Grid trading has become very popular amongst traders because it does not use stops, is highly mechanical, has no reliance on direction, uses the intrinsic wavy nature of the market, does not require indicators or charts to trade and can be easily automated. Grid trading refers to the trading approach which uses fixed price levels to enter and exit trades.
On the bright side, a grid trading strategy can profit from the same absolute market movement several times and can even make money if the market is moving against your grid. On the downside it can appear complex and illogical initially, it can incur large drawdowns if poorly managed, requires more patience than normal and may require forex traders to make a huge paradigm shift it their thinking.
Once a grid has been allocated, the system will cash-in profits every time the market moves the desired spacing and replace the trade as soon as possible to repeat the process. したがって、, the expert advisor can cash-in the same price movement several times, capturing up to four or five times more profits than a single trade with the same exposure.
Grid trading is a highly profitable and mechanical trading strategy which has no reliance on direction, profits from volatility and uses the intrinsic wavy nature of the market. It requires no market timing or complicated analysis, but rather, the ability to forecast where the market won’t go in the long term and a good understanding of equity, exposure and leverage.