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Gridtrading

How Do Grid Trading Strategies Work?How Do Grid Trading Strategies Work? Grid trading stands as a distinctive strategy within the trading realm, offering a structured approach to navigating market volatility. By strategically placing buy and sell orders at predefined intervals, this method eschews the need to determine the market direction, instead harnessing the inherent fluctuations of the market. This FXOpen article delves into the intricacies of grid trading, illuminating its mechanics and the nuanced grid strategies traders use. Understanding Grid Trading Grid trading is a strategic approach to forex and other financial markets, where traders place buy and sell orders at predetermined intervals above and below a base price, creating a grid of orders. This method does not require traders to determine market directions but instead relies on market volatility to generate returns. The essence of grid trading lies in its relative simplicity and in leveraging the natural ebb and flow of price movements. At its core, grid trading involves setting up a sequence of orders that are triggered when prices hit certain levels. The strategy is designed to take advantage of normal price volatility within a specific range or trend by entering and exiting trades at predetermined levels. For instance, a trader sets up a trend-following grid on EUR/USD, placing buy orders above the current price at regular intervals and sell orders below. As the trend progresses, orders are activated, and the trader aims to capture returns from these movements. A critical advantage of grid trading is its flexibility. It can be adapted to suit various market conditions, whether the market is trending or moving sideways. In trending markets, the grid can be adjusted to follow the trend, potentially increasing returns as the price moves in a specific direction. In range-bound markets, the grid capitalises on price reversals at each level. However, grid trading also requires careful risk management. The nature of the strategy means that without proper oversight, adverse market movements can lead to significant losses. Setting stop-loss orders for individual trades and monitoring overall exposure are essential practices to mitigate these risks. Grid Trading: An Example Consider a trader who decides to employ a grid trading strategy on the EUR/USD pair, observing that it has been fluctuating within a tight range of 1.1000 to 1.1100. The trader selects 1.1050 as the base price, identifying it as the midpoint of the current trading range. To set up the grid, the trader places buy orders at intervals below the base price, for example, at 1.1040, 1.1030, and 1.1020. Simultaneously, sell orders are placed at intervals above the base price, at 1.1060, 1.1070, and 1.1080. The strategy here is to capitalise on the currency pair's natural price movements within this established range. As the price fluctuates, hitting each buy order triggers a purchase at a lower price, aiming to sell as the price rebounds. Conversely, each sell order executes a sale at a higher price, buying back the short position as the price drops again. A stop loss is typically set beyond the range’s upper and lower bound, while profits may be taken incrementally as the price fluctuates around the midpoint. Properly managed, this approach allows the trader to systematically generate returns in a range-bound market without needing to determine the direction of the next price movement. Grid Trading Strategies Broadly speaking, grid trading strategies come in two flavours: range-based and trend-following. Below, we explore both. To gain an in-depth understanding, consider applying the steps below on real-time charts in FXOpen’s free TickTrader platform. Range-Based Grid Strategy In a range-bound forex or cryptocurrency* market, where prices oscillate between a defined high and low, a basic range-based grid strategy might be quite effective. This approach leverages the market's natural tendency to fluctuate within bounds, allowing traders to capitalise on small, consistent movements rather than large trends. Identifying a trading range is the first step, where the trader marks the highest and lowest prices over a certain period. From this range, the midpoint is determined, serving as a reference for setting up buy and sell limit orders. Typically, traders might choose to place four or five orders on either side of the midpoint, though some may select more. The spacing between orders is calculated by dividing the distance from the midpoint to the range's high or low by the number of orders, adjusting the spacing slightly. Entry Buy orders are placed below the midpoint at intervals determined by the spacing calculation. Sell orders are set above the midpoint, also spaced according to the initial calculation. Stop Loss Stop losses for each order are placed just beyond the range's established high or low to protect against significant market moves outside the expected range. Take Profit According to the theory, traders prefer to take profits as price reaches the opposing order. Trend-Following Grid Strategy In a trend-following grid strategy, the primary goal is to align with the market's direction, leveraging sustained movements to accumulate a position that grows as the trend progresses. This approach requires the trader to first identify the prevailing trend, which can be achieved through market structure analysis or the use of indicators such as moving averages, momentum indicators, or the Average Directional Index (ADX). Upon determining the trend, the current price acts as a base from which buy stop (in an uptrend) or sell stop (in a downtrend) orders are placed at fixed intervals. The intervals may vary depending on the trader’s preference; a popular method involves using the Average True Range (ATR) to set these distances. For example, if using the ATR, a trader might place orders at intervals of 2x the ATR value from the base price, utilising the ATR’s reflection of market volatility to gauge appropriate spacing between orders. Entry Orders may be placed in the direction of the trend at intervals determined by the trader, such as a set number of pips or a multiple of the ATR from the base price, enabling a balanced expansion of the position as the trend continues. Stop Loss Setting a stop loss in a trend-following grid strategy varies; some traders prefer to trail a stop loss beyond the last entry point to protect gains, while others set it just beyond the base price to guard against sudden reversals. Take Profit Profit-taking can be challenging in a trend-following grid; according to the theory, one approach is to close all trades after a predetermined number of orders are reached (e.g. if using four orders, closing the trade when the fifth order is reached), effectively capturing returns before a potential reversal. Another method may be to take profits upon the opening of the next order in the sequence, which limits both potential gains and losses while reallocating capital for future trades. Risk Management in Grid Trading Risk management is a critical aspect of grid trading, where the systematic approach to placing multiple orders can potentially amplify both returns and losses. Given that grid systems compound entries, the disciplined use of stop losses becomes essential to cap potential losses. This is particularly true in volatile markets. When grid trading in cryptocurrencies*, for example, rapid price movements can quickly leave a trader overexposed without careful risk management. Another crucial consideration is the spacing between orders. Properly calibrated spacing can help