Grid Trading is a clear and
straightforward trading system. In its pure form (classic grid) it
does not use nor need any indicators. It is designed to take
advantage of the natural back and forth market movements. You merely
open both a buy and a sell trade on every grid line and this allows
you to make profit regardless of the direction the market moves. It
is a simple and effective technique. If the market moves up, you close
up your long trades, when it goes back down (retraces) you close your
sell trades too. This is how you make profit, by accumulating winning
trades in both directions. You don't need to predict the trend, you
don't need to know where the market is heading because you have
trades opened in both directions (hedged positions).
Up
and down, wave after wave – you are making profit.
These hedged positions are exactly
what makes classic grid extremely effective during ranging markets
(when the price is moving sideways or in a range). According to
various estimations these type of markets occur during 70-80% of the
time. Which means that. you can rack up profits while others are
waiting on the sideline for a trend...
Related posts:
Top 10 Benefits in Using a Grid Trading System
Grid Trading System
Top 10 Myths about Forex Grid Trading System