Overview
Forex grid trading is a strategy that takes advantage of market movements within a range. Grid strategy in Forex trading relies heavily on money management, rather than technical analysis of the charts, to generate profits.
Strategy
The idea is to open trades below and above the current market price at regular intervals and replace the positions that are closed out in profits with new ones. The orders typically include take-profit and stop-loss levels. Target pip amounts vary depending on the the instrument and the time frame traded. According to EarnForex.com, grid strategy is a “price action forex strategy.”
Benefits
Forex grid trading can be used with any instrument with minor adjustments to take-profit and stop-loss targets. There is no need to spend time on technical analysis. New positions are triggered solely by the previous closing of a trade. Programming robots for automatic trading is relatively easy with grid strategies.
Warning
Money management has an elevated significance in grid strategy. The feel for setting the ideal take-profit within strict money management rules, that is also profitable, can only come with experience. BabyPips.com says “When you trade without money management rules, you are in fact gambling”.
Incoming search terms:
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- Стратегия Forex Magic Grid