manage exposure by preventing the accumulation of too many positions too quickly in a market that is moving against the trader's assumptions. Similarly, the sizing of each trade must be carefully considered to not only manage exposure but also ensure that margin requirements are met without overleveraging the account. Diversification across different instruments or markets is also an important part of a grid strategy. By not putting all eggs in one basket, traders can potentially reduce the impact of a significant move in any single market. Many grid trading strategies are automated, allowing for the execution of this strategy at a scale and speed that would be challenging manually. However, using grid trading bots introduces its own complexities, including the need for constant monitoring to ensure that the algorithm behaves as expected in changing market conditions. It also requires a robust understanding of the automated system's parameters to avoid unintended exposure. The Bottom Line Grid trading may offer a unique avenue for traders to exploit market volatility effectively. By understanding and applying the strategies outlined, traders may navigate the forex market with increased confidence. For those looking to put these strategies into practice, opening an FXOpen account provides the ideal platform to explore grid trading's potential, backed by a broker known for its robust support and advanced trading tools. FAQs What Is Grid Trading in Forex? Grid trading in forex is a strategy where a trader places buy and sell orders at predetermined intervals around a base price. It capitalises on the natural market volatility by automatically executing trades without the need to analyse market directions. This approach is designed to generate returns from the fluctuations of financial assets. How Does Grid Trading Work? Grid trading works by setting up a network of buy and sell orders spaced at regular intervals above and below a starting price point. As prices fluctuate, these orders are triggered, potentially allowing traders to take advantage of small price movements. The strategy can be adjusted for different market conditions, aiming to continuously enter and exit trades based on the established grid pattern. What Is Spot Grid Trading? Spot grid trading is a specific application of grid trading strategies in the spot market, where financial instruments are bought and sold for immediate delivery. In forex, it refers to buying and selling currency pairs at their current market price, using a grid strategy to take advantage of spot market volatility. What Is a Grid Trading Strategy? A grid trading strategy is a systematic method of placing a series of orders at incrementally increasing and decreasing prices. This strategy is designed to execute trades automatically as the market moves, aiming to secure returns from these movements without needing to determine the market's direction. How Risky Is Grid Trading? Grid trading can be risky due to its potential to compound losses, especially in highly volatile markets. The strategy requires careful management of stop losses, order spacing, and trade sizing to mitigate exposure. While automation of grid trading can help manage these risks, it also introduces the need for constant monitoring and understanding of the system to prevent significant losses. *At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
HOW-TO: Cyato Grid BotThe grid strategy is one of the most popular and interesting in the world of crypto and forex trading. Simply because it abuses volatility, market fluctuations, and those markets are well known for it. In this guide, I will explain the strategy and showcase a powerful grid trading indicator that can help traders to better understand and implement this strategy. █ The Key to the strategy It involves placing buy and sell orders at predetermined intervals or levels, called "Grid Steps". If a step is crossed to the downside, the strategy will buy. If price crosses a step to the upside, the strategy will sell. The last step to be crossed becomes inactive. When configuring the strategy, the process is pretty simple. The user can choose the number of steps with a higher and lower step price. With just these 3 settings, you can create a strategy. Now, the challenge with grid trading, is to optimize these 3 settings. █ Maximizing its effectiveness The first thing you want to do before even going into the settings is to find a suitable market for it. You want these 3 requirements:  • A ranging/going sideways market  • High volatility  • High liquidity For example, ETH/BTC is one of the most traded pair in grid trading. It has good volume for the strategy, behaves in a range since late 2021, and has decent volatility daily. █ Knowing the risks Very often, the lowest step is used as a stoploss. As with every trading strategy, there are risks and it is important to understand it. With grid trading, we take a bet that price will fluctuate in a range, and abuse that assumption to profit from price action. If price decides to leave the range, there is one scenario that will put us at risk. In the scenario where price breaks to the top, we are fine, this is take profit. However, if price breaks through the bottom (lowest step), we will find ourselves with a lot of buy orders above current price. That means we have unrealised loss. Now two difficult two choices are in our hands: sell at a loss, expecting price to go lower, and stop the strategy to start a new one at lower prices. Or wait until price climbs back up. In this example, we set a stop loss at 0.063 BTC below the lowest step, and price falls down to 0.048 BTC. If we decided to hold, the unrealised loss would grow bigger as price drops. Now that we know what are the risks, let's see how is profit calculated. █ Calculating Grid Profit We will have two types of profit when grid trading. One this called grid profit. Grid profit is generated every time a step is bought and sold at a higher price. The grid step "height" is the spacing between two steps, usually visualised in a % percentage of price. The sum of all the profits generated from the grid steps is the grid profit. The second type of profit is the open profit. This one is really important and should not be forgotten when calculating your strategy PNL. To put it simply, it is the profit or loss that would be realised if you would close all the open orders at current price. The open profit can vary a lot and it is crucial to know its value when you are looking to take profit or stop the strategy. In this example, I chose round numbers to make it easier. I used 2000 usd as initial capital for the strategy, which contains 20 steps. The strategy will therefore split this equally through the steps, so 100 usd per steps. I chose a grid step of 1.1% of price, which is makes around 1% after fees. It will consequently take 20 closed steps to generate 1% grid profit from the initial capital. After running the strategy for 74 days, we have 21 steps closed, which makes a tiny bit more than 1% grid profit in total. However, the open profit from the 12 orders still open is negative because price dropped. If we were to close all open orders and stop the strategy right now, the total profit would be 1.03 - 4.35 = -3.32 % We can see that it would not be a good time to stop the strategy, and shows that grid trading needs time to generate grid profit. That is why even though it is run on low timeframes, it remains a long term strategy. █ Cyato Grid Cyato Grid is a powerful indicator that can help to better understand and implement this strategy. I will now explain the key features and settings of the indicator, provide examples