Watched the first 3.5 minutes but what the YouTuber Guru failed to mention (besides the obvious, he likely doesn't trade profitably) is that buy and sell orders are entered using two different accounts. Otherwise as previously posted they cancel it other out and all you do is make your broker happy. Also leaving open alternately orders long enough and enough times the broker will be sad because you had to close your account uhh because the balance reached zero.
Exit trades based on mid/last/mark price reading?
- Thread starter MrAgi1
- Start date
Exactly. But there are legitimate brokers that don’t follow FIFO. Also following a system or any system blindly is not right, that’s why variations can be made.
For example closing trades at the 3rd level maximum. Still guarantees nothing but it’s a start.
It's not a matter of FIFO when you are trading two separate accounts. Most brokers, reputable ones, don't allow two separate accounts What I am referring to is different accounts at different brokers.
Enter a buy and sell in same account they cancel out.
Well that’s interesting. It seems like a US problem.
Only watched the first few minutes.
No need to be long & short.
Current price = A.
Place a sell limit 100 above A (pt. B) and a buy limit 100 below A.
When price reaches B you now have a short (same exposure as his method). Place a buy limit at A and sell limit at C.
When price reaches C you now have 2 shorts (same exposure as his method) so place a buy limit at D.
When price reaches D you have a profit of 100 plus an open short at break-even (same profit & exposure as his method).
Keep adding limits as new orders are filled.
Having long & short at the same time is madness (with the exception of a few traders that scalp inside their swing trades). Closing a buy position at pt. B and immediately opening a new buy is madness (unless you enjoy feeding your broker).
This is just a grid martingale system. Works best with ranging/choppy markets but strong trends like Yen recently and you'll be sitting on sizable losses.
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Any random combination of buy and sell would perform with same results. You can't game market with trading "techniques" you should understand where your edge comes from!
@BKR88
Fair enough. What you described is a brilliant and cost effective way of making the same trades as he described in the video. Yes, a sudden trending market(like recently the GBP and YEN), would be a nightmare for the described grid strategy. Grids as we know are probably the most dangerous trading strategy that exist(except for the infamous martingale/multiplier). However, that’s why trading most strategies online directly is not wise, but I don’t think it good to completely discard all online strategies also. I found interesting the described grid strategy because, I think it might be possible to improve the strategy(even if it’s by a little amount).
For example:
1. Trading the grid strategy in liquid and extremely low volatility assets.
2. Diversifying/balancing/rebalancing multiple uncorrelated grid trades(Consider the Parrondo’s paradox; which I just learned about today, Lol
). https://www.elitetrader.com/et/thre...atical-expectation.370060/page-6#post-5688638
3. Lastly, what about hedging with far OTM vertical spreads? Or some other options strategy? Or even 1st generation exotics like a no-touch option?
Just a fun intellectual exercise. What do you think?
Fair enough. What you described is a brilliant and cost effective way of making the same trades as he described in the video. Yes, a sudden trending market(like recently the GBP and YEN), would be a nightmare for the described grid strategy. Grids as we know are probably the most dangerous trading strategy that exist(except for the infamous martingale/multiplier). However, that’s why trading most strategies online directly is not wise, but I don’t think it good to completely discard all online strategies also. I found interesting the described grid strategy because, I think it might be possible to improve the strategy(even if it’s by a little amount).
For example:
1. Trading the grid strategy in liquid and extremely low volatility assets.
2. Diversifying/balancing/rebalancing multiple uncorrelated grid trades(Consider the Parrondo’s paradox; which I just learned about today, Lol
). https://www.elitetrader.com/et/thre...atical-expectation.370060/page-6#post-56886383. Lastly, what about hedging with far OTM vertical spreads? Or some other options strategy? Or even 1st generation exotics like a no-touch option?
Just a fun intellectual exercise. What do you think?
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@BKR88
Fair enough. What you described is a brilliant and cost effective way of making the same trades as he described in the video. Yes, a sudden trending market(like recently the GBP and YEN), would be a nightmare for the described grid strategy. Grids as we know are probably the most dangerous trading strategy that exist(except for the infamous martingale/multiplier). However, that’s why trading most strategies online directly is not wise, but I don’t think it good to completely discard all online strategies also. I found interesting the described grid strategy because, I think it might be possible to improve the strategy(even if it’s by a little amount).
For example:
1. Trading the grid strategy in liquid and extremely low volatility assets.
2. Diversifying/balancing/rebalancing multiple uncorrelated grid trades(Consider the Parrondo’s paradox; which I just learned about today, Lol
3. Lastly, what about hedging with far OTM vertical spreads? Or some other options strategy? Or even 1st generation exotics like a no-touch option?
Just a fun intellectual exercise. What do you think?
Use a SL on new entries after ___ entries in the same direction to prevent a sizeable position.
Other methods create complexity. I prefer simple.
