Hi all,
I am wondering if there is a simple grid trading code to buy and sell at predetermined levels on a chart. There was a topic many years back in 2016/17 but this was more of position building and trailing stops etc. What I am looking to do is more simple to start with. An eg:
Index is at 1,000
1) Set the grid size, say 10 points and take profit, say 10 points. Set max index level of grid operation say 900 – 1100. Set start index level of strategy ie only operates once it hits that level, say 1000.
2) Open a buy AND sell position at 1000 with a 10pt take profit
3) If Index goes to 1010 long will be closed. Enter another long and short @ 1010 with same limit.
4) OR if index goes to 9990 short will be closed. Enter another long and short at 9990 with same limit
5) And so on… Every time a grid level (ie 10pts hits) the system automatically opens another Long and/or Short at that level so that you always have one each of long and short positions at every level.
6) It only opens the relevant position so that there is a long and short remaining at each level. ie in above example if index goes from 1010 back to 1,000 then it only opens another long at 1000 as it already still has the original short open from 2)
Yes, you will have to take into account spreads and the spreads will mean you are giving away money each time but this is not meant for trending markets.
And of course if the market goes in one direction only you will have increasing positions and margin to contend with. Hence parameter levels within which the strategy operates are crucial.
But this is just the first test phase where I’m testing and applying to select ranging or long/short bias markets ie ones where there is a good likelihood of this working. Am working on a filter that provides this.
The premise being if an index trades within 990 -1100 for 6 mths you have 200pts to work with if you happen to be so good to time it exactly right each time. But with oscillation you can accumulate possibly many more points than this even if you end up at the same index closing level and you don’t have to try and time it as much.
Happy to share results as we go along so others can benefit. I am manually trading this on certain markets so see some potential. Can prob code this with time but I’m a bit rusty so any help appreciated !
Please ask if any questions.
Many thanks.
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