PendingOrderGridSystem

BySimplecoders

10_____________________Eachlineindicatesthegridlevelswitha20pipdistance.

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TheStrategy:
Saythedistancebetweentwogridsis20pipsi.e.,thedistancebetween1and2,2and3soonis20pips.

Thecurrentpriceisatsaynumber4.

Sothependingordersareplacedat5(Buypendingorder)and3(sellpendingorder)

Scenarioduringtrendingtimes:

(1) Whenthebuyorderat5istriggeredthependingsellorderwillbecancelledandanotherpairof
buyandsellpendingorderswillbeplacedat6and4respectively.
(2) Whenthebuyorderat6istriggered,thependingsellorderat4iscancelledandanotherpairof
buyandsellorderswillbeplacedat7and5respectively.
(3) Thereversewillbetheprocessifsellordersaretriggered.
(4) Theaboveprocesswillgoonuntilallthetradesareclosedatpredesignatedprofitorattheend
ofthedayforNFAcompliantbrokerslikeIBFX.

Butsuchanicetrendingscenariodoesnotoccurquiteoften.


Scenarioduringrangingtimes:

(1) Whenthebuyorderat5istriggeredthependingsellorderat3iscancelledandanotherpairof
buyandsellpendingordersareopenedat6and4respectively.
(2) Whenthepricecomebackto4,thesellorderat4isexecutedandthependingbuyorderat6is
cancelled.Andanotherpendingsellorderat3isplaced(nopendingbuyorderat5isplacedas
wehavealreadyonebuyorderat5.Atthispointofpricewehave20pipslossforbuyorderand
0pipslossatsellorder.
(3) Ifthepricegoesbackto5apendingbuyorderat6isplaced.
(4) Ifthepricerangesbetween4and5throughoutthedaythenetlosswillbecontainedto20
pipsonlyfortheday.

Inasimilarwaythenetlosscanbecalculatedifthepricerangesbetweensay1and10continuously
throughouttheday.Itwillnotbemorethan20pipsfortheday.(HopeIamright!).

Ingeneralthenetlosswillnotbemorethanthedistancebetweentwogridsintermsofpips+the
spread.

Thelessthedistancebetweenthegrid,morethechancesofgoodprofits.

Butmanuallyitistoughertocarryout.HenceweneedanEAtoexecutethetrades.