Hedged Grid Version 2.6 Buy Free Demo


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299€

199€

  • Current version2.6
  • Last updateSeptember 2017
  • Published December 2016
  • Tags

    Grid

1. Description

Hedged-Grid 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.

  • 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

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 Gap or 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.

2. Features

The Hedged-Grid cBot has a set of unique features:

  • You decide which direction to trade: long, short or both
  • High volatility filter based on spread
  • The Robot can manage buy and sell grids simultaneously
  • Grids can be closed or paused at the trader's discretion
  • It doesn't trade open ended grids, exposure is limited
  • The grid configuration can be changed on the fly
  • No pending orders are placed: only market orders
  • It works for forex, cfd's and futures
  • Ability to interrupt and restart the robot.
  • The robot uses an in-house built library for managing trade requests that protect the robot against lost connections and failed requests.
  • If a Trade Request have failed due to any connectivity issue, the robot will detect the failure and it will retry until successfully sending the request, while protecting the integrity of the grid system. The system is a real set and go system. No monitoring is required.

  • The robot will function seamlessly on any Symbol and on any Time-Frame.

3. Backtest & Results


Description:   This backtest was run on bearish market profile. Only the Sell grid was activated. This key is to detect that the market has reached a reversal point from a bullish trend. Furthermore the Lot size used is 0.04 which increases profit but slightly increases Equity Drawdown ~= 10%

Symbol:   EURNZD

Period:   01/09/2015 - 24/12/2016

Starting Capital:   €5000

Commission:   35 per Million

Data:   Tick Data from server

Download parameters used for this backtest 


Description:   This backtest was run with both Buy & Sell grids activated because the market profile is ranging.

Symbol:   EURNZD

Period:   01/01/2016 - 26/03/2016

Starting Capital:   €5000

Commission:   35 per Million

Data:   Tick Data from server

Download parameters used for this backtest 

4. Installation Instructions

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.

  • Copy the downloaded .algo file into your cAlgo Robots Sources folder : cAlgo/Sources/Robots
  • -- OR --
  • Double click the downloaded .algo file. This already installed cAlgo/cTrader platform will install it
  1. Launch cAlgo or cTrader and verify you have the file Hedged Grid_v2.6 in your robots list on cAlgo
  2. You are ready to go!

5. Parameters

Enable Buy Grid Enable/Disable Long Grid
Buy Pips Apart The spacing for long grid, 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
Enable Sell Grid Enable/Disable Short Grid
Sell Pips Apart The spacing for short grid, 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
Buy Volume This is the lot size expressed in Volume for each trade of the Long grid.
Sell Volume This is the lot size expressed in Volume for each trade of the Short grid.
Breakeven Shift (Pips) The breakeven shift parameter controls the number of pips to shift from breakeven level on each grid. If the value is 0 then a grid will close on breakeven with no profit. If the parameter is set to 5 for example the grid will close with 5 pips in profit.
Max Spread The Spread Filter eliminates the openings of positions in highly volatile times when the spread exeeds the set value

6. Frequantly Asked Questions


No, you should not. Grid Trading is for amateur traders and beyond.
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 in as much it deals with independent events with fixed probability of occurrence and payoff. Grids, however, use a constant lotsize per trade.
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.
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. You can, however, stop all trading activity manually on certain drawdown levels.
The breakeven shift parameter is the number of pips to add or subtract from the breakeven level of a Grid. When this parameter is be closed when its overall net profit is equal to zero. When it is set to 5 for example the Grid will be closed 5 pips above its zero net level, which will add some profit but also add some risk by increasing the number of retracement pips required before the grid can be closed.
It is set to the number of pips in "Pips Apart" parameter value.

7. User comments


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