Hey Bill,

I have been reading a lot of good and apparently bad things about "grid-trading" which after days of reading still hasn't really formed a solid concept in my strained brain. What I am seeing is a lot of talk about "hanging trades" that continue to lose ground as the EA/system passes through time. I'm assuming that you use opposite directional hedges to address this but I am still confused about that... (remember I am a self-professed noob at this game >_>)

Also, in your checkgrid faq you mention that disassembling a grid is costly... I guess my question is how costly? Like, entire trading account costly? I guess the costs are not easy to calculate and are related to your open positions and where they stand.

I saw mention of some people doing "burst grids" which would close-out at a pre-prescribed time interval and prune any loser hanging trades. Would this be similar to your scalping method?

And finally (if you have gotten this far, and I apologize for the long message) I joined your pacificforex yahoo group but the checkgrid EA listed there (v1.8) is expired... how can I get a version that I can use to start wrecking demos? ^^

Thanks again and I hope this wasn't a 6 pack message... I've gone through about 3 trying to re-read this thread so far XD

Grids... sigh... ok, they are simple on the surface, but very complex. If you are a newbie, it is like taking driver's education training in a Formula One car...

One MUST choose the correct grid plan in advance - trend or counter trend. Hanging trades are from markets that go opposite of a grid set up. Burst grids are from countertrend grids in a breakout market.

How much is costly? Yes, entire account costly is quite possible.

There are many grid variations out there, as well as some hedging strategies. The hedging strategies are for emergencies, but are often used to simply cover for poor market style and/or direction choices. Focus on that first and you will be ok.

I will get a new version online for you. Just pop back into the group tomorrow.

Take care,
Bill

Thanks a lot Bill, I know you are probably busy so I really appreciate you taking the time to answer my questions. From the fact that you didn't already upload the an up-to-date copy of the checkgrid EA, can I assume that there isn't a lot of new consumer interest in it? I guess that was more of a rhetorical question than anything ^^;;;

Anyways, from your response I suppose that grid trading is a little over my head? Do you suggest that I stick to simpler methods until I get a taste for actual trading? I really do plan on proper planning and I am going to calculate all your homework assignments by hand (math and graphing is fun to me which is a strange hobby I know). I just don't want to give up because I can see the potential in your grid EA, even if I don't understand all the details yet. Anyways, Cheers and good trading =)

P.S~ how is your company coming along? And, what kind of beer do you like? Just getting prepared ^_~

Yeah, with the soaring energy prices and carbon credits, his wind farm should be making a killing by now. Give us an update on your business plan.

Hi,

I think the one online was working - my records show it was good through 9/3/08. But, it was easier to just upload a new one. Grid trading enthusiasm goes in cycles. And, traders are often attracted to the high energy, "give me your money now", sites.

I don't think grid trading is beyond you or anyone. To extend the car analogy, it wouldn't hurt for a newbie to get in a Formula One simulator and practice all they want. They can't get hurt. That is what practice accounts are for. Too many new traders have a couple of great days and jump in live - then get crushed. No matter what you do, it should be several months and many blown demo accounts at least before you touch live money.

The company... see the next post.

Beer is usually an import. Don't drink Bud or anything like it, or lite beer. Yuck.

Trade carefully,
Bill

The plan is still a great plan... No business yet. That sucks...

I have had endless time wasting "negotiations" with:

1) "investors" who claim to have the funds and interest, but get very greedy, wanting so much of the project that it is no longer viable. Once I ask them for a proof of funds, they usually lose interest quickly, or I am contacted by

2) "brokers" who work closely with a fund/investor/bank/whatever. Actually, they heard of one. Well, they know someone who works with one. Well, they have a list of potential lenders/hedge funds/banks/whatever that they would be willing to send a badly written application to on my behalf if I would just pay their very large "front fee" so they can get started...

If we had a legitimate investor (or real group of smaller investors) we would be making a ton of money by now. Legitimate seems to be a major issue...

Grrr....

^ That's too bad. The nearest option for me to do something like this is to install a solar panel on my roof, and continue to chop away at the market on my little desktop. Best of luck to ya!

thanks and back at'cha...

I'm thinking of hooking up all my yahoo group members with propeller beanies, running leads down the back and storing the "wind turbine" electricity in a battery fanny pack, which they will ship to me periodically for uploading onto the electrical grid. Perhaps I'll make a buck or two that way... At least it would be a fashion statement. I can almost hear them clamoring for the beanies now...

Take care,
Bill

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Yeah, I was a little confused too, but there was no way around it, MT4 would refuse to believe that the EA wasn't expired... and I got sick of arguing after a while... ^^;; Anyways, thanks, I downloaded it and I will have a blast blowing up demos

Best of luck bringing your plan to fruition, if I had the kind of capital to help you believe me I would, if only to get even indirect access to Calista Hang in there, I feel like you have a great idea (and one that makes sense to an MBA grad, albeit non-Ivy league, if that makes you feel any better)

Cheers and here's to some ice-cold Heinekens to make the time pass oh so much more refreshingly