自动化网格交易 (Automated Grid Trading)

1. Use very small lotsize (nano trades = 0.01 lot size, 1000$ for standard, 100$ for mini accounts). This system runs tick based, not candle based. It opens maximum 1 trade per tick. All trades are opened at market, no stoploss, no limitorders.
2. Start with 1 buy at market and 1 sell at market. They only differ with a currency spread.
3. From that point, no other buys will be placed below first buy, no other sell above first sell.
4. Recalculate profit for each tick, it there is negative profit, then place a trade at market (buy if above or sell if below) BUT only if there is still vacant pip position.
5. You then have a group of buys on the upper part and a group of sells on the lower part. If there is finally positive profit, it stops with trading and leaves a group of trades. As long as the market moves away from them, the profit becomes larger.

But there are also risks with this trading method:

1. When market changes direction, going back into grid, the profit becomes back negative: it continues to open trades on another vacant pip positions, making a grid larger until the profit finally becomes again positive.
2. The number of trades can be very large, that the available margin could become zero.
3. It can take hours, days or weeks time before the total profit target should be reached.
4. Too many trades with too much margin can blow out accounts. So, it’s important to have big leverage (400:1 or 200:1).
5. Also important: IT MUST HAVE FAST CONNECTION WITH THE FX SERVER! Because this system uses only trades at market.
6. Some brokers allow only a LIMITED number of open trades.

In order to try to prevent these risks, I improved this system with starting conditions:

1. Start immediately
2. Start if ask has reached VALUE1
3. Start if bid has reached VALUE2
4. Start if ONE of BOTH condition is true

The VALUES are to be defined where it’s best to start from, after studying charts.

That’s all where I am currently developing a stand-alone robot with this system. Also I have backtested this system using MT4 terminal. I use both MT3 and MT4 demo accounts.

Any questions and suggestions are welcome!

Regards,
Jeff