Grid EA is considered one of the most famous strategies in the world of Forex, as this type of expert depends on opening buy and sell orders at different price levels without the need for an accurate prediction of the market direction. Grid EA is distinguished by its ability to exploit the Sideways or market fluctuations, as the expert opens buy and sell orders at the same time.
Key features for Grid EA
What is a Grid EA?
Grid EA is one of the most famous experts in the Forex market and uses unique strategies as it depends on opening multiple orders at different levels. The expert does not depend on determining the general trend of the market and opens buy and sell orders ignoring the general market direction. However, if the market reverses and the trade incurs losses, it opens Hedge trades to compensate for these losses. It mainly depends on distributing orders, whether they are buy or sell, at equal distances.
The Grid strategy does not depend on determining the direction, so you find it more effective in the clear Trend in order for the price to exit the range of open orders and reach the take profit of the sell or buy orders. The basic idea about the Grid EA is to exploit the price movement in both directions, as it opens many buy and sell orders at the same time, which allows the trader to achieve profits in times of high volatility regardless of the market analysis or the general trend.
How Grid EA Works
Grid EA works mainly on the Hedge strategy, where it aims to open many orders at different price levels simultaneously. Based on this strategy, it distributes the buy and sell orders over a specific price range within which the market moves, and automatically opens buy and sell orders in this range. For example:
If the expert opens a sell order on the EUR/USD pair at 1.2100 and the price rises and reaches 1.2150, the expert will automatically open a buy order. This indicates that the range is 50 points. In other words, if the price falls again by 50 points, it will open a sell order, and if it rises, it will open a buy order, and so on.
The advantage of the Grid EA is that it does not depend on predicting the general trend of the pair, as it opens buy and sell orders based on the range it has specified. There is no difference between opening a sell order first or a buy order first because it will open both orders if the price reverses on the trade.
Grid EA Steps
Grid EA Steps
1 – First, the Expert determines the range on which it will open buy and sell orders by specifying fixed price levels, for example, 50 points. If the price moves to 50 points, it will open an order opposite to the first order, and so on.
2 – Multiple orders, The expert depends mainly on opening multiple orders, as it opens many buy and sell orders if the price goes against the desired direction.
3 – Risk management, Certainly with all these orders that the expert opens, it must be careful to manage the risks appropriate to the account so that the trader does not lose all his capital. The expert opens orders with a lot size that is proportional to the account balance and also places a stop loss and take profit in all open orders. Accordingly, the stop loss for selling orders is the take profit for buying orders and vice versa.
4 – Close orders, When the price breaks the specified range and achieves the desired target, the expert closes all open positions, both buying and selling, so that no trade remains open.
Common Mistakes
One of the common mistakes that should be avoided when using Grid EA is not setting a stop loss correctly because the expert basically works to open many buy and sell orders and calculate the lot based on that and setting the stop loss and take profit is very important because if these levels are calculated incorrectly, the expert will close the orders at a loss and not a profit.
Another mistake you may encounter is increasing the range excessively. It is possible to set 10 points, 20 points, or even 50 points as a fixed range to open buy and sell orders, but if you decide to set only 3 points, you will notice that the expert opens many orders that the account will not be able to handle. The opposite is also true if you decide to increase the range excessively, the trades will remain open for a long time.
Conclusion
The Grid EA strategy is a very good strategy for most traders and is one of the most popular strategies in the world of Forex. It can achieve profits regardless of the market direction. What distinguishes this strategy is that it does not depend on analyzing the market direction and opens buy and sell orders ignoring the general trend. In order to be able to apply the strategy correctly, it is preferable to choose an appropriate range to open buy and sell orders and determine the appropriate take profit and stop loss to achieve a good profit.
