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Gridtrading from daily open
https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=4666		 Page 12 of 37
Author:  TraderJoeForex [ Fri Apr 08, 2016 9:26 am ]
Post subject:  Gridtrading from daily open
Gertje » Fri Apr 08, 2016 8:10 am wrote: Great observation.
Sometimes the pair closes the basket before dawn, it is an idea to set the EA-timing so that it starts again at 0800 Global Prime time.
Is the basket still running, no new trades will be set.
Did the basket already close, a new grid will be sent to put the volatility to use.
:yahoo:
Really there is a potential of two baskets daily for each pair.. one for the session relevant to each each currency.
Author:  Gertje [ Fri Apr 08, 2016 10:01 am ]
Post subject:  Gridtrading from daily open
Zennor » Fri Apr 08, 2016 9:23 am wrote:EA needs a name change from Griddy Wotsit to Greedy Wotsit
:smile:
Now the sharper amongst you will notice my entry times, this is deliberate to negate the spread widening at midnight. You will also notice that unlike Gertje original trading plan this trade closed out after only 3 grids, this is because I have the grids set at 10% of the ATR and TP set at 50% of the ATR with increased lot sizing. By that I do not mean Martigale I mean I have increased to lot size for the trade to achieve the same result had I been chasing a 100 pip gain.

This means on the lower volatility pairs you are likely to be done on 3 grids and 4 grids with the higher volatility pairs.

This has the added benefit of the trade likely to have closed by the 0800 GP candle allowing further trades as per Gertje's idea for trades to benefit from the volatility should it exist.
Interesting idea's.

By setting the TP at 50% of ATR you mean the GlobalProfitPips or the distance from the startingposition where the grid was send?
Author:  Zennor [ Fri Apr 08, 2016 10:12 am ]
Post subject:  Gridtrading from daily open
Gertje I use the GlobalProfitPips set at 50% of the 20 day ATR.

Have attached my set file for the AUDJPY which currently has a 20 Day ATR of 124.

Grid is set at 12 pips with a TP of 60 pips, one of many which hit today. In fact every trade that I had set out last night in this manner hit TP before 0900 UK time this morning... :good:
Author:  Gertje [ Fri Apr 08, 2016 10:21 am ]
Post subject:  Gridtrading from daily open
Zennor » Fri Apr 08, 2016 10:12 am wrote:Gertje I use the GlobalProfitPips set at 50% of the 20 day ATR.

Have attached my set file for the AUDJPY which currently has a 20 Day ATR of 124.

Grid is set at 12 pips with a TP of 60 pips, one of many which hit today. In fact every trade that I had set out last night in this manner hit TP before 0900 UK time this morning... :good:
Thanks.

The more I think of it, it is a low-risk trading system.
The only downside is that one can get caught in DD for a period of time.

Sooner or later a ranging pair WILL get out of the range, and close the basket.
Author:  Zennor [ Fri Apr 08, 2016 11:00 am ]
Post subject:  Gridtrading from daily open
Gertje » Fri Apr 08, 2016 11:21 am wrote:
Zennor » Fri Apr 08, 2016 10:12 am wrote:Gertje I use the GlobalProfitPips set at 50% of the 20 day ATR.

Have attached my set file for the AUDJPY which currently has a 20 Day ATR of 124.

Grid is set at 12 pips with a TP of 60 pips, one of many which hit today. In fact every trade that I had set out last night in this manner hit TP before 0900 UK time this morning... :good:
Thanks.

The more I think of it, it is a low-risk trading system.
The only downside is that one can get caught in DD for a period of time.

Sooner or later a ranging pair WILL get out of the range, and close the basket.
I know exactly what you mean and have been given that some consideration.