of how to use it in real-world trading scenarios, and offer tips and advice for maximizing its effectiveness. Backtesting As soon as you set the 3 settings - number of steps, lowest and highest price -, you will get results in the Strategy Tester and in the Backtest table in the top right of the chart. Those results will vary based on your strategy initial capital and order size. The order size being the amount to buy on each step, and is usually the same for each step. A good practice is to divide your inital capital by the number of steps to make sure you will never run out of funds to run the strategy. Order Type The strategy can be configured to use market or limit orders, as you prefer. With market order type, the strategy will place market orders at the current price every time a step is crossed. This allows to ensure that every order is filled, however you are subject to buy and sell a bit higher or lower than the exact grid step prices, and you will pay taker fees. With limit order type, the strategy will place limit orders. This allows to ensure that the strategy will buy and sell at the exact step prices and pay maker fees, which are usually less than taker fees. To make it work, the "Start Date" setting comes into place. Key Features  • Price percentage % step   Lets you set a price percentage between steps. The grid is then generated starting from lower or upper, configurable.  • Trailing Up    Automatically creates new steps when price climbs out of range.  • Trailing Stop    When trailing up is activated, the stop loss will dynamically follow the lowest price.  • Take Profit    Secure profits by stopping the strategy once total volume (grid profit and open profit) reaches a configurable percentage %. Automation You can fully automate the strategy through its alerts. Set the alert messages for buy, sell, take profit, stop losses directly in the indicator settings. Use the parameter "alert() function calls only" and you're good to go. It will use only 1 alert slot to run the whole strategy. Since it is not possible to place orders directly in TradingView, you will need a bot-software to do it. You can use any bot that work with TradingView alerts. Now, I offer a bot system for Binance along with the indicator. More info on my website, link below. Sample Use cases Crypto BNB/BTC BNB/ETH LTC/BTC Forex GBP/JPY EUR/JPY NZD/USD Tips and advice 1 — Set up the grid properly: Make sure you have a clear understanding of the asset you're trading and the market conditions that are affecting it. Set your grid levels based on your analysis of the asset's price movements and volatility. 2 — Adjust the grid as necessary: Keep an eye on market conditions and adjust your grid levels as needed. This will help you capture gains and limit losses as the market moves. 3 — Use proper risk management: Make sure you have a clear understanding of your risk tolerance and use appropriate risk management techniques, such as setting stop-loss orders, to limit your potential losses. 4 — Don't overtrade: Grid trading involves placing a large number of orders, so be mindful of transaction costs and don't overtrade. This will help you maximize your profits and reduce the potential for losses. 5 — Consider using automated software: Grid trading can be automated using software, which can save time and reduce the potential for human error. Consider using a reputable software provider and test your strategy thoroughly before using it in live trading. 6 — Keep a trading journal: Keeping a trading journal can help you evaluate your strategy and make improvements over time. Record your trades, including the grid levels and any adjustments you make, and evaluate your performance regularly. 7 — Stay disciplined: Stick to your strategy and avoid making emotional decisions based on short-term market movements. Stay disciplined and focus on the long-term profitability of your grid trading strategy. ═════════════════════════════════════════════════════════════════════════ █ SCRIPT ACCESS Indicator and automation tools access can be purchased on my website. The link is in my signature below.
Education
by cyatophilum
7
EUR/USD Week 14 Analysys/OutlookTime dive into the whirlwind that was Week 14 in the EUR/USD market. Last week was nothing short of intense, with each trading day bringing its own set of surprises and challenges. Despite the rollercoaster ride, the overall price range remained relatively stable compared to the previous week. It's fascinating to see how the market dynamics played out amidst the volatility. When we look at the order book, it's clear that both buyers and sellers were actively engaged. Buyers were eager for lower prices, while sellers seemed content with slightly lower values for profits, compare to initial volume levels. Now, let's talk about resistance levels. Bears had set up some formidable resistance in the order book, but as history has shown, Bulls have a knack for breaking through even the toughest barriers. Looking ahead, while we may not see significant changes in the overall price range, I anticipate some fluctuations within that range. It's all part of the ebb and flow of the market. On a longer-term basis, the market has shown remarkable stability since January 15th. It's a testament to the underlying trends that have been driving the market. So, what does this mean for traders? Well, there's no one-size-fits-all answer, but strategies like grid trading and trend-following could prove fruitful. Of course, proper risk management and strategy testing are crucial. So, while last week may have been exciting, the name of the game is slow and steady profits. It's all about consistency in the trading world.
by RobertD7723
Educational: Grid Trading, What is it? How it works?Grid trading is often marketed as a way to win every trade. People usually get away with this type of marketing of the trading style due to the fact that grid trading does not care for market execution in the sense of market direction because you will close profitable trades if the market goes up or down. But it's not as simple as that. What is Grid trading? Grid trading is a type of trading strategy that makes use of market price variations by placing buy and sell orders at regular intervals around a base price. The foreign exchange market is where grid trading is most frequently employed, but it can also be used on other markets, like those for futures contracts. How to execute trades on a grid The image above explains exactly how positions that run in the upper direction are executed. Let's break down the process: (1) At the start of your grid trading system, you execute a buy and a sell position with the same lot size. (2) You will only set a take profit and a buy limit/sell limit, but no stop loss. (3) Assuming the price runs in the direction of the buy and you have a 10-pip stop loss, once the price hits your 10-pip stop loss, you will also execute a sell position via the sell limit. This sell position will have a 10-pip take profit in the opposite direction. See demonstration below: There is no restriction on the size of the grid. It does not have to be 10 pips apart. The distance of the grid is explained further in the publication. Here is a video using a trading simulator to show you how these positions would be executed : So, as you can see, with this style of trading, you can potentially make money whether the price goes up or down. However, it can be quite challenging to execute and maintain a large number of trades. Therefore, individuals typically employ automated systems or use trading software to manage and monitor these trades. Trending Market Grid trading can be used to profit from both trending