So it’s been a slow kind of mover after an initial burst on my EURUSD short.
You’ll note the targets are now in pips from price which means you can see at a glance how far you are from your target. Anyway – here it is I took some profit out of it by moving my stop down as it’s so low. Currently @ 45 pips profit.
The Dangers of Grid Trading
I watched a very interesting trading video yesterday.
https://www.youtube.com/watch?v=yNw2d-ilFXY it shows an $85k real account wiped out!
I have always been worried about grid trading (that’s why I don’t do it) Grid trading normally works like this, if you know a pair generally heads bullish then when it moves bearish you put a lot of buy orders on. Then, when the pair heads back up it takes in your buy orders and then you take profit at the top before it turns down again.
So where it goes wrong is that if you have a pair lets say that drop 50 pips, come up, take your 5 orders and lock in your trades then changes direction fast back the other way you are left with 5 bad trades (unless you let them stop).
Sometimes these systems can make money for months on end and then lose it just as quick!
The video also shows how you can manipulate Myfxbook to only show what you WANT people to see. In this case the trader had hidden the live trades so that means that no -one could see how much his trades were losing at anyone time.
I did try out a system like this some time ago with bad results.
The SignalTrader Forex Trading System Robot works on some strict principles.
Firstly he identifies support and resistance using Macros, then looks @ the price and sees where it is, calculates stops using ATR and a moving average and decides if this is a trade he wants to take, then he waits for the SignalTrader Massive indicator’s streams to cross and takes the trade. He also makes trades safe and manages stops. He only trades with the trend so looking at the Signal line in the above chart he will only tread shorts below it and longs above it. Basically behaving like a trader.
(Without the emotions)
He does a few other things as well but I don’t want to let out ALL my secrets. (Some things he does are processed on external servers.
To find out more:-