News Grid Trading System – Weekly Outlook

Unfortunately next week (10/7-10/13) is not suitable for trading with our News Grid Trading System. Following its fundamental analysis rules we can say that there’s not a single day that we can trade with it… Which may not be a bad thing after all – we can use the opportunity to take a break, go to the beach, spend time with our loved ones. In other words – enjoy life :)

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 – Weekly Outlook

Looking forward it is another week (9/16-9/22) with a single opportunity to trade with our News Grid Trading System. Not that it is bad thing, less trading means more time to spend with family and friends. This is actually one of the main advantages of the News Grid Trading System – very low time commitment. We literally trade just a couple times a week for only a few hours…And we do so using our automated trading robot GRIDAlgo  which requires very little or no supervision itself…

So, next week we can trade with the News Grid Trading System on:

Friday – September 20th

Happy Grid Trading!

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…