Grid Trading Strategy and EA Robot MT4/MT5 - All about Grid Trading — Transcript

Full transcript

1. 0:00hello there Traders we are back with a
2. 0:02new video what if we could trade in the
3. 0:04market without considering which way the
4. 0:06market would be going and still make a
5. 0:08profit and you never have to worry about
6. 0:10any technical or fundamental analysis
7. 0:13sounds interesting right yes today we
8. 0:15are going to show you how grid trading
9. 0:17Works along with our F frz ultimate grid
10. 0:20maker EA that you can use to automate
11. 0:23the process let's get started there can
12. 0:25be many different ways of grid trading
13. 0:28the most bassic grid system consists of
14. 0:30placing buy pending orders above the
15. 0:31current market price and sell pending
16. 0:34orders below the current price at
17. 0:36regular intervals each order is
18. 0:38configured with a tack of profit equal
19. 0:40to the distance between the different
20. 0:41levels without any stop loss the lot
21. 0:44size would be the same for all trades
22. 0:46now you can see we will have trades
23. 0:48whichever way the market goes but there
24. 0:50is a risk the price could go in One
25. 0:53Direction activating our pending orders
26. 0:55but the price May reverse without
27. 0:57reaching the takeprofit of the last
28. 0:59activated order in this case we may
29. 1:01accumulate large unrealized gains basic
30. 1:04grid trading is more suitable for
31. 1:06ranging markets in a ranging Market the
32. 1:09price fluctuates within a relatively
33. 1:11narrow range without establishing a
34. 1:13clear Trend in either direction and
35. 1:15therefore you have a better chance to
36. 1:17complete all orders on takeprofit
37. 1:20furthermore there are some ways and
38. 1:22means that we can manage the risks which
39. 1:24we will discuss later in this video with
40. 1:26our EA the next common grid strategy is
41. 1:29head grid trading this strategy is
42. 1:32strictly for ranging markets and it
43. 1:34should not be used in strongly trending
44. 1:36markets in hedged Grid trading we place
45. 1:39both buy and sell orders at the same
46. 1:41time at each grid level usually we start
47. 1:45with a buy and a sell at the starting
48. 1:47price of the grid and then Place pending
49. 1:49orders for the required number of grid
50. 1:51levels no stop loss is used the goal is
51. 1:54to profit from the price differences
52. 1:56between the buy and sell orders while
53. 1:58minimizing the over overall market
54. 2:00exposur like in the basic grid type this
55. 2:03also comes with some risks look at the
56. 2:05following scenario this grid has four
57. 2:08trades with three levels after the final
58. 2:10level the price went in a strong uptrend
59. 2:13up to the take-profit level of the buy
60. 2:15four and then It reversed back to level
61. 2:17three where the grid was closed now look
62. 2:20at the result there are four profit
63. 2:22trades while there are three losing cell
64. 2:24trades and one break even sale with the
65. 2:27cumulative effect of the cell trades the
66. 2:29losses become 600 Pips while the profit
67. 2:32is only 400 Pips giving us a 200 pip
68. 2:35loss on the other hand look at this
69. 2:38scenario with just two levels where the
70. 2:40price turns after two levels now we have
71. 2:42two wins and one losing sell and one
72. 2:45break even sell totaling a profit of 100
73. 2:47Pips you will notice that if the price
74. 2:49gets into a strong Trend these hedged
75. 2:52grid strategies become too risky due to
76. 2:54trades with accumulating losses we will
77. 2:57also look at the risk mitigation methods
78. 2:59with our EA later in this video now
79. 3:02let's look at the third type of grid
80. 3:03strategy unlike the previous two grid
81. 3:06strategies this grid strategy is a trend
82. 3:09following strategy and therefore it can
83. 3:11be either a bullish or bearish Trend
84. 3:14following grid strategy these are
85. 3:17suitable for trending markets under this
86. 3:19strategy we enter the market in line
87. 3:22with the trend and then add a grid in
88. 3:24the trend's Direction with no stop- loss
89. 3:26but take profit which will be the same
90. 3:28size as the grid space
91. 3:30so we trade only in One Direction in
92. 3:32this case here is an illustration of a
93. 3:35bullish Trend following Grid in this
94. 3:37case you will notice that we first open
95. 3:39a Buy trade after determining the trend
96. 3:41is bullish and then add the required
