Free Grid Trading, The New Grid EA - page 7
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Sorry for not being active in this thread for the last couple of weeks.
Was very busy with other things (work).
I'm testing the latest version and will come back with results as sson as I have them.
Thanks Daniel for sharing this with us
Martin
Hmm, all I can see is that both pairs are working fine within one account.
All the triggers are hit and executed.
Maybe it's a coincident but it's working fine (as far as I can see)
EA is working fine overall.
It's doing exactly what it should do.
I live in Europe so no Fifo/hedginge etc troubles for me.
I use different brokers for different trades:
Buy EURCHF with GallantFX (good pos swap)
Sell AUDNZD with GallantFX (only broker I know with a pos swap on the sell site)
Sell EURCHF with ActivTrades (min neg swap)
Buy AUDNZD with FXDD or Alpari UK (zero or pos swap)
Swap can become important when trades will be open for a long time. Trading with the right brokers can overcome the problem of large swap costs.
Happy trading
Martin
Different "Medians"...
I read with interest how people were going on about the price that will / may exceed the Hi / Low and that it will cause you to lose your boots. So I went back to the GBP/USD Monthly chart and found 2 very interesting situations:
A. The first "range" and therefore GRID is marked on the LHS of the attached chart as "A" in Yellow. Notice that the 50% Fib level is within 1 pip of the calculated value.
B. It is the same in the second one as well, which is marked "<<<B" to "C" at the bottom.
B. The MEDIAN for the first "range" is 1.7086 and 1.7330 for the second "range" marked also with Fib-levels.
The actual MEDIAN is drawn in Aqua to show the accuracy of the Fib-levels.
Question #1.: Can we trade the latest level (1.7330) from the Month chart on any TF lower? Say H1 for instance?
Question #2. : Can we use a monthly-median for instance...........NOVEMBER had a Hi @ 1.6876 and Low @ 1.6260 with a MEDIAN of 1.6568? ("SUGGESTED Median" marked on chart)
Question #3. : If we look at the most recent Hi/Lows, you will have a High in August @ 1.7042 and a LOW in October @1.5706 which gives you a MEDIAN of 1.6374 which now becomes a more trade-able scenario or does it?
Still keeping in mind that the overall Median for the current "range" is 1.7330 and that the price may "break out" of the questionable range over August - October.
This is purely academic to me but a mathematical reply will be greatly appreciated.
Best wishes.
It's my personal opinion that a mathematical approach only works on pairs with a very strong relation (read economic relation). Grid trading on pairs with no relation is the most dangerous thing I can do. The range (different between the high and the low) is so large that you need a very large account. And you still have the possibility that the high wasn't the high or the low wasn't the low.
I think there are only two pairs that can be traded with grids principle: EURCHF and AUDNZD. And only because both economics are almost equal. I know Robominer developers uses exactly the same philosophy behind their product. Which is a mathematical approach.
So taking a pair like GBPUSD or EURUSD and define a range for grid trading will not work. I only use grid trading for both above mentioned pairs. With a grid of 40 for AUDNZD (need $25000 to trade 0.1 lots) and 20 for EURCHF.
Hello ValeoFX, The newgrid EA trades both longs and shorts depending on where you are, below the grid line you only trade longs and above it you only trade shorts.
I have trying other grid systems where trades are taken with the trend, buy stops above the median and sell stops below.
Your EA is trading the opposite way, against the trend, I suppose. Have you seen any difference in performance between the two? Which is a safer option?
Thank you.
@valeofx : It is very unsound to just calculate the median lines based on any monthly average of a given forex pair. The Median range should be the middle point of the range YOU want to trade. This assumes that you have established through technical or fundamental analysis that there IS a range you want to trade and you have already defined it before using the EA.
@martinsta : Sure, long term ranges should only be traded on pairs which are from similar economies. However I would doubt this is the case right now for the AUD/NZD with the AU central bank raising interest rates and the NZ central bank doing nothing it seems obvious that after the crisis the economies are no longer meant to be range bound. I would expect at least a 20-30% range extension if the fundamentals keep up as they are. You cannot simply expect for a pair to remain rangebound when there is clearly more demand for the AUD than for the NZD.
@IamTHAT : Well, the most sound approach depends on what YOU are doing. If you are following a trend away from the median, then using a grid system that follows the trend is the best thing for you. If you are seeking to exploit returns towards the median, then newgrid is the way to go. Surely, both types of grid systems WILL wipe your account if you use them as "set and forget" long term trading systems. In the long term it is NOT safe to assume either of both trading schemes. I remind everyone that grid trading is STRONGLY dependant on the discretion of the trader. Knowing what you are doing and basing your decisions on sound fundamental and technical analysis is the only way in which grid trading systems can be used with ANY success.
New Grid
Hi Daniel,
I have done a lot of back tests over the last week or so analysing your New Grid EA. I must say it is a simple and powerful approach to grid trading, and I am keen to join the discussion on how to create a consistantly successful method of trading using this EA as it was designed by you. I have some ideas that seem to show good initial results on backtests (specifically without the benefit of hindsight in creating the grid range).
But first I wanted to clarify the working of the EA. I notice in back tests that many times the EA misses out entering trades on one or more grid steps - and very often does not place trades over my short term test periods on any grid steps on one side of the mid range, yet if I relocate the mid range by 5 or 10 pips it will run these grid steps correctly...?
Also, I find the EA very often will miss the first grid step entirely on either side of the mid range.... not sure why this is happening and I am often forced to relocate my mid range line to get the EA to correctly activate trades in the grid steps.
Can you clarify why this might be occuring. Does it have something to do with the EA needing to pick up the exact tick to place a back test trade?? If so does this issue actually occur in live forward trading with this EA??
I will look to run the EA i forward testing some ideas from this week. Thanks for your help.
Tim
Agree!
But we have had this situation in the past more then once.
And someday NZ will follow AU again which will be result in the pair going to the center of the range again. But sure it's not said that the current top will hold. But I'm sure that it will get back to the center soon or later. And with a large account size I think now is a good moment to start grid trading on the AUDNZD wit a 40 or 50 grid and low lot size.
will see what it will bring!
Hello Everyone,
Sorry for taking so long to post back.
@martinsta. I was waiting for the news from the NZ central bank today. It seems that they will be hiking rates in mid 2010 and this puts them at the same level as the AUD so it seems that we could be heading back to mid ground territory if the fundamentals keep aligning. It may be an opportunity for the newgrid EA to rip some profits. Please post any screen shots or statements of your trades on this one Martinsta
.
@timmy. I really do not have any idea of what you are saying regarding the EA "not taking trades", "missing lines", etc. I have done forward and backtesting in which I have seen trades taken exactly as they should. Please post screenshots of the problems so that I can tell you what is wrong. Also provide the EXACT settings you are using and your backtesting statements. If the quality of your backtests is off it could cause the EA to mistrade due to gaps in price.
I hope everyone is having a blast with this EA
Thank you all for all the posts and the participation on the thread
Thorup,
Can you make the floating center EA "look back" by "number of bars" instead of "number of days"?
Jamal