Bisnis : Forex Grid Trading Strategy Explained ...

The Forex grid system has become quite popular among traders because it's simple and easy to visualise. However, it is important to know that there's no guarantee.
Knowledge  is power – if you want to succeed, you must know how to execute the system correctly. To use strategies related to the Forex grid system,you have to understand:The good news is, you can set up an automatic Forex grid trading system which can remove the pain of manually placing trades. The great thing about a grid trading system is that it makes money in volatile market conditions.
This way, it eliminates the need to predict the market's direction – making the choice quite simple. The trader just has to know that the market is going to make a move and the strategy will take care of the rest.
It is important to use a broker with no trading commissions.
These conditions will limit the maximum levels of the Forex grid trading system. Another great thing about the grid strategy for Forex is that it works in trending markets too. However, the downside is that the trader always has to keep the available margin in mind – especially in trending markets.

Defining Forex grid trading strategy

The Forex grid trading strategy is a technique that seeks to make money on the natural movement of the market by positioning buy Stop Orders and sell Stop Orders. This is done on a predefined market distance (referred as to a leg), with a pre-set size of take-profit and no stop-loss.
This kind of trading removes the variable of knowing the direction of the price move. However, this also means very complicated money management conditions. Moreover, it increases the margin of error, because you will have to manage multiple trades at the same time.

Implementing the Forex grid system

First of all, decide on a starting point. For example, take a look at the current price of 1.12360.
Forex grid strategy
Choose the number of grid Forex strategy levels – in this example, there are three levels. Now place three buy Stop Orders above the current price of 1.12360 - and three sell Stop Orders below it. Note that there are other ways to plot the grid's leg – pivot points, chart formation, support and resistances etc.
Furthermore, the number of levels is not restricted. You can change both the number of trades and the size. However, use caution when making changes, as the possible size of the loss can increase with each one.

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