49€
- Current version2.7
- Last updateJanuary 2021
- Published December 2016
- Tags
Grid
1. Description
Hedged-Grid is a highly profitable and mechanical trading strategy which has no reliance on direction, profits from volatility and uses the intrinsic wavy nature of the market.
- Easy to set up and supervise
- No indicators or hard analysis needed
- Grid trading is time-frame independent
- Requires little forecasting of the market
- Extracts money out of the market regularly
Anatomy of a trading grid
A grid is nothing more than a single deal or position segmented into several trades, which are cashed out independently from each other at regular intervals. This allows us to profit several times from the same absolute price movement. All grids have a set of basic variables which define their structure and behavior:
Grid Size
The grid size is the amount of trades the grid can allocate. A grid has normally between 10 and 25 orders. Open-ended grids should not be used, as the total market exposure cannot be controlled.
Grid Gap or Spacing
The spacing is the gap in pips between trades of the grid. Such trades are generally spaced at 20-200 pip intervals. Big intervals are stable, can cover wide price ranges and are the best choice for live trading. On the other hand, small intervals are aggressive and more suited for trading championships.
Grid Lotsize
The lotsize for each of the trades of the grid.
Grid Range
The grid range is the price distance covered in total by the grid. For example, a grid of 20 trades with a spacing of 100 pips covers a range of 2,000 pips.
Grid Exposure
The grid exposure is the theoretical market exposure acquired if the grid is fully allocated. For example, 20 trades of 0,01 lots represent a total exposure of 0,20 lots, or 20,000 U.S Dollars.
2. Features
The Hedged-Grid cBot has a set of unique features:
- You decide which direction to trade: long, short or both
- High volatility filter based on spread
- The Robot can manage buy and sell grids simultaneously
- Grids can be closed or paused at the trader's discretion
- It doesn't trade open ended grids, exposure is limited
- The grid configuration can be changed on the fly
- No pending orders are placed: only market orders
- It works for forex, cfd's and futures
- Ability to interrupt and restart the robot.
- The robot uses an in-house built library for managing trade requests that protect the robot against lost connections and failed requests.
- The robot will function seamlessly on any Symbol and on any Time-Frame.
If a Trade Request have failed due to any connectivity issue, the robot will detect the failure and it will retry until successfully sending the request, while protecting the integrity of the grid system. The system is a real set and go system. No monitoring is required.
3. Backtest & Results
Description: This backtest was run on bearish market profile. Only the Sell grid was activated. This key is to detect that the market has reached a reversal point from a bullish trend. Furthermore the Lot size used is 0.04 which increases profit but slightly increases Equity Drawdown ~= 10%
Symbol: EURNZD
Period: 01/09/2015 - 24/12/2016
Starting Capital: €5000
Commission: 35 per Million
Data: Tick Data from server
Download parameters used for this backtestDescription: This backtest was run with both Buy & Sell grids activated because the market profile is ranging.
Symbol: EURNZD
Period: 01/01/2016 - 26/03/2016
Starting Capital: €5000
Commission: 35 per Million
Data: Tick Data from server
Download parameters used for this backtest4. Installation Instructions
Grid trading is much more profitable and safe if grids are allocated and configured manually by a responsible trader. To set up a grid, just follow the next steps.
- Copy the downloaded .algo file into your cAlgo Robots Sources folder : cAlgo/Sources/Robots
- -- OR --
- Double click the downloaded .algo file. This already installed cAlgo/cTrader platform will install it
- Launch cAlgo or cTrader and verify you have the file Hedged Grid_v2.7 in your robots list on cAlgo
- You are ready to go!
5. Parameters
Enable Buy Grid | Enable/Disable Long Grid |
Buy Pips Apart | The spacing for long grid, also known as the gap, is the distance between the trades of the grid, and it is also the profit target for each individual trade. For live trading, a spacing between 80 pips and 200 pips can be considered safe |
Enable Sell Grid | Enable/Disable Short Grid |
Sell Pips Apart | The spacing for short grid, also known as the gap, is the distance between the trades of the grid, and it is also the profit target for each individual trade. For live trading, a spacing between 80 pips and 200 pips can be considered safe |
Buy Volume | This is the lot size expressed in Volume for each trade of the Long grid. |
Sell Volume | This is the lot size expressed in Volume for each trade of the Short grid. |
Breakeven Shift (Pips) | The breakeven shift parameter controls the number of pips to shift from breakeven level on each grid. If the value is 0 then a grid will close on breakeven with no profit. If the parameter is set to 5 for example the grid will close with 5 pips in profit. |
Max Spread | The Spread Filter eliminates the openings of positions in highly volatile times when the spread exeeds the set value |