外汇圆网格 (Forex Circle Grid)

Here is the plan:

1. Select 3 pairs of majors out of the following to form a "zero exposure" forex circle, for example

Long EURUSD, short GBPUSD, short EURGBP.

2. The criteria for choosing the 3 pairs and long/buy decisions are:

a. each pair's daily trend - long if the trend is up, short if the trend is down (I zoom out the daily chart to see the "big picture").
b. if for instance the three pairs trends (therefore long/short) don't enable the forex circle to form a zero exposure, for instance, EURUSD down (therefore short), GBPUSD down, so should be short, EURGBP range down at the support level, then, choose two pairs following their trend and the 3rd pair's long/short is determined by the zero exposure need. Edit: when E/U down, E/G up and G/U down, then the rough conclusion is delta USD>delta Eur>delta GBP, and considering the pip value, then first select GBP follow the observed trend (down). So choose short G/U, then long E/U and short E/G.

3. Use Grid approach to open/exit trades for each pair. the grid settings are:

a. lot size = 0.1 (the minimum lot size allowed by the broker);
b. take profit target = 100pips, if take profit, the new position will be opened "right away" (note: this is just the current thinking, I will need to think through the t/p approach for this plan);
c. If market moves to opposite direction of the 1st lot, then open the 2nd lot size =0.1 (no increase of lot size), space from 1st lot is 100pips (changed from previous setting of 18pip, which is too tight and has no basis for doing so), the 3rd lot size =0.1 (space from the 1st lot is 200pips) and the 4th lot size =0.1, space from 1st lot will be 300pips. (again, I will need to do some statistics on grid spacing - such as opening a long position after the close moved xxxpip lower versus last y days low)

I will revise the exit rules later.