What to do…

After another day of grid trading I’m once again changing my setup. One of the most successful, unorthodox, pairs in the past have been EURCAD. Well, that changed yesterday when, for some reason unknown to me, the EUR started to rally against the CAD, effectively destroying the GridBots selling trades and hitting the Safety Net. I know this was a risk of course, but I clearly had put a way too high Safety net, it should have been stopped earlier when it was starting the trend. But just this is really the weakness of the GridBot implementation since it’s completely trend unaware. So, after this experience I’m stopping the EURCAD pair for now, will have to collect more data in order to set a safer Safety net.

Other than that pair yesterday was a good GridBot day actually. It closed 4 out of 4 trades in GBPJPY in profit, and 2 out of 4 USDJPY in profit (but still made €6.06 on this pair). It also made money in AUDNZD trading 9 -23 (basically letting it be when Sydney is open). The other pairs made some and lose some, but nothing out of the ordinary. So if it just hadn’t been for EURCAD…

I’m going to keep running GBPJPY/USDJPY/CHFJPY/EURJPY at 18 - 3 GMT. I might adjust the lot sizes downward a few notches, because of the smaller account I have now (see “FD2 crashes and burns…” post earlier today, and EURCAD losses above in this post). I basically lost 1/3 of my account yesterday, and have to reduce risk, even for overperforming pairs.

I have seen a trend the last week where I think I can make alittle more by using a 4 level grid in GBPJPY. It would have made me one extra profitable trade every day trading as of yet, so I think it can be a good idea. Probably will try it in demo account for a few days before activating it in the live account.

I really hope that the developers of GridBot enables their hedging function (they have stated in their forum that they have it developed and that it is doing better than the current implementation, but hasn’t relesed it because of the NFA regulations about hedgning. That regulation only affects brokers that are regulated by the NFA. Alpari UK ofcourse isn’t), I think it would make the bot capable of handling sudden spikes better. I am also tempted by using the Swiss Army EA to modify the GridBots orders, setting S/L per order and in some cases increasing the T/P. As it is now we always get punished when a trend forms “the wrong way”, but never rewarded when it goes the right way (beacuse the T/P is to tight). I would like to see a gliding T/P in these cases when there’s a big move in the right direction.

Enough rambling now. I’m still believing in the Grid trading system, when used at the right market conditions.