Understanding Forex Grid Strategy: A Complete Guide For Forex Traders
One of the many reasons is a popular way to trade the forex market is its ability to offer traders a lot of flexibility. For example, traders can do their trading in USD, EUR, GBP, JPY, or AUD without having to worry about which pair they bought into with the help of futures grid trading bots. Another great thing about this type of trading is that you will never have to check your account balances because all you need are numbers generated on your computer by the grid trading software. A bot can help manage all your investments, expenses and profits. Here are the steps to follow:
- Purchase A Solid Grid
You start by purchasing your grid. Remember that each grid consists of four rows and four columns. Each box on each row is considered as a single trade entry. Likewise, each box on each column also means that you have a single trade entry. The most basic grid trading system is a 4 x 4 grid with 16 total trades. You place a total of 4 trades on the first day of your grid trading system.
- Add Grids Day By Day
Once you have placed four trades on your grid with your futures grid bot, you move to the second day. On this day, you place another four trades. Then, when this is complete, you put your last two trades on the third day. This means that you will have completed a whole week's worth of trades by placing only eight trades in all just during the first two days. If we were to add another day or two to complete it, we would have 20 total tradings for one week now instead of just 16 for each day. That's a big difference.
- Establish Funds
You will have to establish how much money you want to make for every 1 point move in the forex market. If you want to make $50, your goal is to increase your account balance by 1 unit. If it expands by 1 unit, then you are making $50 likewise. If it only moves by 0.5 units, then your account balance only increased by $25 or so and so on. This is the basic system behind grid trading.
- Final Execution
The final thing is to remember when it comes time to execute your grid trading strategy is that each row represents one trade entry, and each column represents one trade exit. So when you put a trade-in on a row, you also want to set up an exit for that same trade entry on the same column. A good grid trading system like this means that your account is either up or down by 1 unit at the end of each day.
For trading purposes, you would always begin your first trade position at the top right corner and then exit it at the bottom left corner. Now you are all set to experience better earnings with forex trading with the futures grid trading plug-in bots.