MoneyTec Traders Community Forum - View Single Post - "grid trading" How does it work? Does it really work?

11bruce · 05-08-2006, 17:36

Grids work well in theory but the money management causes them to blow out. You need to evaluate them over a along period of time at least 3-6 months before you will know the maximum exposure your account can handle before a margin call WILL occur. Many people have used grids from these forum sites and have lost buckets of cash to ibfx,fxdd and other mt3,mt4 brokers. The main reason I see for there downfall is the notion that profits should be taken between 5 - 20 pips each time. This causes the system to pay to much % of each trade in spread. Also the fact that lossing trades are kept open until market comes back or your account is margin called. Proceed with caution.

05-08-2006, 17:36	#5
11bruce level 1 Join Date: Mar 2005 Posts: 4 Downloads: 0 Uploads: 0 Rep Power: 0	Re: "grid trading" How does it work? Does it really work? Grids work well in theory but the money management causes them to blow out. You need to evaluate them over a along period of time at least 3-6 months before you will know the maximum exposure your account can handle before a margin call WILL occur. Many people have used grids from these forum sites and have lost buckets of cash to ibfx,fxdd and other mt3,mt4 brokers. The main reason I see for there downfall is the notion that profits should be taken between 5 - 20 pips each time. This causes the system to pay to much % of each trade in spread. Also the fact that lossing trades are kept open until market comes back or your account is margin called. Proceed with caution.