to simultaneously buy and sell again at that. This, in turn, leaves one position open and accumulates loss. If the trend develops in a strong fashion way with shallow retracements the cumulative losses from all open positions will move exponentially higher as the trend expands (see Figure 6 ). Statistically over time this will give more loss then potential gain, since the loss increases exponentially as there are more open trades, but profit increases linearly. The application can also be tested for free using the demo platform provided. The company provides three platforms aimed at different trader skills. The third, unfavourable trading scenario, involves the price opening some positions without hitting your Take-profit and retreating into the opposite direction. Two of them are favourable for the trader. Also simpler the strategy is, better are the results. XM Broker TickMill We use both of these brokers and proudly promote them! The biggest concern and challenge for a Grid Trader is the psychological ability to deal with loses and the time when you need to close your negative trades. If you want to take more risk go for 10 per pair, but not more.
Using the Grid Trading Strategy for Consistent Growth The Grid trading strategy can be a profitable system if we have the right trading environment, however, if we have a strong trend, it can hurt your account balance as the above example clearly shows. Note that there are other ways to plot the grid's leg pivot points, chart formation, support and resistances, etc. It is all about statistics. Firstly the Grid System requires establishing a grid size that youre going to be using for your trading and for our Grid base trading strategy were going to use 50 pips as the grid size, so the gaps between the grid lines are going. Hope that you like the strategies that we share. The tool offers more than 200 indicators and settings that traders can adjust in order to develop the perfect strategy.