Monthly Archives: July 2013

Top 10 Myths about Grid Trading

I contributed to the Grid Trading System blog today with an article about the Top 10 Myths about Grid Trading. I outlined the most popular ones (in my opinion) there and gave a brief description of each. However I plan to elaborate further on them, perhaps dedicate a separate post to each one here.  I believe it is really important to clarify these.

On a side note, we are travelling to Europe at the beginning of next week and I probably won’t be able to post for some time.  I’ll need a few days to get settled there (and to overcome the jet lag). Then hopefully will be able to upload some fresh Grid Trading videos too, particularly more trading sessions examples…

Grid Trading and StopLoss

In my yesterday’s post (Myth: Grid Trading will Blow Up Your Account) I said that having a no Stoploss is a big red flag. Yes, it is. You should always use a Stoploss. Always. And not just with Grid Trading, but with any trading system.  You see a trading system with no Stoploss, you’d better stay away from it. Such a system is most probably a scam. Why? Because the Stoploss is there to protect you. It is there to limit your loss in case the market goes against you. It allows you to “cut your losses short”. The Stoploss is often a crucial part of your risk management too. It should definitely not be the only thing there, it should not be all you do to limit your risk, but it is still extremely important. Throughout the Grid Trading Course we often point out that you should use a Stoploss in all cases. Our GRIDAlgo EA also offers several different types of Stoploss. And we show examples with each and every one of them too…

So I don’t know how to emphasize this more.  But let me say it one more time – ALWAYS use a Stoploss. With any trading system, during any trading session. Always. Don’t even think about trading without it.  This is one of the “big” secrets to be profitable in the long term. And it works. So, use it. Please.

Myth: Grid Trading will Blow Up Your Account

Ok, let’s talk about the pink elephant in the room. It is a topic that often comes up.  It is the first myth that I would like to discuss. It is that Grid Trading will blow up your account with time, that this is inevitable and will happen to everyone who dares to trade with a grid.  This is the biggest, most persistent and completely illogical myth I’ve heard about Grid Trading. It is not true.

Let me state this loud and clear – there’s nothing wrong with Grid Trading. It will not blow up your account. It is not flawed by design. In fact Grid Trading is a viable and profitable system, it has passed the test of time and it has proven that it can make money. It can make you money too.

Ok, then, where do all these negative stories about Grid Trading come from? Well, first of all there are negative stories about any other system or EA out there. People have lost their money to all kinds of strategies and trading robots.  And while some of the EAs are clearly a scam, others are profitable, viable systems. The reality is that people often lose their accounts not because of a faulty system, but due to lack of understanding how it works, inability to follow its rules, not using any risk nor money management and so on and so on. The same old, well known reasons…

One thing I noticed in all these “blown up account” stories is that they come from people who traded with the so called “No Stop Hedged Grid Trading”. No Stop?! Really?! So, they take a trading system that they know doesn’t have a stop loss (a BIG red flag), they apply it to their live accounts, they don’t use ANY risk management  (not even a simple stop loss) and then they are surprised that they lost their money! That they blew up their accounts! And then these people blame Grid Trading for this! Seriously?!

Having no risk management is completely irresponsible and is the actual reason for “blowing up” your account. It is NOT Grid Trading that causes you to lose your money, not at all. It is you trading with no risk management, no money management, no trading plan, nothing. Not even a simple stop loss. These are the same old reasons that caused numerous traders before you to lose their money with all kinds of trading systems. The same reasons that are valid for ANY trading system. That’s it really.

Grid Trading is a solid trading approach. You use it properly, it can and it will make you money.

Hope the above helps! Thank you.

A Few Good Reasons to Use Grid Trading

Because it is profitable! This alone is a GREAT reason to use Grid Trading. It is a profitable trading system, it’s been around for quite some time, it has proven that it can make money.

Because it is automated! Nowadays there are excellent tools to automate your Grid Trading system. We offer one ourselves – this is GRIDAlgo. This EA is a part of our Grid Trading Course, we explain each and every feature it has during the live webinars and we show tons of examples as well.

Because it is versatile! You can trade it on any currency pair, on any timeframe, on any account size. In other words you can adjust a Grid Trading System to your trading style!

Oh, and did I mention because it is profitable? :)

Feel free to check out this other article of mine (below), it gives a bit more details about why you should use Grid Trading:

Grid Trading Article – Why Use Grid Trading

What is Grid Trading?

Ok, first things first – what is Grid Trading? Well, with just a few words – Grid Trading is a way to extract profit from the markets. It is a trading system with clear, straightforward rules and no indicators. In its most traditional form you merely buy or sell (or both) every X pips the price has moved.

Grid Trading is mostly popular on the Forex markets and often is called Forex Grid Trading. It can however be used on any other market as well.

For greater details and examples please check out my article below:

Grid Trading Article – What is Grid Trading


Grid Trading Blog

Ok, it’s simple, this blog is about Grid Trading. After all these years of researching, developing and trading with Grid Trading strategies I finally decided to start a blog. Why? Well, because I hope this will enable me to communicate better with you. To share my experience, to answer your questions, to discuss my ideas and research, to showcase different techniques. To popularize various Grid Trading systems. To debunk the myths associated with it (there are numerous of them floating around). And to hopefully give you a few (at least) good reasons to use Grid Trading yourself.

So, let’s start!