Modified grid to reduce risk?

[tho401]

What im trying to do is very specific, i would appreciate any help!

I will give a example of what im trying to do.

Lets say you are in a buy, a normal grid would add more buys lets say every 12x pips.

What i want to do is add sells on every 12x pip grid Level and close those sells every 12x pips, then add new sells at the next 12x pip buy Level.

I know those strategys are generally not safe, but i think adding sells to take some profits will overall keep equity from falling fast, it should slow it down a Bit.

Here a example of how it would look like:

This is how i did my normal grid so far.

By using Check trade count, then pips away from Open price and and add volume.

Im stuck with getting the opposite trades into the grid and closing them 12x pips away and opening a new opposite grid trade.

This is where im stuck

i would appreciate help

[roar]

@tho401 you need to make some checks, is there any buy trade, is there any sell trade, where are their open prices....

I would make an example, but this just looks bad and I wont go out of my way to promote bad strategies. You cant make grid more profitable by doing the opposite of grid. You just pay double the trading costs.

Also, you are opening and closing trades at the same instant, further adding to your costs. If you want to hedge some particularly volatile periods, just open a single sell trade the size of total buy position to get net zero exposure, and close sell when you feel the volatile period is over.

But again, the point of grid strategies are to make use of volatility. Profit is a reward from taking a risk. By canceling the buy trade with sell trade, you are basically not trading but paying for it anyway.

[tho401]

@roar Youre definetly right.

I should add, this is for a Rebate Project, the goal actually is to generate as much spread revenue and trading cost as possible.

The goal is Not to make Profit in trading, the Brokerage pays 10$ per lot with a spread of 1.2 - 1.3x pips on a standard Account, so 85% of all generated spread revenues Go back into the Account as Cash deposits (Rebates)

I need this hedge grid to bring at least a little more stability Compared to a normal grid while also generating more spread revenue (Rebates)

[roar]

@tho401 even with rebates to offset costs, surely you pay something for every trade? Otherwise, just make an EA to buy/sell every second and close immediately.

These are honest questions, because if you really get paid a net-positive sum for making trades, I will get into that business right away.

[tho401]

@roar Yes, i guess it would be up to 0.25x pips spread that the Brokrage makes per lot, so 2.5$ per lot. Thats what i still have to Cover.
There is a rule that trades have to be closed a certin amount of pips (points) away from Open price.

To make money you have to be slightly profitable and just Cover the spread and generate a Lot of trading volume with as little risk as posisble

I See the Chance of making money that way through generating trading cost better as making something longterm profitable in trading when over 99% fail longterm anyways.

I have a strategy for generating the spread, but sometimes my strategy fails and then i need a grid (hedge grid) or something better to average the price down or secure exposure, thats where im stuck, bringing stability and securing against trends.

The first part of my strategy is great, its partial close price averaging. In some cases it just goes wrong and thats where i need a Smart management structure wich will reduce risk or average price in a somewhat safe way.

I should add that the grid uses very low lotsize (trade size) Compared to capital, it doesnt has that much risk.
Where it goes wrong is if it keeps adding trades unable to close old trades and generate spread revenue, it keeps adding risk and thats the weak part.

My trade management is where the risk begins and increases exponetially

[tho401]

Right now hedge grid is the best i came up with since its a little safer then normal grid by closing profits on the way down and generating more spread revnue that way.
it averages price down better in strong trends with slightly less risk.

But obviously its still riskiy and maybe not my final stable Solution

[roar]

@tho401 so you are paying very close to what every retail trader pays ($3 per lot). You shouldn't let the complicated reward scheme to cloud your judgement - you are paying for every trade, therefore you should avoid unnecessary trades just like everyone else. But its none of my business, hope you get help in this topic