Grid Trading Lite EA 6.0
Metatrader Expert Advisor (MT4)
Grid trading 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. It requires no market timing or complicated analysis, but rather, the ability to forecast where the market won't go in the long term and a good understanding of equity, exposure and leverage.
- 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
The Grid Trading Lite EA implements basic features:
- Grids can be closed at the trader's discretion
- It doesn't trade open ended grids, exposure is limited
- The EA can manage buy and sell grids simultaneously
- No pending orders are placed: only market orders
- The grid is liquidated completely when it goes off-range
It is a reduced version of the full Grid Trading EA, which is much more flexible in usage and input parameters. It implements multi-directional grids with different settings for trading direction, different trading behaviors, profit targets and many other useful features covered in the user guide.
Differences between lite and full version
Feature Lite version Full version Maximum trades in grid 20 Unlimited Maximum lot size per trade 0.10 Unlimited Fully customizable input values No Yes On-chart information about deals No Yes Take-profit for each trading direction No Yes Take-profit for bidirectional grids No Yes Grids can be paused No Yes Grids can be averaged down No Yes Customizable cash-in multiplier No Yes Automatic grid spacing feature No Yes Customizable price limits No Yes Price Free $299
What is grid trading?
Grid trading has become very popular amongst traders because it does not use stops, is highly mechanical, has no reliance on direction, uses the intrinsic wavy nature of the market, does not require indicators or charts to trade and can be easily automated. Grid trading refers to the trading approach which uses fixed price levels to enter and exit trades.
On the bright side, a grid trading strategy can profit from the same absolute market movement several times and can even make money if the market is moving against your grid. On the downside it can appear complex and illogical initially, it can incur large drawdowns if poorly managed, requires more patience than normal and may require forex traders to make a huge paradigm shift it their thinking.
Once a grid has been allocated, the system will cash-in profits every time the market moves the desired spacing and replace the trade as soon as possible to repeat the process. Hence, the expert advisor can cash-in the same price movement several times, capturing up to four or five times more profits than a single trade with the same exposure.
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 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.
How to set up a grid
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.
- 1. Load the EA to the chart
- The EA will start trading with default settings, but you can change them.
- 2. Choose a trading direction
- If you think the market is going up or is close to a support level, you can start a Long grid. Likewise, if you think the market is going down or is close to a resistance level, you can start a Short grid. If no trend is present, you might want to start a bidirectional grid.
- 3. Choose the grid size, spacing and lot size
- Enter the desired grid size, spacing and lotsize into the expert advisor. For live trading, a spacing somewhere between 80 and 200 pips is recommended. These parameters directly affect the equity risk of the grid, which is displayed on the top-right corner of the chart. You should change these values, decreasing trades, spacing and/or lotsize until the risk of the grid is less than 50% of your account. If not, the EA will not trade.
- 4. Done
- Once the EA is loaded with your settings, if the risk is not dangerous, it will start trading and cash-in trades at regular intervals until the market goes off-range or until you decide to close the grid.
The Grid Trading EA offers many other options such as profit targets, different settings for each trading direction, cash-in multipliers, price limits and different behaviors. Consider buying it for live trading, as the adaptability it offers is almost infinite.
- ≡ Input parameters
When loading the indicator or EA to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Trading Direction
- The trading direction sets the behavior of the grid. The grid can be long, short or bidirectional. Each grid can have different settings, which values are examined below.
- Grid Size In Trades
- This is the amount of trades in the grid.
- Grid Spacing in Pips
- The spacing, 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.
- Grid Lotsize
- This is the lot size for each trade of the grid.
- Colors and sizes
- This parameter block sets the color and sizes for labels and lines.
- EA Settings
- If you know what you are doing, you can change the Magic Number of the EA, the comment for the trades and override the value of one pip, which can be useful if you are trading CFDs.
- ? FAQ
- Should I use this Expert Advisor if I ignore what grids are?
- Yes! This simple expert has been made for you to learn what grids are.
- Is grid trading a martingale?
- No, it is not. There is no intrinsic difference between a trade of 0,20 lots and 20 concurrent trades of 0,01 lots. A strategy is a martingale inasmuch it deals with independent events with fixed probability of occurrence and payoff. Grids, however, use a constant lotsize per trade.
- I have heard that grid trading is dangerous. Is it?
- Yes, it is: just like any other powerful tool. Poorly managed or allocated grids can decimate your trading account. However, if properly used, grid trading is not only safe but very profitable because it provides almost unlimited adaptability to what the market is doing. The key is not using too much leverage.
- Is grid trading NFA FIFO compliant?
- No, it is not.
- Can I set the stop-loss for each trade or for the grid?
- No, you can't. Make sure to configure the grid properly: the total grid exposure must never be above three times your account equity and the grid range has to be wide enough to reach a strong support or resistance.
- ✎ Comments
Keep comments tidy and respectful. Avoid spam, offensive remarks, self-promotion and posting personal or payment information. The comment section is for discussion and questions only. Please note that we'll never solicit payments in the comments section.