Friday, July 19, 2013

Grid Trading System

          Grid Trading is a trading system popular on the Foreign Exchange (Forex) markets. Because of this it is often being called Forex Grid Trading. It has simple, straightforward rules and is designed to take advantage of the natural back and forth market movements. There are no indicators, no complex math. To create a trading grid you just need to place a trade every N pips the price has moved in any direction.

          For example, if you want to create a long (upwards) grid with a step of 10, you need to execute a buy trade every 10 pips the price has moved. For short grid you put a sell trade every 10 pips. And for a fully hedged (classic) grid you place both a buy and a sell order on the same 10 pips distances. Simple, isn’t it?


          The following article “What is Grid Trading” has a really nice explanation, make sure you check it out.  

Related posts:
Top 10 Myths about Forex Grid Trading System
Top 10 Benefits in Using a Grid Trading System