THE GRID TRADING STRATEGY

Hello to everyone in this wonderful community today and in this great platform at large. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

Today I am here again amidst you all to conclude the previous teachings regarding the grid trading which I started yesterday. I know it is quite new to many users and traders but a good trader or one who has been trading for a very long time should understand and know what grid trading entails.

So today, I am here amidst you all once again to talk about a related topic which I have titled THE GRID TRADING STRATEGY. The grid trading might seem so easy but in the real aspect it is way more complex and complicated and as such, I will be taking my time to talk about the strategy that are entail in grid trading. So I will urge us all to sit tight and relax while I begin the discussion for the day. I wish you a happy reading!

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1- SETTING THE GRID

The first step before executing the grid trade is to carefully set up your grid entry order trade and this should be set at certain intervals and this grid entry order should be set below and above the current price. The setting of your grid entry order is determined by the kind of trade you have in mind to execute.

If it is a grid buy entry order you want to execute in the market, this should be done after you must have carefully examined the market to see the current price of the said currency before setting up the order. When you set your buy grid trade, as price moves around it, it gets triggered.

Mind you, it is expedient that you set your triggered price a bit above the current price and as price moves at intervals, it triggers and when the price of the said assets gets to the triggered price that has been set, eventually the trade will hit and you begin to make profits in the market as it moves up the triggered price.

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On the other hand, if the grid entry order is a sell order, the trader carefully look at the current price in the market and after carefully reviewing the market, he then set the price below the current price and when the price hits the triggered price at certain intervals, the trader is now considered to be in profit as the price continues to go below the current price value at intervals.

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2 - ORDER EXECUTION

The second strategy is the order execution and this entails executing the order. It occurs in the market as soon as the trader set up the grid and as the current price begins to go in a specific direction, all the order within the grid which has been set by the trader is then triggered and when this happens it means that the trade has hits the triggered price of the trader.

In essence depending on the kind of grid trade entry order that has been set by the trader, if the entry trade is a buy entry trade, as price takes an uptrend movement, the buy order within the grid set by the trader is triggered and this will result to the trader being in profit.

On that same note, when the trade is said to be a sell trade which is always set beneath the current price and as the price of the asset begins to take a downtrend pattern and then moves down to the trigger price, as this happens it will begin to yield more profit for the trader.

ACCUMULATING PROFITS

This is the next strategy of the grid trading. This is the point at which the trader begins to accumulate profit after the trade has been executed. The profits is being accumulated as the the trade triggers in the market.

This happens as the price moves up and down the market and hits the triggered price. Note that the grid trading is not like other trade which you have to make analysis of the market before setting up your price either below or beneath the current price. It is done simultaneously in the market and this is to take advantage of the market volatility.

In short it is only concern with the rise and fall of a particular asset that a trader is willing to trade in the market. So when a trader has set the grid order depending on the kind of trade he has in mind to execute, he then wait for a little while for the grid price to triggered and afterwards he starts to make profits in the market.

This although might only bring forth little amount of profit as the trade is set a little above or below the current price and as such traders are expected to be very vigilant and not to be greedy in the market.

RISK MANAGEMENT

This is the last strategy regarding the grid trading. As simple and easy it looks it has great risk and a trader is expected to have a good risk management before executing a trade in the market in other to avoid losses of funds in the grid trading market.

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It is expedient that the triggered price should not be far away from the current price because anything is like to happen in the market which may cause the trade to go south and as such it is expected to set your grid order a bit above or below the current price in other for the trade to trigger on time to avoid loss of capital.

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CONCLUSION

To conclude the grid strategy just as I have said it is unwise to be greedy in the market especially when it comes to grid trading. Absolute care should be put in place and make sure the triggered price order is not too far from the current price and note that the grid trading only attracts little profit as the triggered price is set a little above or below the current price.

Thank you for having me today and I hope this teaching was beneficial to you all. I look forward to see you all soon.