and ranging markets. In a trending market, grid trading involves placing buy orders above the base price and sell orders below the base price. This way, the trader can capitalize on the price movement in a sustained direction. For example, if the base price of Bitcoin futures is $60,000, the trader can place buy orders every $1,000 above the base price. This is also sometimes wrong referred to as dollar cost averaging or compounding your trade which are very different investment strategies. Grid trading's key benefit is that it can be readily automated using trading bots and does not require a lot of forecasting of market direction. Grid trading's main disadvantage is that, if the market goes against the grid and the trader does not apply appropriate risk management strategies like stop-loss limits or position sizing, it may result in significant losses. Grid Size Choosing a grid spacing is one of the most important aspects of grid trading. This depends on a number of elements, including: - The volatility of the market: The more volatile the market is, the wider the grids should be to avoid frequent executions and commissions. - The personal preference of the trader: The trader should choose a grid size that suits their trading style and risk tolerance. Technical indicators like moving averages or Bollinger bands are sometimes used to calculate the spacing between the grids. These indicators can be used to determine the market's volatility and average price over a specific time frame. You can also use basic price action to determine what range the market is likely to tstay within and then calculate the grid in-between Ranging or Trending: Identifying whether the market is trending or range is another important aspect of grid trading. This can be used to determine whether to employ grids that move with the trend or against it. There are a number of approaches to determine if the market is trending or fluctuating, including: - Using trend lines or channels: A trend line or channel is a line that connects higher highs or lower lows in a trending market. A break of a trend line or channel can indicate a change in trend or a range-bound market. - Using trend indicators such as ADX or MACD: The average directional index (ADX) measures the strength of a trend on a scale from 0 to 100. A high ADX value (above 25) indicates a strong trend while a low ADX value (below 20) indicates a weak trend or a range-bound market. The moving average convergence divergence (MACD) measures the difference between two moving averages of different lengths. A positive MACD value indicates an uptrend while a negative MACD value indicates a downtrend. A crossover of MACD lines or zero line can indicate a change in trend or a range-bound market. Link to a publication on MACD : - Using range indicators such as RSI or Stochastic: The relative strength index (RSI) measures how overbought or oversold a market is on a scale from 0 to 100. A high RSI value (above 70) indicates an overbought market while a low RSI value (below 30) indicates an oversold market. A reversal of RSI from extreme levels can indicate a change in trend or a range-bound market. Link to related publication:
COINBASE:ETHUSDEducation
by ChristopherDownie
2
Is Dash the old gem with a new trend?Dash is an old cryptocurrency that belongs to the gem generation and recently provided a hardfork on June 17. The coin's fall in value is worth nothing, which dropped from $74.4 to $25, representing a significant 66% decrease. Typically, high drops within this range often act as a pause before the next wave of potential coin gains. I have identified certain areas in the price trend that could indicate potential liquidity points. These areas are important to keep an eye on as they may influence future price movement. It would be beneficial to closely monitor the chart and make use of a bot to make fast deals. More than that, look at the top wallets of DASH, they are still accumulating coins. In my view, I advise you to always keep in mind the three essential factors: Implement a stop-loss strategy for your trades to manage risk effectively. Pay attention to the chart structure, taking note of both Higher highs and lower lows. Always keep in mind trends. Stay informed about the news, particularly regarding Bitcoin's behavior, as it can significantly impact the overall market. Please show your support and subscribe to my channel. I have interesting content this Friday, where I will write about the top AI coins to trade with bots.
BINANCE:DASHUSDLong
by Ingwina
USD/CHF perfectly aligned for sustainable grid trading USD/CHF has had a nice bullish short term ride and I believe it will, in general, continue until it reaches a firm resistance zone of $1.02ish, first established in November, 2014. This zone has been tested several times, so its a good selling area. Overall support is roughly at $0.87ish and has been holding and tested since May, 2014. The really is an exceptional set up that looks like it will continue for a while. When using a traditional grid trading technique, settng an upper boundary of $1.03 and a lower boundary of $0.86, yielding a spread of 1700 pips, gives a very nice grid structure with 17 pips between each level, with a maximum of 100 levels. Using automated methods would provide a very consistent flow of profits. The fact that the price action is so close to the lower boundary means profitability will occur in a shorter time frame as saturation will occur quicker. For manual trading, the boundaries could easily be adjusted to a level where a few minutes a day could be used to maintain the grid while still being quite profitable, since this is based upon the daily chart. Another technique would be to use a floating grid that encompases a stoploss such that the grid is more dymanic to the market, while providing consistency in both budget and profitability (see signature for more details). A floating grid will provide a better level of analysis as well, since it manages less positions and has a stronger and more beneficial rule set. Overall, regardless of trading technique, the USD/CHF market is poised to be profitable for a while, with a significant histocical record of being reliable.
Long
by RobertD7723
Analysis Doge/USDT on 2Days chartCurrently price is consolidating in support (pink block) right now. Ideally I would link to see price close above pink support first. RSI is slowly moving towards 42, which means it is still in a range. Which could work for a grid bot. Not so good for trend traders. 'll be waiting for confirmation from the Supertrend Ninja indicator. And a close above pink support. Ideally I would like see some more green blocks on the Heikin Ashi indicator below as well. Before entering any trades. I have also drawn two grey resistance areas for the people interested. In the chart I am using the Supertrend Ninja indicator, which is a trend-following indicator (Green and red vertical line with arrows). When the background of the candlestick closes green with an upwards pointing pink arrow. It indicates a possible bullish (up)trend. The Supertrend Ninja indicator gave only 3 bullish signals for the 2 day chart in 2021. And 4 bullish signals in 2020. Including two monstertrends (displayed with Purple dollar signs) triggered bij Elon Musks tweets. And a smaller third trend on 5th of July 2020 (pump of 86%). This indicator showed bullishness well before the tweets of Elon Musk. Which helped me a lot. Thank you for reading. Namasté Disclaimer: Ideas are for entertainment purposes only. Not financial advice. Your own due diligence is highly advised before entering trades. Past performance is no guarantee of future returns.
