Hi,

Here's a system I've been playing with and it seems to be working for me during market periods where martingale hedge grid systems arent. I've dubbed it Hedgehog.

I'm under no illusions that the idea is original, so if there are existing EA's to automate such a concept, please just point me in the right direction.

The basic notion is like this:

Lot sizes and grid sizes and TP, SL's must be user adjustable.

One example below.

Take a ranging commodity likely about to break out into a trend using a 15 pip grid trading system. e.g. EURUSD falling out of bed with its head and shoulder pattern.
Then
Place a 0.5 lot market buy and a 0.5 lot market sell order simultaneously.
Place 0.5 lot buy stop 15 pips above and 0.5 lot sell stop 15 pips below the initial entry.
Place another 0.5 lot buy stop 30 pips above and 0.5 lot sell stop 30 pips below the initial entry.
Place another 0.5 lot buy stop 45 pips above and 0.5 lot sell stop 45 pips below the initial entry.
Continue adding on 0.5 lot positions every 15 pips in the direction of the trend.

Set a 2x grid size initial stop loss (i.e. 30 pips) on every position,

Adjust initial stops to (-15 pips) as soon as one is 15 stops in profit

Adjust all stops to breakeven as soon as one is 30 stops in profit.

Now run with the trend as long as it lasts.

Close all positions and delete all pending orders when the last opened position hits its -30 stop loss or maybe the 2nd last opened position closes out at breakeven (and the last has already hit its SL) to give market a little more breathing room.

To give you an idea of where I'm going with this. I'm looking at it from a grid trading perspective as a "scaling in" to the market trend concept. My usual way has been taking a certain lot size and entering the market only to get stopped out if I'm wrong. This way it can still happen but because my initial entry posn is smaller, the potential losses are less and the gains pretty good (but obviously not as good as if I'd opened the full lot size initially but then again the initial risk is less) if the trend continues and even if it only trends for a bit and then reverses then I have my profits locked into all the open positions except the last opened one which will end up getting stopped out if the market reverses more than 2x my grid size.

Unoriginal / harebrained / feasible?

Comments please ....

Thanks

Cheers

Attached Images

eu-gridtrend.gif (14.1 KB, 151 views)