When I first loaded and tried this I set default trades on the EURCAD, no settings regarding ATR so to my mind the grids are too big for this currency and TP set too high. I have two of these in place but did not set it up again last night, no idea why because had I done so it would have hit TP using ATR for the settings. I would have then used that TP to close out one of the days which it would have done because the market it pretty much ranging at the moment. Also I could quite easily close these two grids down right now and have little impact on the profits made so far. All just a case of managing the money.
Author:  Zennor [ Fri Apr 08, 2016 1:35 pm ]
Post subject:  Gridtrading from daily open
One of the huge benefits of utilizing the Globalprofittargetpips is that the market does not have to move a huge distance in order for you to hit your TP.

Below is an example of the AUDUSD which has a 20 day ATR of 98. So in the EA I set the grid to 10 pips and Global TP to 50 pips. From entry to closure the market moved a total of 27 pips and I banked 50 pips. All done in just 3 grids.
AUDUSD.jpg
Now of course it does not always go so smoothly but again even when incurring a losing trade the market again does not have to move much to negate the losing trade and close out with a nice profit. Below is such a case with the GBPUSD where one long and one short were triggered before deciding on a direction. This pair currently has a 20 Day ATR of 150. The total move from the sell trigger to hitting TP (75 pips) was only 88 pips just over half of the daily ATR.
GBPUSD.jpg
Author:  Gertje [ Fri Apr 08, 2016 1:41 pm ]
Post subject:  Gridtrading from daily open
I hear you, and have set a whole bunch of charts up for monday using the ADR for griddistance and TP.
I skipped the <100pips ADR charts, but maybe I'll add them to the mix after next week.

Before I didn't bother to look at lower volatility pairs, but you made perfect sence with what you explained this morning.
Author:  Bruster400 [ Fri Apr 08, 2016 3:15 pm ]
Post subject:  Gridtrading from daily open
Gertje » Fri Apr 08, 2016 11:21 am wrote:
Sooner or later a ranging pair WILL get out of the range, and close the basket.
The way this method could break is if you let the grid fill both sides - like when price goes in an expanding wedge filling a bit more each side without hitting TP. If it does this then you are fully hedged but unless price comes back to the middle of your grid you'll be sat on some serious DD. It's surprising how far price has to move the other way to recover. If price goes just 4 grid levels into one side, it will have to go to grid level 11 on the other side just to break even!

I've been playing with this a bit today and I like the recent thinking on using ATR for both the grid and for profits - the ideal is an OOTB setup on any pair. Given the need to avoid filling both sides of the grid, it looks like the grid should extend beyond 1 ATR if you're going to have a TP of 50% ATR. A grid of 2ATR up and 2ATRdown would give a reasonable buffer.
Author:  Bruster400 [ Fri Apr 08, 2016 3:48 pm ]
Post subject:  Gridtrading from daily open
Just to put some data behind my "2ATR" buffer assumption - I've just "looked" back at how this system would have performed on GBPUSD for year to date. Using a grid of 2ATR is each direction and a 50%ATR take profit, there were two occasions when the profit closed out on the penultimate grid level. It never went beyond 2 ATR but it got very close. This test assumes that you don't open another grid if one is open from yesterday so it's not complete by any means. 27 grids in total. I was using 12 trades in each direction but the results would be similar to this for a range of gridlevels numbers.

With some cautious settings this could get interesting!
DO_Grids_GBPUSD.jpg
Author:  Gertje [ Fri Apr 08, 2016 4:36 pm ]
Post subject:  Gridtrading from daily open
Bruster400 » Fri Apr 08, 2016 3:48 pm wrote:Just to put some data behind my "2ATR" buffer assumption - I've just "looked" back at how this system would have performed on GBPUSD for year to date. Using a grid of 2ATR is each direction and a 50%ATR take profit, there were two occasions when the profit closed out on the penultimate grid level. It never went beyond 2 ATR but it got very close. This test assumes that you don't open another grid if one is open from yesterday so it's not complete by any means. 27 grids in total. I was using 12 trades in each direction but the results would be similar to this for a range of gridlevels numbers.

With some cautious settings this could get interesting!
Hi Bruster,

What did you use for this test?

Regarding the 2xADR grid, GW will add a grid at the extremes with the right settings so you never run out of trades.
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