by Kch28
Analyzing BTC trends using muli-plane grid techniqueTIP: Did you know that you can watch the price, volume and orderbooks (bids and asks) fluctuate on a bag of 10 different stable coins on our stable coin index @ vcdepth.io - This really helps to see when money is flowing in and out of the sidelines. This chart depicts how I see trends and its applicable to almost any chart. I see an intersecting graph paper like grid with lines on different planes. Most of those lines I just copy and paste and move up or down. Here there are a total of 3 planes that provide the bulk of support and resistance for all the price action in this chart. Arguably there could be additional lighter lines on each plane in between some of the larger gaps. I tried to color each plane differently and emphasize the perceived strength of each line on its plane. Notice when price action occurs at the intersection of multiple planes, support and Resistance are usually stronger with combined support from the multiple trendlines, the more trend lines in support, the stronger the support. Furthermore I add Orange horizontal lines that depict horizontal historic support and resistance. The sharp descending channel we just broke out of appears to be a freefall and is now is trying to snap back to the grid. From here there are 4 likely paths, -The continuation of the sharp descending trendline, seemed the least likely, we have halted descent and broke the channel and have at least 3 planes of support with one of the other 3 paths are more probable. That said, we just broke all the supports while I was typing this, in support of this arrow. This path could see a low around $7800 as early as a week from now. This would most likely be a great entry point and the lowest we will see BTC for a long time. -Continue along the bottom of what may become a large descending channel with an absolute low of $8000 possible mid-March. Right now this is definitely possible but it feels like one of the others may be more likely based on global order book support @ vcdepth.io -There has been a decent amount of support and resistance sitting almost perfectly $1000 above the long term ascending trendline. This could hold and in fact could be bottom of a long term ascending channel with the top of channel sitting around $10k right now and also in a lighter red. If we are stuck in this channel we end up in the same place as the next option. -There is a chance we take this little sub ascending channel to $9450 by mid-March where there is a large chance we will confirm this as a descending channel and likely follow it all the way down to the 5 year trend line before making its next big run to hopefully surpassing February highs with a low around $8400 mid-april. *Note there is a chance if we drop to $8200 that we could form a nasty head and shoulders. Also watch all these lines, whichever direction we go from here, it will likely bounce between a set of these lines which can help identify entry and exit points. This is not investment advice, do your own research!
COINBASE:BTCUSDEducation
by EncryptShawn
Buy AUDCHF Long term trade.I plan to split position in 3 entry ( with small lot ) #1 Buy now at mkp buy limit #2 0.66457 #3 0.65758 S/L red line around 200 pips T/P open This is Long term trade. ( swap positive ) This Idea I will not update .I use for recording only and will check again after loss / gain 120 pips. PS: If you see in monthly chart will see Lowest value around red line. so It is interesting to use gird system to eat cashflow pips every 40 pips per zone ( ADR(10) around 45 pips) so I have another account to set another strategy with this. I use grid system and split in zone around 40 pips in buy entry only without stoploss and plan money to support hugh drawndown. if not pls don't trade , This is only idea trade in my strategy with preparation money for support drawndown. if trade and don't want to wait pls set Stoploss with yr risk.
Long
by theoris
1
CHART ART Excuse Me... My Nose Is Consolidating! (Like & Share)EXCUSE ME... MY NOSE IS CONSOLIDATING! As a Grid Trader I'm constantly seeking consolidating price areas, sideways channels, and slowly trending prices where every ZIG and every ZAG is potential profit in my grids. Yep, I have a "nose" for Grid Trading and I love a consolidating market. I hope you enjoy my Chart Art. Just horsing around! OTHER CHART ART WORKS YOU MIGHT LIKE: As always, I appreciate your support. Please LIKE and share with others. Happy To Teach You Grid Trading! Dan Hollings Master Crypto Grid Trader Please Explore My Indicators, Scripts, Grids, Tutorials and Educational Ideas. @ DanHollings on Tradingview.
by DanHollings
Straight From The Horse's Mouth... BTC Is Off To The Races!Here I am, sitting back with a cool bubbly, not a worry in the world. My BTC trade is 3.2% in profit already, yet the current price is near where I started... How could that be? Maybe BTC will go up, maybe it won't, it's not me worry. I'm likely to make 6%, 7%, 8% or more on this trade regardless, but even if I'm off a bit... I'm 98% sure I'll walk away with a profit. WHAT'S MY SECRET? I have a horse story you're going to love (read on)... How do I do this? Meet Ol' Mr. Gridley... Actually what I'm doing is pretty easy. But I get a little help... I just jump on Ol' Mr. Gridley here and I'm off to the races. Mr. Gridley is likely NOT the type horse you're familiar with, he ZIGS he ZAGS... he never goes in a straight line. Sure, I pick the race track he runs on (and I have some handy indicators that help me do this) and I point him in the general direction, but once Mr. Gridley heads out of the gate, I just let him do his thing. Now here's where this horse story gets interesting. BTC , ETH, LTC and quite frankly all the crypto coins out there... well guess what? They pay Mr. Gridley all along the way. He zigs down and buys a little, he zigs up and sells it right back. You know... BUY LOW, SELL HIGH . He's a pretty clever horse! It really adds up... in fact me, my friends and my followers usually make more money riding Ol' Mr. Gridley than betting the bank on a moon shot and sweating out the charts. In fact, Ol' Mr. Gridley has been doing this so long, most the time I don't even ride him. That's right! I give him his favorite oats, maybe an apple , I point him in the general direction and he goes it alone. Mr. Gridley loves this... I mean, totin' me around all day and night ain't no joy ride! So I let Mr. Gridley run solo and he brings back the money - 100% automated - simple as that. How long, how much? Sometimes in a few hours, sometimes in a few days. Just last week he came back after 3 weeks with a 29.44% return! On another occasion, he brought back 9.66% in 14 days -AND- 9.66% in 14 days -AND- 26.98% in 7 days 14 hours -AND- 11.08% in 13 days 8 hours -AND- 18.3% in 3 