"No Stop" Forex Grid Trading System 2

          OK, continuing the discussion over the "No Stop" Forex Grid Trading System from the previous post here.
          Forex Grid Trading is a great strategy, but to be consistently profitable with it, in the long run, you must have a solid risk management in place as well. Actually this is true for any trading system out there – a good risk management is necessary to achieve long term profitability. However the so called "No Stop" Forex Grid Trading System doesn't have any. None. Zero. Zilch. Not even a simple StopLoss.
         The "No Stop" Forex Grid Trading System states that it is designed to take advantage of the natural back and forth market movements – this is true. It then builds a hedge grid to capture them – and it does. It has buys and sells opened at the same time, on the same grid line and this allows it to make profit regardless of the market direction. It all sounds good. And works most of the time. Why? Because this kind of setup (a hedged grid) is suitable for ranging markets, when price is moving sideways, in a range. This is where the "No Stop" Forex Hedged Grid Trading System shines. It racks up profits on every up and down movement, on every market wave. And the good news is that markets are moving sideways during majority of the time – various estimates say 70 to 80% of the time. This means that the "No Stop"  Forex Hedged Grid Trading System will be making money during 70-80% of the time too. It all sounds great, isn't it? Well, yes, it does, at a first glance at least.
          The problem here is that trends happen. Outside these 70-80% of the time markets are trending. And when a strong trend occurs, lets say an upwards one, then your grid will close all the buy positions at profit, but the sell ones will stay. The sell trades will stay open at an ever increasing loss (because there's no StopLoss on any of them). The stronger the trend the more sell trades will be opened and the higher the loss they will accumulate. And there's nothing in the "No Stop" Forex Hedged Grid Trading System to stop that. There's no risk management, not even a simple StopLoss at place. The trader is supposed to sit and wait and hope that some magic will get him out of the bad position he got himself in. And the moment you start relying on hope, on magic, this is when you are no longer trading. You are gambling...
          You should never ever use a trading system with no risk management. You should never ever use the No Stop Forex Hedged Grid Trading System. You should never ever trade without a StopLoss. It is that simple.

Related posts:
"No Stop" Forex Grid Trading System
Top 10 Myths About Forex Grid Trading System
Top 10 Benefits in Using a Grid Trading System

"No Stop" Forex Grid Trading System

NO! Don’t fall for this!
          The so called "No Stop" Forex Grid Trading System is a joke. Don’t use it. It will blow your account over time. For sure! The first big trend you encounter and you will lose all your money (or until you get a margin call). You may make some profit initially, in fact if markets are favorable you can make a substantial profit and this can continue for quite some time. But then, eventually, a strong trend will occur and it will wipe out your account. 

Why? Because you don't have anything to protect your account, you don't have any risk management, you don't even have a Stop Loss. In fact do NOT use any trading system that does not have a Stop Loss. Do NOT ever trade without at least some type of Stop Loss.
          This is an extremely important topic and I’ll continue with more details on it in my next post. For now I just would like to state one more time – do not use the so called "No Stop" Forex Grid Trading System, it is a waste of time...


Related posts:
"No Stop" Forex Grid Trading System 2
10 Reasons to Use an Expert Advisor aka a Trading Robot

Grid Trading System Can Be Adjusted to Your Trading Style

          This is an important advantage of GridTrading. Different traders have different trading styles. One is more conservative, not willing to take risks and aiming to make just a few percentages of profit per month. While another is more aggressive, aiming at much higher profits, often 10-20-30% (or more) per week. Well, whatever your trading style is, a Grid Trading System can accommodate it. You can adjust the settings of your trading grid, so it matches your preferences. For example more aggressive trades can have a smaller grid step. This puts out more trades, makes for faster accumulating of profit...
          And why is this important? Because this allows you to trade as you feel comfortable. Grid Trading does not impose on you someone else's trading style, someones else's risk tolerance. No, not at all. It enables you to trade in your comfort zone, according to your own risk tolerance and your own profit goals. Convenient, isn't it?

Related posts:
Grid Trading Advantage – It Can Profit from both Trending and Ranging Markets
Grid Trading Advantage – No Indicators, No Complex Charts
Top 10 Myths about Forex Grid Trading System