Pending grid system

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Good day to everyone.

I want to share a system I'm working on.

Generally, before European open (7:00 GMT) the forex market is slow, let's say before 5:00 GMT. Then it increases movement, and normally most pairs are going up or down, most times only one way, specially when news are released.

Well, this system is based on put pending orders around 4:00 GMT with a MT4 script, above (buys) and below (sells) the actual price when the market is still slow. The minimum distance from actual price to the first pending order is indicated in the script as "LevelDistance". This way we let enough space for market noise until it finally goes up or down.

The pending orders are putted in two groups: the first group is the closest to the market price, and it has a bigger lot size (for instance 0.02 lots, with a microlots account). each pending order is an amount of pips (for instance 5 pips) away from each other ("gridspacing" in the script). I'm actually using TP 40 and SL 80 for this group.

The second group has smaller lot size (for instance 0.01 lots), and it beguins from the limit ("gridupperlimit" and "gridlowerlimit" in the script) where the first group ended, until the second limit indicated in the script ("gridupperlimit2" and "gridlowerlimit2"). I'm using TP 30, SL 60 in this second group.

In that way, it forms a grid of buys and sells, and the closest ones to the price, that actually have more chance to get the TP, are bigger.

CONDITIONS:

: Activate script approximately at 4:00 GMT. Put your variables, and go sleep.

: Use pairs with a wide daily range movement specially in European session, such as EURJPY, GBPUSD, GBPJPY. I search pairs that have recently at least 120 pips of average daily range. I attach the TSR daily range indicator, very useful to watch this.

: Watch if there are news for those pairs in european session. We need large movements for this system. If there is no significant news, don't trade or reduce the number of pending orders.

:Watch close support and resistance points before put your limits, having in mind your TPs.

: Don't matter if a pair is going up or down!. Just reduce one way or another if the pair is overbought / oversold.

: You can put trailing stops, specially on the second group, in that case you can wide your TP.

: You can use it too in any news, like NFP. Just assure if your broker respects the prices, and how the spread widens.

: I recommend to use this system with a microlot account. I use it in many pairs at once, or I can increase microlot size.

: It uses Expiration hour ("horas_expira"), I normally use 6 hours, depends on news releases. Sometimes I wake up at 9:00 GMT (I'm in Colombia, at that hour I'm sleeping), I close profit trades and erase the pending ones, or I put a trailing stop to them.

: Use it first on demo!!!. A month is recommended.

Put script "Pending_grid_multiple_1.0.mq4" in the ...\experts\scripts folder in your MT4 directory

Put indicator "(T_S_R)range2 .mq4 " in the ...\experts\indicators folder in your MT4 directory

Any improvements, questions, settings, etc. are welcome. I'm going to upload updates here in the first post, if there are any.

I'm not a programmer yet, I'm trying to learn. I have taken and messed this script from other scripts (like pending_orders from metaquotes, and another I don't remember where it came from), and modified it. If you see any error, you are welcome to tell me.

Good trading to all.

Marcel

 

First week

I'm showing the first week of the system. us$500 demo microlot account.

I know it has a high DD, but it's just a $500 account and many pairs were ranging some days. I had better results last month, but I've lost my statements. . Otherwise, $236 in five days (almost 50% profit) it's not bad at all.

 

First week statistics per pair

Here are the statistics for each pair for the first week.

Don't take the XAUUSD statistics, because it was only one day (terrible day for gold). I didn't try again that pair, but I'm gonna test it in another account with different settings.

The GBPUSD is almost even, but I swear it was a good pair last few months to trade with this system.

As you can see, there was a total of 1712 pips in a Week, of course there was just $236 because I use microlots for that tiny account.

GBPJPY has a huge spread, but you can see it worth, as it makes double of trades of other pairs.

Well, guys, if you can test this system in larger demo accounts with minilots, and tell us the results here, I'll appreciate very much.

Be aware that if you have each 5 pips pending orders, and you have 40 pips TP, you may have 7 open trades at once. And if you have 5 trades for the first group (0.02 lots in microlots account), plus 2 trades for the second group (0.01 lots), you'll have 0.12 lots opened in the same time for each pair. Be careful with your money management and minimum margin. For miniaccounts, it will be equal to have 1.2 lots per pair.

Happy trading.

Marcel

 

Nice. Thanks for sharing.

FerruFx

 

hello

Hello Marcel,

thank you for your strategie.

I have trie to test it in tester, but the EA is very slow because to many orders are send with the while() slope, can you please give me the rules in words how the order must be exact open with your strategie, than i would like trie to build a own EA for testing and can also put the EA then here for download if you want?

Regards

Tim

 

Well, this is a script, semi-automatic system (not EA), I don't think it works like EA, for three reasons: first at all, you need to watch support and resistance points in order to calculate your limits; the idea is the far pending order reaches its TP before important supports or resistances. Second, you need to watch if there is news in the european session, and how relevant are. Third, you'll need to operate only from approx 7 to 11:00 GMT, when the market usually goes in only one direction (well, this last can be done by en EA). But if you have seen this system for another point of view, welcome your effort. I'm an idealist, that think that if a lot of people we work together, we'll build a great strategy which can benefit all of us.

Otherwise, the function "while" I'm using is to cycle putting pending orders each 5 pips, "while" it reaches the limit. If you apply the script, you can see that it's faster than putting orders with an EA (that's my impression), in that way that the code has a 10 seconds sleep between trades, because the broker (MT4) may reject the trades if there are too fast between each other. If you build an EA, that function can be erased, I think. Kick me with your opinions if I'm wrong.

 

I was thinking... sleep =10000 are ten seconds? because I have seen least time between trades, even in real account.

 

This week at the same time I'm gonna try same system with trailing stop (25 pips for 0.02 lots (first group) and 15 pips for 0.01 lots), with TP 100, same SL. Daily I'll publish the results.

 

Results for monday

Here are the results for last night.

There was a lot of movement prior to European session, with some countertrend movement causing a lot of losses, but tha account was almost even.

Tht's why it's better not to trade when there are no significant news at night. Anyway I'm gonna test the system every day, to see how is its behavior in worst cases escenarios.

Profit until now: $238.90 (base $500, 6 days, microlots account).

 

Well, I don't know which minimum margin FXDD requires, but it has stopped me out all my trades last night, of course the account felt to $550. Never happened with Interbank demo, but this last doesn't work with my strategu because of the widened spreads during news.

That changes my strategy, at least with FXDD. I'm gonna beguin again with $500, only 1 pair (GBPJPY) while I'm searching a good microlot broker.

Results until now:

 

I use InterbankFX for my LIVE account, Micro and Normal, and they are very good. Have had no problems.

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