days. Yada, yada... I'm happy to show you all my screenshots and proof. Just ask! Now you're thinking... How many people can ride Ol' Mr. Gridley? What if I want to race him on multiple crypto tracks at the same time. How might we do that? Here's the good news, there's a whole herd of Gridley's out there: Pappa Gridley's, Momma Gridley's, Baby Gridley's, they're everywhere (if you know what you're looking for) . Yes some are better than others, they don't all make money. Bummer huh? But you can learn how to pick a winner, it's easy... it all comes with a little training and the right tools. It's about knowing WHAT to look for, what to feed them, and how YOU can get "GRID SMART" yourself. I'm here to teach you the ropes. YES, you can do this! It's easy, safe, and fun. Plus you can HAVE A LIFE beyond watching charts. My name is Dan Hollings, I'm a Master Grid Trader. I can teach you what I do and before long (maybe even tomorrow), you could have Ol' Mister Gridley working for you. Follow me, like this and share with others. Mr. Gridley will be very very happy! OTHER CHART ART YOU MIGHT LIKE: As always, I appreciate your support. Please LIKE and share with others. A Horse Is A Horse, Of Course Of Course! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
Education
by DanHollings
HOW TO GRID TRADE: The Good, The Bad and The Ugly (Tutorial #5)HOW TO GRID TRADE: The Good, The Bad and The Ugly (Tutorial #5) DID YOU KNOW? The cryptocurrencies you’re holding right now could be generating passive income. Even if you have small holdings or limited capital THIS can become very profitable with a little known strategy called GRID TRADING. EXAMPLE: 11-DAY GRID TRADE EARNS 19.27% PROFIT EASY TO LEARN, LOW RISK & HIGH RETURNS? WHAT'S THE CATCH? If you have not read my previous tutorials on grid trading , I’ll summarize the concept quickly. Grid trading is a type of trading, typically managed by a BOT which sounds a lot more complicated than it is. In a nutshell, you select a range, you divide your range into equally spaced buy/sell grids (like trip wires, sorta) . And as price zigzags up and down, your “trip wires” trigger buys and sells - catching profits for you incrementally all along the way! If you are able to start your grid as the market ranges sideways (which is 70% of the time) or when it is in a gradual upward ranging trend (15% of the time) then you are going to make money most of the time. That leaves about 15% of the time when the market is ranging downwards (and even then, many times grid trading can still produce a profit) . Grid trading requires far less skill and less management than most other types of trading -PLUS- it has far less risk. Not to mention, most grid traders make better returns on their money with grid trading than they do with any other trading strategy. Can you lose money grid trading? YES, but with a little knowledge, losing money is hard! OK IT'S EASY PEASY, BUT HOW DO I DO THIS? You'll need a gird bot automation platform to manage this, but once you've got that... there are only a few parameters you must setup to get started with your grid bot trades. And if you start with a small investment, the learning process is rather fun. Once you get the hang of it, you can increase your investment. The sky is the limit. 1) GET YOUR GRID TRADING BOT (recommendations below) 2) PICK THE CRYPTOCURRENCY PAIR which you plan to trade. 3) SELECT YOUR RANGE. It's called your “trading channel” - and while this can vary depending on the crypto asset you select, it can also vary based on your trend bias and available capital. Just as a thumbnail guide, you might trade a top 10 cryptocurrency pair within a 4% to 8% trading channel, whereas a low cap coin pair might merit a 1% to 50%+ trading channel. 4) DETERMINE A GRID SPACING or GRID COUNT which basically divides your range into a series of buy and sell grid lines. As the price of an asset moves up or down within your range, the bot will execute trades. Each time the price moves up over a grid line the bot will execute a sell order. Each time it moves down over a grid line it executes a buy order. As long as the price stays within the upper and lower price limits that you have pre-set, you will profit from the zigzag of the market. 5) A STOP LOSS is optional and may not be needed at all, but it is a parameter you must think about and set, if you feel you need it. If you are trading a coin that you don’t mind holding, a stoploss is not needed. Advanced strategies can reduce almost all possibility of loss! NOTE: Trying to grid trading manually is near impossible. It is highly recommended you use a trading bot to carry out your grid trading strategy. NO BOTS ABOUT IT... Grid trading bots automate the process and maximize your potential profits. Your bot will automatically place buy and sell orders at pre-set price points you map out upfront. As you go along, your bot will replace grid line open orders as each previous grid level (line) is executed. You simply need to set your upper and lower price limits (your range) for your trading channel, decide how many grids you want, and how much of the asset you’ll invest in. Once your parameters are entered, your bot can be started and you can sit back and watch profits add up. For example, if you chose to trade BTC/USD, then you'll start by buying BTC and you'll simultaneously place limit sell orders along your grid. This is easy because your bot will automate the entire strategy. You can of course get very good at this type trading and make an impressive income however, at the most basic level, all you need to know to start Grid Trading today, is what you’ve just read, perhaps a few more tips from my other grid trading tutorials and if you're smart, you'll try grid trading indicators. Additional resources are found below. HOW DO I LEARN MORE? 1) Review my related IDEAS and TUTORIALS (linked below) 2) Explore GRID INDICATORS (linked Below) PLEASE HIT THE LIKE BUTTON (and follow me... just look below the chart at top... yes, up there where "Kilroy" is watching!) As always, I appreciate your support. Please share with others. ENJOY! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
OEducation
by DanHollings
7
