Discussion of article "Automated exchange grid trading using stop pending orders on Moscow Exchange (MOEX)"

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New article Automated exchange grid trading using stop pending orders on Moscow Exchange (MOEX) has been published:

The article considers the grid trading approach based on stop pending orders and implemented in an MQL5 Expert Advisor on the Moscow Exchange (MOEX). When trading in the market, one of the simplest strategies is a grid of orders designed to "catch" the market price.

The grid is characterized by the following parameters:

• grid width
• grid step
• take profit
• stop loss
  

The grid width is the area covered by the placed orders. Grid step is the distance between orders. Grid width and step are calculated in points. Thus, we have reached the definition of the grid method of trading. A trading method, in which the entry into the market is carried out using many orders usually located at the same distance from each other and on both sides of the current price is called a grid. 

Whatever direction the market price goes, it will still pass through the grid of positions. Profitable trades can accumulate up to a certain amount, but they can also be closed as soon as the price turns the next order placed on the grid into a market position. Placing next orders in the grid (for example, when the price moves up and triggers buy stop orders, as well as accumulates market position volumes with subsequent placing sell market orders closer to the price (updating the grid)) with subsequent small price downward rollbacks triggering sell stop orders performs the role of the so-called partial closing of the position, which is shown in Fig. 1.

Author: Roman Shiredchenko

[stuartfbs]

Добрый день. Очень интересная и информативная статья. Спасибо! Good day, a very interesting and informative article.Thank you.