There are a number of steps involved in creating a grid:
Selecting an interval like 10, 20 or 50 pips
Choose the starting price for the grid
Identify whether the grid will be with the trend or against the trend
Consider a trader selecting a starting point of 1.5550 and an interval of 10 pip.
They should place buy orders at 1.5560, 1.5570, 1.5580, 1.5590 and 1.5600.
They should also place sell orders at 1.5540, 1.5530, 1.5520, 1.5510 and 1.5500.
This works for a with-the-trend grid.
For using an against-the-trend grid, they should place buy orders at 1.5540, 1.5530, 1.5520, 1.5510 and 1.5500.
Sell orders should be placed at 1.5560, 1.5570, 1.5580, 1.5590 and 1.5600.
This strategy would work as both the buy and sell orders are triggered but a stop loss is required when the price moves in only one direction.
Best Currency Pairs For Scalping
Grid scalping is a simple trading technique that requires no complicated analysis.
A correctly constructed grid would close profitable trades across multiple price levels and can run for months or years without supervision.
It can produce predictable, steady gains from the price movements.
Grid scalping is suitable for any currency pair and requires minimal changes for working.
Among all the available pairs, you should select only those which best suit the grid placement and prefer those that move closer to the outer edge of the historical range.
If you want to place grids on multiple forex pairs that correlate at the same time, you should calculate the maximum potential loss for the grids and ensure you have enough capital to handle the worst-case scenario.
It is also advisable to prefer more volatile instruments with lower costs of trading.
Trading forex on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Losses can exceed deposits.
Past performance is not indicative of future results. The performance quoted maybe before charges which will have the effect of reducing illustrated performance.
All website content is published for educational informational purposes only.
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