HOW-TO GRID TRADE: How-to Find A Profitable Grid (Tutorial #4)HOW-TO GRID TRADE: How-to Find A Profitable Grid Using The "Grid Range Finder" Indicator. WHAT TO LOOK FOR... The best GRIDS are placed in sideways channels, consolidation areas, ranging markets and slowly upward trend areas. In seeking a place to start your next grid, you should seek out support areas, preferably during a sideways or upwardly trending time period. It's near impossible to predict how long this type market condition might last, but the ideal grid will run for 2 days+. Some grids can run for months! Did you miss my previous GRID TRADE tutorials? ( Start from the beginning ) ESTABLISH A RANGE Your next task is to determine a range depth for your grid (I suggest 4% to 8% as measured on the chart - though you may find other measurements better depending on the crypto you're trading, the average market volatility and your available capital) . This is why, when using the "GRID RANGE FINDER INDICATOR" you'll appreciate the "Auto-Fibonacci Lines" added to help in projecting how high or deep your range might go. In most cases, your range should span between either support and resistance or a nearby Fibonacci line. Once you've discovered your range "sweet spot" and a good starting point, "box out" a projected grid range that has logical support, resistance and fib parameters with a span (bottom to top) that does not spread your capital too thin nor expose you to too excessive risk. GRID YOUR RANGE In Tradingview, you can easy create a range box using the "Date and Price Range Drawing Tool" or the "Rectangle Drawing Tool." If you want to create actual grids in your range box, you can use the "Gann Box Drawing Tool" and play around with the settings if you are hard core. At the end of the day, this is only to give you a rough idea anyways. Your actual grid range area is automatically create in your Crypto Grid Trading Bot within minutes after setting up a few parameters (simple, simple) . So don't over do the time invested in drawing on your TV chart, keep it quick and simple. Find your range, put the parameters in your Bot and start making money! HELPFUL TOOLS THE GRID RANGE FINDER INDICATOR is ideal for traders pursuing this type GRID TRADING strategy. Yes, it's true that the trading process itself is typically automated, however the first and most important step for you, is to find a sideways, consolidating, ranging or slowly upward trending market. Review the other GRID TRADING tutorials I've published so that you can master this fascinating (and profitable) trading style. It's not that hard and it's well worth the effort. THE GRID RANGE FINDER INDICATOR will assist you in scouting-out market opportunities where a grid opportunity may be waiting. This indicator provides support and resistance lines for both long and short term price action, plus uniquely incorporates red and green COLORED trend tendencies in both the support and resistance lines, as well as in "Trend Dots" at the bottom of chart. TIPS FOR HOW TO USE THIS INDICATOR TO HELP FIND OPTIMAL GRID TRADING OPPORTUNITIES Use this indicator in combination with other indicators to fully maximize your results. First zoom out and determine the overall structure and phase the market is in (long term) . Remember, GRIDS perform best in sideways or slow upward ranging trends. Look for this. THERE ARE NUMEROUS WAYS TO USE THIS INDICATOR BELOW IS ONE WAY, TO GET YOU STARTED: The STEP NUMBERS below are illustrated on the charts above. 1. Watch for a major support point. 2. Followed by a higher minor support point. 3. Start grid during GREEN trend indication (as seen on indicator trend dots or trend support line) • If using Heikin Ashi candles (recommended) start grid on a GREEN candle 4. Map out your grid range of 4% to 8% using Support & Resistance lines and/or Auto-Fibonacci lines on chart. This is not a "SIGNAL" type indicator, it is a valuable tool (or aid) designed to assist you in conjunction with other indicators and market knowledge. Some grid traders use ONLY this one indicator, but you should evaluate the others I've created which may help you refine your grid start parameters and opportunities. For additional help there are details below. PLEASE HIT THE LIKE BUTTON (and follow me... lots of great stuff in the works!) As always, I appreciate your support. Please share with others. ENJOY! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
KRAKEN:BTCUSDEducation
by DanHollings
4
HOW-TO GRID TRADE: Show Me The Money (Tutorial #3)HOW-TO GRID TRADE: Show Me The Money (Tutorial #3). When I started this Grid Strategy Tutorial Series , I assumed readers would understand the profit potential straight away. I was wrong! Perhaps, because as I told my personal story and evolution into grid trading, I mentioned that I used grid trading for my "side money" (money I was not actively trading with other strategies). Yes, that's true. Initially, I just wanted an ROI on this otherwise dormant extra capital that was sitting at an exchange earning nothing. NOTE: If chart illustration above overlaps or is unreadable, there is a screenshot below. MY EPIPHANY It was when my passive "Grid Trading Side Project" started earning a better ROI than my hands-on active trading that I had my epiphany! No way was I going to give up on the other styles of trading I enjoyed, but when it comes to making money consistently and with far less risk... hands-down, it was grid trading I decided to master. A TUTORIAL SEGWAY I decided I'd throw some backtest results out so you could get a taste of what I'm talking about. Of course, the backtests posted here are in NO WAY predictive of what the market might deliver at your doorstep tomorrow, but I think you get the point. Many hundreds of real people have also shared there active results with me, so there is ample validation about the viability of this strategy. My personal results and those of others I coach are impressive, to say the least. However, we've lost money too, IT'S CRYPTO TRADING for crying out-loud. But like anything, you keep at it, you learn from others, you use indicators, you get better, you win some, you lose some, you master it and then... the winning results will exceed your losses. It doesn't take long at all. And YES, there's money in them there grids! MORE RESULTS... HOW TO I SEE MY POTENTIAL PROFIT? Want more current results? Want to test your favorite coins? DO IT NOW... You may test any cryptocurrency at any of your favorite exchanges and get instant backtest results by visiting a grid bot or automation platform. Backtests are simple, fast and impressive. THIS IS THE THIRD IN A SERIES OF GRID STRATEGY EDUCATIONAL TUTORIALS I hope this tutorial series helps increase your bottomline! HOW DO I LEARN MORE? 1) Review my related IDEAS and TUTORIALS (linked below) 2) Explore my GRID INDICATORS (linked Below) HOW DO I AUTOMATE MY GRID STRATEGY? Additional help and recommendations are at the bottom of this tutorial. PLEASE HIT THE LIKE BUTTON (and follow me... lots of great stuff in the works!) As always, I appreciate your support. Please share with others. ENJOY! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
COINBASE:ETHUSDEducation
by DanHollings
3
