forex strategies Team
http://forex-strategies-revealed.com/

Is this a system or an Idea?? Because If is an Idea should be posted in the under development section right?

Can you post some of your results?

Everyone that upload a system should add some statistics so people know better about it.

can you tell about your biggest drawdown??

Hi,
I would like opinions and feedback on the system for improvement. Thanks.

Claus

All grid systems I have seen will eventually blow out your account. It sounds good in theory, but you will normally start accumulating losing positions that amount to hundreds of pips with no hope of retracements that will recoup your losses. I strongly suggest trying this on a demo for at least 3 months continuously before you think about using it with a live account.

#It sounds good in theory, but you will normally start accumulating losing positions that amount to hundreds of pips with no hope of retracements that will recoup your losses.#

My system has nothing to do with your Martingale. There is NO accumulating losing position here. We don't wait for a reversal but always trade with the trend and not against it. Therefore its called 'Trending pairs breakout grid system'.

@ All
No offense intended, but please try to understand the basic idea of the strategy and think it through first before you start to post. Otherwise we just waste time.

Claus

Hi Claus,

First of all, thank you for the system.
It is probably the first grid system that makes sense to me. I want to test it starting next Monday and I'd need to confirm few details, please.

The orders buy and sell don't cancel each other, right? Whichever is open stays open till we come to close all positions some time later.

Also, in your example you suggest 7 pairs of orders for the grid. Is this a recommended number or even required as long as the math goes?

Thank you!
Rich

#The orders buy and sell don't cancel each other, right? Whichever is open stays open till we come to close all positions some time later.#

Hi Rich,
the orders are canceling their opposites. When a buy order hits a sell order both orders are gone.

#Also, in your example you suggest 7 pairs of orders for the grid. Is this a recommended number or even required as long as the math goes?#

The number of orders is not limited. 7 pairs of orders was just an example. The same with GBP/USD, London opening and spacing of the grid.

You can also take EUR/USD, NY opening or a news event and a spacing of just 5 or 10 pips. I haven't figured out yet what works best here.

We just need volatility with huge ups and downs. This strategy doesn't work in a calm market.

Improvements or other ideas are welcome. Nothing is fixed yet. :-)

Claus