I thought that grid trading was high risk, like martingale systems? (Not being offensive just wondering)
Grid trading can be high risk, but it depends upon how you use it. Examples include:
- martingale (multiplying starting lot size) will increase risk exponentially and is extremely risky;
- small grid size (distance between orders) will increase risk quickly in sustained market movements;
- starting with a large lotsize relative to your balance (self-explanatory);
- unfiltered market entry: orders will be opened counter-trend at the beginning of a trend, sooner, thus increasing risk.
Like any tool, it can be effective if used correctly. Risk management is indispensable, especially with grid trading. If you keep the above points in mind, the only time you should suffer account loss is during black swan events such as Swiss Central Bank depeg decision (2015), Brexit Referendum (2016), or the 'Flash GBP Crash' (aka Fat Finger Error) (2016).
Happy trading! 😎