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

I had tried a similar system of ordering, but not for such a large grid. It worked satisfactorily. My TP pips were limited to the spread (2 or 3 pips, max 5) and this works safely.
Mohan

Hi. I read the strategy and got confused. I really need help and someone to explain to me.
What do you mean: buy stop loss 1.7820 1.7840 1.7860 1.7880 1.7900 1.7920 1.7940
sell stop loss 1.7780 1.7760 1.7740 1.7720 1.7700 1.7680 1.7660

How do I have to place an order on the trading platform? Please explain in detail.

Thank you.

Hi,

It should be read as:

"Buy stop" and "Sell stop" accordingly.
Buy stop is a pending order for a Long position (Buy position).
Sell Stop is a pending order for a Short position (Sell position).

So, there you place next pending Buy orders (called "Buy stop" in your trading platform):
at 1.7820, at 1.7840 and so forth.
Same for the pending Sell orders:
at 1.7780, at 1.7760 and so forth.

When you finish, you have a grid of pending Buy and Sell orders on your chart which are waiting to be triggered by the market price.

Best regards,
Edward

Hi.

I have a question. Can somebody explain to me how to reset the grid in a very detail?

Thank you.

The grid should be reset manually. You'll need to delete every line and order.
When you reset the grid, you just start all over again following the rules of the strategy...

Thomas

Call rather this strategy....a hedged straddles grid strategy ; this is the correct name . I consistently use it with incredible sucess ; the most important is to go to sleep with your ongoing positions ABSOLUTELY HEDGED ( same volume sell & buy in your ongoing positions ) so you probably get a handsome profit waiting for you when you switch again your computer ; when you are ready to trade , you always let more volume in bought or sold positions according to the trend ; for example, you can leave 3 LONGS with 1 SHORT when the trend is up , your ENTITY will be growing with the upside, even if you trail a 1 SHORT losing position , you gradually change the volume so as you have same volume if the market ranges & is choppy, or you add more SHORTS than LONGS if down trend.
At one point,you have closed your positions SHORT or LONG with profit , then it is up to you to see the reversal point ( just watch for the moving average to be crossed by the trend line , up or down ) then your losing positions should diminish , trailing them carefully.
My personal maths = 7 pips take profit each straddle with 3 pips interval between straddles, and most important , NO TAKE PROFIT in the most distant straddles , both buy & sell pending orders.
JR LEIGNEL stampsfun@yahoo.com

Hi Everyone,

Despite some of the comments claim that this is a martingale strategy, I do not think so. If I understood it correctly, your positions will eventually go positive. The worst case senario is that both long and short positions trigger. In this case you will suffer only 40 pips loss.

FaceReality says that you may suffer 120, 180 or even 400 pips of loss but since there is no stoploss or takeprofits and if you wait the market decide its way eventually the positions will go to profit or 40 pips loss. And of course a little more from daily swaps if you have to wait too much.

From this point of view this strategy seems logical and profitable.

Regards,
Erkanus

Hello Claus!
You just mirrored my own strategy))
http://ruforum.mt5.com/threads/7278-grid-trading-reactive
I called it GRID TRADIND REACTIVE because it reacts to market moove and adopts.
I understand that it is your idea and I also did not invented this aproach.

Do you still use it to trade?