Category Archives: Grid Trading

Grid Trading Basics – How to Create a Trading Grid?

Now, that we know what a trading grid is, let’s see how we can create one. Well, it is pretty simple. First, we need to choose our Base Line and our Grid Step. And second – we need to place the trades according to them. That’s it!
Let’s do an example, let’s say we want to create a trading grid on GBPUSD. Here’s what our chart looks like before we start:


Chart 1 – Before we start

We want to create a short trading grid. This means that we will be executing sell trades only. Furthermore we decide to use a grid step of 20 pips. Why? Because it is a convenient number, easy to make calculations with. In other words it is a pretty random choice, we use it for this example only. In real life you should backtest and thus decide on a proper value.
Next thing we do is to choose our Base Line. We want it to be close to the current price, at some round number for convenience. In our case this can be 1.6040. We place a pending sell trade there. This is how we start our trading grid – by placing a trade on the closest (to the current price) grid line. It can be a pending trade if the current price is far enough. Or it can be a market order – if the current market price is really close to this grid line, then just wait until it gets to it and then execute the order:


Chart 2 – First trade placed

Once we have our first order in place (pending or market) we continue with the next ones. We cover the neighboring grid lines. Remember, our base line is at 1.6040 and our grid step is 20 pips. This means that our grid lines above the base one are at 1.6060, 1.6080, 1.6100, etc. And the grid lines below (the base line) are at 1.6020, 1.6000, 1.5080, etc. We cover them with pending trades i.e. we place a pending sell order on each and every one of them:


Chart 3 – All pending trades placed

Shortly after we placed all our pending trades, the first one, at our Base Line got executed:


Chart 4 – Our first trade gets executed

We placed a total of 7 trades, 1 at our base line and 3 on each side of it. Here’s how the chart looks when we zoom out:


Chart 5 – Our trading grid

Congratulations! We’ve just created our first trading grid! Do you see it? It looks like there’s a grid of trades on the chart. This is our trading grid. This is where Grid Trading gets its name too…

News Grid Trading System Video

Just another great example of our popular News Grid Trading System (see the link below). It is a video of an actual trading session we did on EURUSD. You can see how the price action changes just before the news announcement and then the strong reaction after it hits the market. Our GRIDAlgo EA detects it and creates a trading grid to capture the move… Watch it unfold below:

Forex News Grid Trading System Video – EURUSD

As you can see Grid Trading is not only handling trends perfectly, it thrives on them…We made more than 5% net profit in just a few minutes of trading…

News Grid Trading System – Weekly Outlook

First week of September (9/2-9/8), suitable days to trade with our News Grid Trading System will be:

Thursday – September 5th

Friday – September 6th

Both days look good, but out of the two I think Friday will be better. There are 2 major news hitting on that day exactly at the same time and the second one is the “Unemployment Rate” announcement. It alone has a great potential to move the market…

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.

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…