The beauty of the Hedged Dual Grid System is that there are several grid configurations that you can work with and it all depends on your level of experience and how much time you have put in backtesting the best possible scenarios.

In order to minimize any possible large losses, you can also implement a hard stop so if the grid falls below a certain amount of pips you close all the positions. We can start the grid and execute our buy and sell orders at the current market price level. Our buy and sell grid will look like below…. Forex Hedging Dual Grid Strategy — Trade Example. The above chart shows an ideal scenario for our grid configuration and the best way to trade in this type of market environment is with no stop loss as it would have maximized your gains.

However, we applied a conservative approach and used an SL of 40 pips as per the trading rules of the Dual Grid System highlighted above. As you can tell from the example above at the end of the level 15 in our grid if we were to close all our positions we would have netted pips in profit.

The cumulative profits were pips while the cumulative losses were only pips. Forex Hedging Dual Grid Strategy — Trade Example 2. In the grid above, we managed to reach the 4th level in our grid system and also managed to successfully close almost all of our trades.

If the price moves straight up we only buy or if the price moves straight down we only execute the sell orders. That is less risky nearly every time. I close all trades at fixed profit or when a total stop reached. Firstly thank you so much for your excellent high level grid strategy.

Secondly i am trading for 7. Yes your systems are the best i also found a profitable signal service that it uses grid strategy with more than 2 years of consistent profit with More than 1 million percent profit. You can email me if you want more info.

Hi I have written an EA to test this concept. I am surprised how well it actually does. Which pairs do you suggest are better than others? All of the majors EURUSD, USDJPY, GBPUSD can be tackled with grid strategies other than that it is down to preference and spread costs. Typically you have some trigger to start the grid — either a price level being reached or other technical condition being met. Then the placement of the other order legs is defined by the price level of the first one.

So they would be entered only once that starting level is known. Hi Steve, great piece of article, benefited greatly. Can you please advice some leg width guidelines with regard to the chart periods 15m, 1H, 1D? and typical ATR at any point of time? If you have an EA, i would advise to turn it on and off. You hit upon that a little when you wrote about configuring the legs at pivots, levels.. By using it as it is, a tool to be used and then put away until the next time, you eliminate some of the risk above.

Also, if you are an American citizen only, you cannot open opposing orders in the same pair anymore. The NFA has put an end to that. That was the reason I stopped working in FX, having 2 accounts closed in and outside of the USA. There are ways around it, using multiple brokers to open opposing legs for example. I agree entirely. Regarding your second point. You could avoid ever opening opposing trades by using a knock-out system and placing market orders when the levels are hit.

Though it does make the trade management a bit more complicated. Hi Steve, This hedge strategy is interesting. I use MacBook laptop and It would not open. exe files.

Is it possible to download the hedge spreadsheet files in excel format? Thanks for your interest. The trading tools are being reworked and will be available in a new format soon. This is quite a complex development task and will take around 1 or 2 months so please check back later. Promising technique, great article.

Would like to experiment with the grid. Could I get your EA to test it? I want to know in the example Simulation 1 If only all the buy stop orders were hit and the price extended beyond 1.

That is I want a specific target so that I can sleep or I have to come back at the end of the day and see whats the situation after setting it up in the morning? I like the idea but I am not clear of the execution. Lets say I place take profit at pips up for all the Buy orders that is 1.

I recommend you see my separate article on setting stop losses and take profits here. Excellent article! Unable to load the. xlsx spreadsheet properly in Win-7 Excel Unicode chars appear all over the sheet. Interesting concept but where are the stop losses for orders?

I can see where are take profits, they are at 15 pips interval right? What about SL then? This grid arrangement creates the stop losses. Each grid level has an opposite order, so for example level 1 is a buy and that has an opposite sell order which is triggered at level -4 in the grid. When trade 1 and trade -4 are both open, they have a fixed loss of pips. This is the stop loss.

Of course, it would be normal practice to put in safety stops just in case for some reason one of your grid orders does not execute for whatever reason. I would typically use pips for the GBPJPY and pips for the EURUSD for instance. Secondly, there is no rule that says that the legs have to be the same size.

So I change my leg sizes in trending markets to be even bigger. If I started with for the 1st leg I would go to for the 2nd leg and for the 3rd leg etc.

This makes sure that I am carrying less loss making transactions in a trend. Thirdly, sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend.

However be aware of having the same number of sell and buy transactions. Fourthly, this is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market.

This also gives you an opportunity to re-assess the market conditions. Fifthly, cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten. People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market.

Please feel free to contact Mary McArthur at marymcarthur expert4x. com for clarification on any items discussed above. She has numerous examples of successful applications of grid trading.

We will call this strategy the Forex Hedging Dual Grid Strategy. At first look, this might not agree with what seems right or natural however as we move forward and explain in more details the Dual Grid strategy will make more sense to you.

There are four steps to trading the grid system:. If you want to find out your PnL for the entire grid there is an easy way by simply computing the following formula:. Using the above formula will make the trade management of the Hedged Dual Grid Strategy a lot easier. In order to generate a dual grid system, we have to manage the two grids simultaneously. This implies managing our stops and take profits individually on both sides of the grid.

The general premise behind this system is that once one side of the grid is closed out in profit at one point the market will reverse and the other side of the grid will become profitable and hopefully we manage to close the entire grid in a profit position. The beauty of the Hedged Dual Grid System is that there are several grid configurations that you can work with and it all depends on your level of experience and how much time you have put in backtesting the best possible scenarios.

In order to minimize any possible large losses, you can also implement a hard stop so if the grid falls below a certain amount of pips you close all the positions. We can start the grid and execute our buy and sell orders at the current market price level.

Our buy and sell grid will look like below…. Forex Hedging Dual Grid Strategy — Trade Example. The above chart shows an ideal scenario for our grid configuration and the best way to trade in this type of market environment is with no stop loss as it would have maximized your gains.

However, we applied a conservative approach and used an SL of 40 pips as per the trading rules of the Dual Grid System highlighted above. As you can tell from the example above at the end of the level 15 in our grid if we were to close all our positions we would have netted pips in profit. The cumulative profits were pips while the cumulative losses were only pips. Forex Hedging Dual Grid Strategy — Trade Example 2. In the grid above, we managed to reach the 4th level in our grid system and also managed to successfully close almost all of our trades.

If the price moves straight up we only buy or if the price moves straight down we only execute the sell orders. Forex Hedging Dual Grid Strategy — Trade Example 3.

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You also need to close the grids. To keep things simple, I prefer to close out the entire grid once the sum of trades has reached my chosen profit level. You therefore need Strategies to minimize damage during these periods:. You can download our Excel spreadsheet and try out any number of different scenarios and under different market conditions see below. The attraction is that the system is reasonably mechanical, can be programmed and does not take much supervision as exclusively entry orders are used.

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