Monthly Archives: August 2013

Grid Trading Basics – What is a Trading Grid?

A trading grid is the main tool employed by Grid Trading to extract profit from the markets. OK, but, what exactly is it? Well, nothing fancy here, a trading grid is really just a series of trades executed at (usually) predetermined price levels – see chart 1.

Grid Trading Concepts - Trading grid chart 1 screenshot gbpusd

chart 1 – Trading Grid on GBPUSD

The above is a screenshot from an actual trading session performed on GBPUSD. Every horizontal line shows that there’s a trade executed at this price level. You can see how it looks like there’s a grid (of trades) on the chart i.e. a trading grid.

Every price level where we execute a trade at is called a grid line. And in order to be able to calculate these price levels i.e. to define a trading grid you need to know 2 things – its base line and its grid step. The base line can be any price you choose. Often it is your starting (or first) line, the one you place your first trade at.

Grid Step is the distance between any 2 neighboring grid lines. It is usually given in pips (Forex markets). For example a Grid Step of 15 means that you have 15 pips distance between every 2 neighboring grid lines. Which means that you execute a trade on every 15 pips.

Smaller grid step means more aggressive trading. You will put more trades out there, you will have higher exposure, higher risk but you will also be able to rack up profits faster. While for more conservative trading you want to have larger grid step. In this case your grid will be able to withstand a wider range of market conditions. Generally for short term or intraday trading I use fairly small grid steps (below 30 pips).

Will continue with this topic in my next post…

GRIDAlgo EA is a Versatile Trading Tool

 Yes, our GRIDAlgo EA (an integral part of the Grid Trading Course) is a versatile trading robot. It allows for automating of various grid trading systems. It takes the heavy lifting of creating and maintaining trading grids for you. It keeps track of the market 24/7, following each and every incoming tick. It opens and closes positions automatically, keeps the trading grid running.

GRIDAlgo is a fully featured trading robot. It has numerous settings that allow you to adjust it to different markets, to anyone’s account size and trading style. It enables you to profit from both ranging and trading markets. And yes, Grid Trading can generate profit from trending markets too. In fact it can make tremendous profits from trends…

In the coming weeks I will be showing various examples with GRIDAlgo. I’ll be trading in real time with it under various market conditions and record my sessions on video. My goal is to showcase the power and versatility of Grid Trading. And that GRIDAlgo is a tool that allows you to tame and use this power to your benefit. Allows you to extract profits from the currency markets.