Forex EA Robot Trading Blog

Question

I see you CarryGrid is doing well so far, I learn about grid trading since last month, as far as I know one side grid like you have (buy only on GBPJPY) has drawbacks, it is when strong trend against our trade (unwinding moment), so have you any protective logic embedded in the EA ? how about is GBPJPY drop to 200-300 pips like 2 month ago…?

Answer

The system is designed to be able to ride out drawdowns, by averaging into positions and keeping positions small, and using the trend as a guide. There is a stoploss setting you can use in case of a major unwinding. the most common drawdown range historically has been around 600 pips. These drawdowns you have to be able to ride out, but the ones that run for 1000+ i agree you want to get out of your positions.

For the next version of carrygrid we plan to add an element of hedging so we move to the short side if we see unwinding happening.

The largest drawdown over the last 9 years ever would have been during this summer.

Labels: Carry Grid EA, drawdown, unwinding