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

Claus,
Just to clarify one more thing.
When do we exit?
Do we wait till we are in profit or when do we accept losses?

Thank you for sharing the system.
How long have you been trading it?

Cheers,
Elle

Hi Elle,

#Do we wait till we are in profit?#

Yes! I prefer small profits although the spreads bite. Broker costs are a downside of all grid systems. When you trust the current trend you may want to wait a bit longer before you close positions and prefer more spacing between the orders. That's in fact a discretionary part of the system because it's always dependent on your own risk tolerance.

I'm trading this since a few weeks. London opening, NY opening and after the announcement of news (volatility!). Mainly GBP/USD and EUR/USD. Of course other pairs are possible too.

Claus

Hi Claus
Im just wondering how your system is performing lately....... Im checking different methods and thoughts but still Indecisive. Have you make any discovery recently?

I hope to hear from you

Dachel

Hi Claus i think this should be a very nice strategy,but i am just hearing about the system for the first time so i dont know if can make it clear enough for a better understanding. thanks and hoping to hear from you soon.

I am sorry but I do not understand that system. If we buy/sell lot after lot and price reverse what happen. And "Since the orders are
canceling their opposites, margin is a very small issue here." what does it mean? Are we using O.C.O.? And why? Could you please explain in a manner understandable for a newbie!

Interesting system. I am confused as of the "cancel" aspect. Can anyone help? Do we place the orders as oco or does the author mean that when a buy order turns and hits the sell point, we are essentially without a position (therefore canceling) because the buy order is neutralized by the sell order. If we did oco then a turn would need to be twice as large as a prior move to "neutralize the position". Example: In the grid given, let#s say we get a buy order at 1.7820. Is the opposing 1.7780 order gone as well or does it stand until the bought lot hits the price and then gets neutralized? In one case the loss would come at 40 pips, in the other at 60 pips (next step at 1.7760)

Its a good system when the market is choppy or ranging. A strong trend will blow your account and with exponential losses.

I agree with above. it may blow up. i saw the pivot scalping system on here as well. we could combine this grid system and that pivot system to make a really strong system. instead of using trend which may fail and have huge drawdowns, we could use daily pivots that start at 0GMT. just wait for it to touch the pivot, break though and then put on buy and sell stops. then have it scalp fo about 3-5 pips at a time. shuold work in any market as long as it touches a pivot levels S1 S2 S3 or R1 R2 R3

any thoughts claus?