Grid systems

There are various trading systems on the international forex market, but if we talk about the option of trading within a day, the most popular is the grid trading systems. Grid (or grid) systems on forex are positioned as systems of day trading. They allow players to hug the price swings to the maximum, capturing them using the method of opening orders. In this case, orders are opened by the player sequentially, one after another. Grid forex systems are a kind of algorithm, a trading set that includes a huge number of trading positions, positions are located above the price level, as well as under the price itself. A set of positions are a set of pending orders that must work if they are reached at the price. As for trading within a day, then at most (a longer time frame), pairs of currencies are traded precisely in the range. And consequently, traders who are in the waiting mode (waiting for an active trend movement), simply do not make a profit, remaining practically without income. An excellent solution to the problem is the use of a grid of orders close to take profit and stop loss. Since traders and even experienced market speculators, despite their knowledge and analysis, can not be 100% sure, which direction the price will take and where it will go. They use a grid, such a grid already includes two types of warrant - for purchase and sale. Let's consider the following task for better understanding. Suppose, on a certain day N (a certain day), there should not be any important events on the international forex market. Once important news is not expected, then the price is most likely to be made not by consistent and chaotic movements. For trades, we need to select a fairly technical instrument with a good level of volatility - GBP / USD, and then put 10 pending orders (the set of orders includes 5 orders for sale and 5 for purchase), at an interval of 15 points from each other and prices for this moment. Take profit is 15 points, stop loss is 5, and the opening price is 1.609. If there are pending orders at 15 points, then if the currency instrument rushes upwards and at the level of 1.6105 and the first order for purchase is triggered, which will close already at 1.6120, and give us 15 points of income. Immediately the next order will work - the second order for the purchase, which will close at 1.6115 (in stop-loss), bringing a loss of 5 points. The remaining number of orders did not work, as a result, the total revenue for the day totals 10 points, and the trading day ended with a close, almost at the opening mark of 1.6095. Players who trade on the trend did not earn almost anything. Such trading systems as grid systems are of a diverse structure and complexity. Deferred orders quite often follow the price, and instead of a stop order, martingale (doubling) is often used. That is, instead of stop, you need to open one more buy (using twice the volume). The results are amazing! The grid system is capable of yielding several times more income (not 10 points, as in the previous example, but already 30 points of income per day). If you perform the correct configuration and correctly set all parameters and input data, such systems can function on the trend exchange. Choosing an instrument, it is worth carefully evaluate all the properties of the pair - its liquidity and the level of volatility. If desired, the player can automate the grid, and the need to constantly monitor the entire process of work simply disappears. If we talk about the disadvantages, the use of such a grid involves opening a multitude of positions by the trader, which negatively affects his wallet, he can lose quite a lot on one swap only. If you are thinking about the active use of the grid, pay attention to the rebate service (return of the commission). Returning a part from a swap will make it easier for the trader to pay, and will not affect his finances. As you can see, the risks are significant, as well as the opportunity to earn an impressive profit.