Scaling in, scaling down, averaging down…..Losers average losers?

It is said that the market spends most of the time reverting. If this is true, then why is there so much focus on trend strategies? By focusing on Trend strategies we miss out on most of the opportunities the market presents us.Because of this, I recently have come to decision that reversion strategies are the way to […]

Scaling, Entry Price, Net Price, and Martingale

To win at forex, it ultimately comes down to your net position and final close price. So, every time we enter into an existing position, we modify our net position in hope that our final position will be in profit…. but does it really work? For the longest time, I believed that scaling in or out […]

Arin Grid on MQL5

Last week, a reader known as Matt sent me a comment pointing me to a Grid on MQL5 that might be of interest. I thought it would be fun if we did this analysis together so I’m going to bump up this post. So let’s see, the Arin grid can be found here: http://www.mql5.com/en/signals/35388 Its equity profile looks very […]

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Grid trading research continues…

I have spent some time doing some research into Grids in an attempt to find ways to hedge the grid against the dreaded draw-down. Sadly, I couldn’t find any site that appears to have analyzed grids as much as I have. If you know one, please let me know! The rest of the sites I […]

Never buy and sell simultaneously

While researching other Grids, I noticed from their trade history they worked differently to mine. Actually, I really had a lot of trouble finding Grids which traded in both directions all the time, like my proposed strategy. I did find one here http://www.myfxbook.com/strategies/grid-stoch/14597 and if you look at the trade history you can quite clearly […]

Probabilities and Black Swans

Grid Trading’s most appealing aspect has to be that you don’t need to know which direction the market will head, you can always make money. To be honest, anyone that tells you they know what the market will do is fooling themselves, and you. What is the probability that the price will go up 1%? […]

Grid Trading: Choosing a currency pair

Firstly, apologies for the lateness of this post! I’ve been working on a side-strategy (a Bollinger based reversion strategy) that was looking quite promising with less effort. More on this later – for now, let’s talk about Grids! The success of Grid Trading very much depends on the currency pair it is executed on. As […]

Grid trading unleashed…

In the previous post, I started highlighting Grid Trading’s potential of being able to absorb losses. Well, in this post I’m going to explain to you what this really means, and what happens when this potential is unleashed So in the previous post we compared the 2008/2009 GFC period for two Grid Trading strategies, Restricted […]

Grid Trading Potential

As I briefly mentioned in the previous post, Grid Trading can be done a number of ways and can either lead to great success, or complete failure. So with any implementation there is a major point that needs to be considered – when do we pull the plug on the grid, if at all? Let […]

Introduction to Grid Trading

I am quite excited to tell you all about Grid Trading. It is something I discovered in my research a couple of months ago and it really grasped my attention. So, what is it? Essentially in its most basic form, Grid Trading is a reversion strategy where trades are entered as the price reaches particular […]