Grid trading forex strategies

There are a variety of trading strategies. For instance, the moving average strategy, the Forex pyramid trading strategy or the buy low, sell high strategy. Now I will discuss the grid trading Forex strategies.

Trade into the trend with the grid trading Forex strategies

Some traders suppose grid trading Forex strategies will work in trend markets. It is similar to the pyramid trading strategy.

• Select the currency pair to trade. For instance, EURUSD, USDJPY
• I think that grid trading strategy requires forecasting of the market direction. So I will use a trend line to determine the dominant trend on the weekly chart.
• If there is an uptrend on the daily chart, I will only take a long position.
• If there is a general downtrend, I will only take a short position.
• Set the stop loss orders for 200 pips

But in fact it will also work in range markets.

Trade in a ranging market with the grid trading Forex strategies

• Draw support and resistance levels on the daily chart, I will find the support and resistance lines.
• Once I have identified a ranging market, I will trade with the grid trading strategy
• Novice traders decide to use 10 pip intervals. In fact, I will choose the grid levels, every 50 pips.
• I will buy near support and sell near resistance.
• I have to open a demo account and test the grid trading strategy.

EUR/USD range market from ctrader

I have reviewed some of the the key components of grid trading strategy, now it is time to plan the actual trade, and how to stay on track.

For example 

• I want to set up a grid on AUDUSD and the price is currently at 0.7392.
• I will use 0.01 to 0.02 lots for a $3000 account.
• I will keep a track record of trading, and then create a simple Forex trading spreadsheet to track and analyze trades.
• You are also free to increase or decrease the number of trades as required, change the interval and take the profits to anything you like.

Set up a grid on AUDUSD on daily chart from ctrader

• 1 December buy limit 0.02 @ 0.7392
• 13 December close 0.02 @ 0.7495
• 15 December buy limit 0.01 @ 0.7395
• 16 December buy limit 0.01 @ 0.7364
• 19 December buy limit 0.01 @ 0.7297
• 19 December buy limit 0.01 @ 0.7252
• 22 December buy limit 0.01 @ 0.7222
• 26 December buy limit 0.01 @ 0.7182 
• 29 December close 0.01 @ 0.7222 
• 4 January close 0.01 @ 0.7254 
• 4 January close 0.01 @ 0.7275
• 5 January close 0.01 @ 0.7310
• 9 January close 0.01 @ 0.7370
• 12 January close 0.01 @ 0.7442

Finally, if you are going to use Forex grid trading strategies, I’d encourage you to trade with a demo account. Because I think it is a good training way to learn forex grid trading.

Futher reading: What is the best leverage to use when trading with a $500 forex account?

Day trading entry exit techniques

How do you trade support and resistance?

The Time Frames of Trading