Electric I have been trading FX for many years, and I have also followed this grid type of thread for many months....
yes, in my projections of the GBPUSD AUG 2003 scenario, I counted profits on daily moves in both directions (both long and short)
the rough calculations I used were generous, I dont think real world results would yield as many pips. So I came up with 27 000, but lets even raise that to 36 000 pips, which is a large number , we now talking 300+ pips per day on GBPUSD - very unlikely after reviewing 5min data in my opinion.
So now you have a 27k to 36k pip profit, and a 290 000 unrealized pip loss.... (assuming 20 pip staggering)
its the same story in the other USD crosses...... so diversification would have amplified the problem, not helped it - all USD pairs got killed, AUDUSD, USDCHF, EURUSD, NZDUSD, USDCAD, USDJPY
I would love for this idea to work, but it really just doesn't when i look at the extreme moves
Other people will then talk about "hedging" the system when a pair breaks a range or level... now this part becomes discretionary - its no longer a "system"... also you now run the danger of your hedge being whipsawed etc etc
So I stand to be corrected, but looking at the numbers this system has never made sense to me.
It will run great until a big moves breaks the ranges and starts a big one directional run