HOW-TO GRID TRADE: How Grid Automation Works (Tutorial #2)HOW-TO GRID TRADE (Tutorial #2): How a Crypto Trading Bot Automates Your Trades +PLUS+ Quick Set-Up Tips OK - TUTORIAL #2 - LET'S UNDERSTAND WHAT WE'RE DOING Automation via a trading bot will help you execute your grid trading strategy. (The bot I recommend is linked below and connects to your choice of 25+ various exchanges. My instructions are specifically for "my recommended grid bot" though the concepts should work anywhere.) CHART NOTE: If chart above does not display illustrations properly, please expand window or adjust scaling so you have THREE clear and separate examples. Or, scroll down for a screenshot image of these illustrations. Did you miss Tutorial #1? ( Go Here ) SET-UP IN MINUTES Your grid bot can be set-up with your range, grid spacing and capital investment amount within minutes. Your grid trading bot will initiate a start-up BUY, layout your future orders in a grid and continue placing and filling orders as price fluctuates, so you can benefit from any sideways and ranging market. You can grab a coffee, a beer or some spring water, sit back and watch (or better yet, spend time with your family!) In the meanwhile, cha-ching, cha-ching… one zig, one zag at a time, your odds of making money are good. Of course this assumes you’ve done your homework, set things up properly and picked an optimal time. Your only risk is a sudden price plummet (and yes this happens from time to time) but with a stoploss or counter strategy in place, you’re pretty much in hands-free mode and can check your progress once or twice a day. Next, let's explore in details of how the Crypto Grid Trading Bot actually works. In our random example, I'll use BTC/USD pair and the following bot settings: ILLUSTRATION SETTINGS: Price range: $16,000 - $24000 Quantity of grids: 9 Amount per grid: 1 BTC NOTE: Please focus on the concept, not the random range or investment levels in this illustration. This example is not meant to be a real signal or set-up! Just grasp the concept. 1. GRID BOT CREATED Once your grid bot is created, it will distribute buy and sell orders based on your investment settings, range and equal grid spacing (or grid profit targets) . The BUY orders will be placed below the current market price, while the SELL orders will be placed above the current market price. If needed, bot will automatically buy or sell currency to create grid. You will be prompted to confirm every step in the process. It’s fast, easy and fun. Remember, in this example we are only placing LONG buy orders and selling when price moves up one grid (there is NO SHORTING involved). Also remember, you can NOT edit (change settings) on a running grid bot. But you can stop your bot thus opening up the option to create a new one. STOPPING YOUR GRID BOT If for any reason you want to stop your bot (perhaps you messed-up, perhaps you change plans, perhaps the market starts looking negative, perhaps you want to take your profits, perhaps you want to move grid to a new range)... you can cancel your bot at anytime. I’ll cover this in greater detail in a later session of this tutorial series, but for now just be aware that upon bot cancellation - when you stop your bot - you may have open positions remaining that must be dealt with manually on your exchange or trading platform. CANCELLATION RULE: Every time you stop a bot, check your exchange for open positions and either sell, set limit order(s) or perhaps hold the crypto your bot has bought. The bot will automatically remove standing buy and and sell orders (you can double check your exchange to confirm this if you like). 2. PRICE MOVES UP You’ve started (in our example) at $20,000. When the price moves up to $21000 the first sell order is executed. The bot will place a new buy order one grid below at $20,000. 3. PRICE MOVES DOWN When the price moves down to $19,000 your bot will execute BUY orders at both grid lines ($20,000 followed by $19,000) . During that price drop , your bot will place new SELL orders at $21,000 and $20,000) after each executed buy order. And so it goes… your bot buys, your bot sells and grid lines are replaced with new open orders as the next grid line (up or down) is hit. Simple as that. 4. YOUR RESULTS This trading method will generate profit as the market ranges up and down. It works as long as the market movement stays in your predefined range. The “recommended grid bot” (see footer below) will automate this strategy for you and provide accurate reporting on your profit results. 12 QUICK TIPS FOR STARTING In future sessions of this tutorial series, I’ll cover important areas such as: how to find sideways markets, slowly trending ranges, and optimal grid bot starting points. I’ll even cover indicators that can help you with your grid trading strategy -AND- our Discord community specifically dedicated to future “Grid Masters." For now, please follow these basic steps: 1) Get your grid bot account. 2) Connect your bot to your preferred exchange. 3) Start with a cryptocurrency you trust (BTC or ETH or a top 10 coin) . Something you’d be ok holding (HODL) if worse came to worse. 4) Wait for a market where you expect or anticipate sideways or slowly upward ranging price action. 5) Keep your total grid range (lowest grid to highest grid) within 4% to 8%. 6) Select a grid count that renders your grid spacing (distance between each grid line) to a space comparable to typical zigzags you see in recent price action. Typically a .5% to .6% space between gridlines (as measured on your Tradingview chart) is a good place to start. 7) After your settings are enter in the bot, do click the backtest button. Double check setting, make tweaks, backtest again until you are happy. 8) Invest MINIMALLY on your first few bots (say $100 or something you can afford to lose) . Think of your first grid bot as a “learning experience.” 9) Set a stoploss under your grid (there is a setting within the bot for this) . If you don’t mind holding the coin if prices temporarily drop , then you can forego a stoploss. 10) Don’t dream of riches, instead anticipate all goes well and you get a rather healthy ROI (better than a bank and perhaps better than your trading results/ROI using other non-grid strategies). 11) If your first bot does not go well (worry not, remember the first time you tried to ride a bicycle?) . Review what happened and try again. 3%, 5%, 8% gains might be just around the corner. 12) Give your bot time to “do its magic” (perhaps 3 days, a week or longer) ... as long as prices are within or very near your range, you can leave your grid up and running. Why not? You’re making money! LIKE THIS (Click LIKE Under Chart) SHARE WITH FRIENDS - THANK YOU! HOW DO I LEARN MORE? 1) Review my related IDEAS and TUTORIALS (linked below) 2) Explore my GRID INDICATORS (linked Below) As always, I appreciate your support. Please share with others. ENJOY! Dan Hollings Master Crypto Grid Trader Please Explore My Other Indicators, Scripts, Grids and Educational Ideas. @ DanHollings on Tradingview.
KRAKEN:BTCUSDEducation
by DanHollings
3