97. 3:44number of grid levels with pending
98. 3:46orders this strategy will be profitable
99. 3:48as long as the price continues to go up
100. 3:50to complete all the trades with
101. 3:52takeprofit however the risk is that the
102. 3:55price could turn and run the other way
103. 3:57without going too far in the intended
104. 3:59Direction and now you know the common
105. 4:01grid trading strategies now it is time
106. 4:04to introduce our F frz ultimate grid
107. 4:06maker EA which can create and manage all
108. 4:09three types of grid strategies with many
109. 4:11features and risk management methods now
110. 4:15let's see how you can install and use
111. 4:17our EA first place the EA file under the
112. 4:21experts folder and refresh or restart
113. 4:23the EA then under the metatrader options
114. 4:26make sure you have added the given urls
115. 4:29then you can simply add the EA to the
116. 4:31chart and time frame of your choice
117. 4:34let's look at the EA settings and
118. 4:35features the EA can create all four
119. 4:38types of grids that we discussed you can
120. 4:40select the type of the grid under
121. 4:42setting one from the basic hedged
122. 4:44bullish Trend grid and beish Trend grid
123. 4:47on setting number two you can select
124. 4:49grid entry mode where you get four
125. 4:51options Option One manual entry in this
126. 4:55case you can click on the buttons given
127. 4:57on the screen to start the Grid at the
128. 4:59time time or price you like option two
129. 5:02specified price here you can set a
130. 5:04specific price to create the grid
131. 5:07automatically option three specified
132. 5:10time here you can set a time to create
133. 5:12the grid automatically for instance if
134. 5:14you want to start the grid when the
135. 5:16London session opens you can select this
136. 5:18option and set the London open time in a
137. 5:21later setting option four
138. 5:23indicator-based entry under this option
139. 5:26you can use an external indicator signal
140. 5:28to start the grid
141. 5:30for instance if you have an indicator
142. 5:32that shows an arrow or similar signal
143. 5:34for entries you can use that indicator
144. 5:36signal for starting the grid please note
145. 5:39only the indicator's default settings
146. 5:41can be used for this purpose under
147. 5:43setting three you can set the trading
148. 5:45volume per trade under setting four and
149. 5:48five you can set the grid space in Pips
150. 5:50and the number of grid levels
151. 5:52respectively then you get some entry
152. 5:54filters under settings six and 7even you
153. 5:57can enable and set the news filter fil
154. 5:59as per your liking please note the news
155. 6:02filter is not used in manual mode under
156. 6:05settings 8 you may use the trend
157. 6:07strength filter which is a variant of
158. 6:09the adx indicator since the grid systems
159. 6:12profitability could depend on the type
160. 6:14of Market this can be a useful option
161. 6:17higher Trend strength means a more
162. 6:18trending market and lower Trend strength
163. 6:21means a ranging market usually Trend
164. 6:23strength above 20 is considered trending
165. 6:26and less than 20 is considered to be
166. 6:27ranging markets for instance if you are
167. 6:30using the hedged grid system then you
168. 6:32would need a ranging market so you can
169. 6:34set the setting 11 as 20 or less so that
170. 6:37the EA will not trade unless Trend
171. 6:40strength is lower than the given value
172. 6:42on the other hand if you are using a
173. 6:44trend-based grid system you would want a
174. 6:46trending Market in that case you may set
175. 6:49the setting 10 as 20 or more than the EA
176. 6:52will only start the grid if the trend
177. 6:55strength is more than the given value
178. 6:57also on setting 10 you can also set the
179. 7:00time frame to check this trend strength
180. 7:03if required you need to set the time
181. 7:05frame in minutes here and zero means the
182. 7:07current time frame for instance assume
183. 7:10you are setting up the Grid on the M15
184. 7:12time frame but you want to make sure the
185. 7:14m30 chart is ranging or trending then
186. 7:17simply put 30 under setting 10 however
187. 7:20please note that mt4 does not allow back
188. 7:23testing with multiple time frames but
189. 7:25you can use a different time frame on
190. 7:27live trading however mt5 allows back
191. 7:31testing with different time frames now
192. 7:34let's look at detailed settings for each
