I have found that the failures are mainly due to ignorance, impatience and greed common reasons for trading failure. All of them, no exception! Unfortunately the failures tend to discourage traders from taking advantage of this great system.
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In the Navigator window, double click Expert Advisors to expand it. After placing Forex Grid Trader EA on the chart, you should see a smiley face in the upper right-hand corner of your chart. This means the robot is running. If you do not see a smiley face, make certain that under Properties on the menu bar, the Allow Live Trading box is checked.
If it is checked and you still do not see a smiley face, go to Tools on the menu bar and select Options. A popup will appear. After you mounted the robot on the first chart, you need to set up the second chart too. The installation of the second chart is the same as the first one, the only difference is the Magic number , and the Common tab option.
In the first chart — Only Buy, in the second — Only Sell. The percentage of account equity FGT is allowed to risk if the trade goes the wrong way. If you use other expert advisors on the same account, please ensure that each of them has a distinct, unique identifier.
So, the robot Forex Grid Trader is very profitable but highly risky. On the other hand, you will be required to have several positions opened at the same time if you want to profit from this type of trading strategy. This might not be suitable for all traders since it might be a bit too risky to keep a number of open positions. But managing your time properly and identifying the right rhythm of opening and closing positions can help you out with this issue.
Also, placing a stop-loss order within Forex grid strategy is sometimes overlooked and traders seem to completely forget about it. Stop-loss orders can come in handy and you should definitely spend some time placing them correctly in order to protect your funds. The most basic concept of the grid strategy is buying or selling within ten pips parameters around a trend. If a price moves ten pips above the trend, the order will be sold, and if it goes in the other direction, you will be advised to take profit before the price starts plummeting even more.
Forex grid trading strategy is very visual. Once you start your trading platform, adjust the settings you will need in order to use this method, and open up the charts, you will see how straight forward and easy it really is. You will be able to have all the details you need right there in front of you. First thing you need to do before you begin using this strategy is to make up your mind as to which asset you want to trade.
If you go for multiple assets, you will be spreading yourself too thin, since you have to work pretty hard in order to stay on top of all open positions that are spread over a grid. Secondly, in order for grid FX trading strategy to work properly, you need to have several positions open at the same time. This might cause a psychological pressure to traders who are simply not used to this type of trading, especially if the price keeps dragging under a trend line and it seems like it is never going to rise up.
What you need to understand is that in order to see the results of Forex grid strategy, you need to give it some time. If I started with for the 1st leg I would go to for the 2nd leg and for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend. However be aware of having the same number of sell and buy transactions.
Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again.
Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten. People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market.
Please feel free to contact Mary McArthur at marymcarthur expert4x. She has numerous examples of successful applications of grid trading This article is part of a series and many more will follow on Grid trading, money management and Forex Trading Strategies.