GRID HEDGING CURRENCY TRADING (by Mark Harris)–
The following is one example of how to trade the currency
forex market using this strategy I created, and Script I
commissioned to be built for me by MethodTraders.com.
Mark Harris Script is not an EA to be used in Metatrader, instead it is a Script. This
Script is not tick dependent to close open positions. So, when the Expert Advisor
button is depressed to the OFF position, then instantly, all long and short placed
orders are deleted, and all open long and short positions are closed out at the
market price regardless of tick. For Mark Harris Script to function, it must be placed
in your brokers Metatraders' Script Folder. ( Find the Expert Advisors folder, then go
to Scripts and place Mark Harris Script in this Folder). This Script is fully
customizable. Below you will find more information...
Mark Harris Script – INSTRUCTIONS FROM METHODTRADERS.COM
Please note that this is a script so you must place this inside experts/scripts folder.
Below are the definitions of the settings:
UseBuyStop = if set to true Script will allowed to place BUYSTOPS
UseSellStop = if set to true Script will allowed to place SELLSTOPS
Slippage = Set the maximum allowed slippage. This input does not apply to ECN brokers
TakeProfit = You can set the pip takeproft per trade, 0 to disable
StopLoss = You can set the pip stoploss per trade, 0 to disable
Levels = This is the number of pending orders that will be placed, 4 means Script will place
4 BUYSTOPS and 4 SELLSTOPS
Initial_Level_Distance = Distance in Pips of price from the First Level Pending Order
Level_Distance_Increment = The Amount of Pips to add to Initial Level, for setting the next trades.
ex. If this is set to 5, levels will be 5,10,15,20 pips apart
Lots = The lot amount of the first level of pending order
AddLots = The amount of lots to add to the next pending orders
TO SET UP CHART IN METATRADER TO DETERMINE STRONG TREND FOLLOW THESE INSTRUCTIONS:
ONLY USE 1 HR CHART FOR DETERMINING TREND - NO LOWER TIMEFRAMES.
LOAD 3 EMA'S ONTO THE CHART -
EMA 5 PERIOD - BLACK COLOR
EMA 15 PERIOD - BLUE COLOR
EMA 60 PERIOD - GREEN COLOR
TO DETERMINE STRONG SHORT (DOWN) TREND:
1) EMA 60 PERIOD GREEN COLOR AND EMA 15 PERIOD BLUE COLOR ARE BOTH POINTING DOWN
2) EMA 5 BLACK IS BELOW EMA 15 BLUE
3) EMA 15 BLUE IS BELOW EMA 60 GREEN
Short when green is on top, then blue, then black is on bottom
Go long when black is on top, then blue, then green is on bottom. Note: These chart Ins. Were found on YouTube.
Below is a demo account demonstration of my Grid Trading Strategy.
In example 1 Screen-shot, I preset this Script to go 7 levels deep, both long and short.
After installing this script onto the chart.. I depressed the Expert Advisor button, and 7 long, and 7 short
stop orders were placed in increments away from the current price. The first level I set to activate 10
pips from the current price. The default setting is 5 pips.. (this is too short). Please note: allow 2
minutes for your metatrader to place the 14 stop orders. This does not happen instantly all at once.
Be realistic.. accept that long and short positions will be filled while trading and hedged trades will
occur. Ideally, you would want just to trade in an extremely strong trending market so only long or
short positions will be filled.. This is unrealistic, and will drive you crazy. To profit from this system
you need only to have price moving in a steady direction.. either long or short. When profit is realized,
then just depress the Expert Advisor button to the OFF position, and every open trade and placed order
will be closed out.
As you can see from the above example 1 screen-shot, as price moves, both long and short positions
were opened on the first level. The starting balance of this demonstration is: $9,613.95 on 11-11-11.
As you can see now in the above close-up example 1 screen-shot, the first level was filled.. There are 2
open orders and below this are long and short pending orders waiting to be filled.
Unfortunately, the second level both long and short were filled too.
As time marches on, the 3rd. Level deep long position was filled.. Let's hope for the best now that price
should continue upward.
Price does not continue upward. The above screen-shot is for Mon. 11-14-11, which is the beginning of
the trading week. The 4th level buy stop order was not filled. Instead, price has turned and is now
heading down.
The above screen-shot shows that on Tue. 11-15-11, the 4th level sell stop order was filled.
On Wed. 11-16-11, price continues to weaken and is heading down.
By the close of the Market on Fri. 11-18-11, the Euro/USD pair rebounded. Let's hope next week that
price will continue down now since there is 4 levels of open sell positions, and 3 levels of open buy
positions..
ON FRIDAY, 11-25-11, ALL OPEN ORDERS WERE CLOSED, AND ALL PENDING ORDERS
DELETED. TOTAL BALANCE NOW IS $9,676.72.
DEMONSTRATION STARTING BALANCE ON 11-11-11 WAS $9,613.95. DEMONSTRATION
ENDING BALANCE ON 11-25-11 WAS $9,676.72.
TOTAL PROFIT: $62.77.
THIS WASN'T THE BEST DEMONSTRATION BUT PROFIT IS PROFIT. PLEASE NOTE, IF YOU
CLOSE METATRADER, AND THEN REOPEN METATRADER.. SCRIPT WILL NOT BE
RUNNING SO YOU WILL HAVE TO CLOSE ALL OPEN POSITIONS, AND PENDING ORDERS
MANUALLY. IF YOU LEAVE METATRADER ON 24/7, THEN THIS WILL NOT BE A PROBLEM.
WHEN YOU WANT TO CLOSE ALL, THEN JUST DEPRESS THE EXPERT ADVISOR BUTTON.
BEST REGARDS,
MARK HARRIS
[email protected]