193. 7:36grid entry mode in case you selected the
194. 7:38price level based entry then you can set
195. 7:40the price under setting 12 in case you
196. 7:43selected the time based entry then you
197. 7:45can set the time under setting 13 in
198. 7:48case you selected an indicator-based
199. 7:49entry then you can add the indicator
200. 7:52name it's buffer or color ID of the
201. 7:54signal the candle ID to watch and the
202. 7:57time frame for the indicator under under
203. 7:59settings 14 to 177 color or buffer ID
204. 8:03can be found under the colors tab of the
205. 8:05indicator settings by default the EA
206. 8:08will look at the last completed candle
207. 8:10for any entry signal which you may
208. 8:12increase if your indicator shows the
209. 8:14signal later than the last candle and
210. 8:17now let's look at how you could manage
211. 8:19risk with your grid as we previously
212. 8:21discussed grids can be risky if the
213. 8:23price is not behaving in the way you
214. 8:25initially intended these risk management
215. 8:28options will allow the user to close the
216. 8:30grid before all the orders are closed by
217. 8:33take profit if it appears the grid is
218. 8:35not going to end in the way we intend so
219. 8:37that we can mitigate the risk you can
220. 8:40close the grid upon reaching a certain
221. 8:42profit or loss Level under setting 18 to
222. 8:4621 then you get the option to close the
223. 8:48grid if your account reaches a certain
224. 8:51Equity draw down percentage under
225. 8:53settings 22 and
226. 8:5423 then you have the option to exit the
227. 8:57Grid at some specific time under
228. 9:00settings 24 and 25 for instance you can
229. 9:03close the Grid at the end of the day if
230. 9:05you enable this and set the time to
231. 9:082359 and also you have the option to
232. 9:11close the grid based on an indicator
233. 9:14signal the indicator setup is similar to
234. 9:17the entry indicator signal you can
235. 9:19simply add the indicator name exit
236. 9:21buffer number candle ID to watch for the
237. 9:23signal and the time frame for the
238. 9:25indicator under settings 26 to 30 and
239. 9:28find finally you have the option to
240. 9:30close the grid based on the age of the
241. 9:32last open trade under setting 31 to 33
242. 9:36if a trade is going the other way and
243. 9:38taking a lot of time while increasing
244. 9:39draw down then it may be a better idea
245. 9:42to exit the grid you can simply enable
246. 9:44this and then set the time in minutes
247. 9:47you also have the option to close the
248. 9:49grid under this scenario only if the
249. 9:51grid has at least reached a break even
250. 9:53level now we have learned about the
251. 9:55settings and let's run the EA let's see
252. 9:58how you can can manually create the EA
253. 10:01we are using the basic grid type with
254. 10:03default lot size space and levels let's
255. 10:07select the manual mode now simply click
256. 10:09on the manual entry button you will see
257. 10:12that the grid is created as per the
258. 10:14settings you can also see important
259. 10:16details of the Grid in the left bottom
260. 10:18corner of the screen you can close the
261. 10:20grid with the close
262. 10:28button
263. 10:30now let's see how we can create a
264. 10:32trend-based grid where the entry is
265. 10:34based on an indicator signal we will be
266. 10:36using this super Arrow indicator for
267. 10:39this test for this video we will use
268. 10:41doing a back test what we want is to
269. 10:44start a bullish trend-based grid when a
270. 10:47bullish signal is generated by our
271. 10:48indicator as you can see our buffer or
272. 10:51color ID for the Buy Signal is two so we
273. 10:54need to update this number under
274. 10:56settings also we need to select the
275. 10:58bullish trend-based grid for Simplicity
276. 11:01let's keep the default grid levels space
277. 11:03and lot size and set the EA for the
278. 11:06indicator now let's run the back
279. 11:10test you will see that the EA opened a
280. 11:13grid when the indicator provided a bu
281. 11:15Arrow likewise you can create various
282. 11:17types of grids and automate the process
283. 11:20with our EA it is available for both mt4
284. 11:23and mt5 with a free demo and the
285. 11:26download link is given in the
286. 11:27description if you have any questions
287. 11:29drop them in the comment section below
288. 11:32that's all for today thanks for tuning
289. 11:34in and see you around