Grid Martingale trend following
is a basic and simple grid trading. The purpose of this trading
system is is to follow the trend and its breakdowns.
Time Frame 60 min.
Grid range 20 pips (AUD/USD, USD/CHF,
EUR/USD) 25 pips (USD/JPY, GBP/USD).
Currency pairs: AUD/USD, USD/CHF,
EUR/USD, USD/JPY, GBP/USD.
Indicators
EMA 25 period, High.
EMA 25 period Low.
MACD (6,17, 5).
Buy signal
First, price
crosses the upper line of the channel
Second, the MACD
crossing above the zero line.
Place in buy stop
order at next level of the grid.
Option exit:
- place stop loss at the previous line of the grid and two take profit at the next two levels of the grid;
- place stop loss at the previous line of the grid and take profit at the next level.
Sell signal
First, price
crosses the lower line of the channel
Second, the MACD
crossing below the zero line.
Place a sell stop
order at next level of the grid.
Option exit:
- place stop loss at the previous line of the grid and two take profit at the next two levels of the grid;
- place stop loss at the previous line of the grid and take profit at the next level.
The MACD help us
to filter false signals.
Close all
positions if the price retrace into the channel.
This trading
method based on a grid in trend is professional, why not aggressive
and easier to manage. In other words I define this method of soft
hedging. This is a basic idea.
The multiplier of
the martingala is 2.0. ( the progression order: 0.01, 0.02, 0.04,
0.08, 0.16, 0.32, 0.64, 1.28, 2.56, stop orders.)
In the first chart
we have 3 Sell total profit of 60 pips.
In the seconde
example AUD/USD we have 5 trades: total +40.
In the third
example AUD/USD we have 4 trades: total +80
In the last
example AUD/USD we have 5 trades: total +60
Grid martingale trend following
was created by Emiliano La Rocca, independent financial technical
analyst and coder.
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