Having spent a fair bit of time looking at this problem I firmly believe that the only aspect this system needs now is a viable Stop Loss function to reduce the hefty draw-downs.
Where possible I have manually been closing down trades whenever 3 grids have triggered irrespective of direction on the furthest grid from the last activation.
Let me explain, say the grid goes down 3 grids, upon the activation of the 3rd grid a Stop is placed at the first sell grid.
Price goes down one grid and up two grids, SL placed at the first Sell grid. If price goes up 3 grids SL placed at first buy grid, price goes up 4 grids SL placed at 2nd grid and so on a bit like a trailing SL.
Seems to make sense.
I would also like to see a global stop loss function in pips and cash. Then we can set the risk we are comfortable with, shut a losing basket, and be ready to take the next trade.
I have been watching the ADX indicator which seems to always be green when I look - I am going to start playing with the ADX level. Can I check whether my logic could be a way to avoid ranging markets - instead of setting a pending grid for a pair by time would it be possible to set to trade for 24 hours and set a higher ADX so that a pending grid would be sent when volatility increases. Of course the next question would be what ADX? If the predicated volatility doesn't follow through and no pending orders are filled, the pending grid could be removed after a certain amount of time had elapsed. |
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