Forex Grid Strategy

March 6, 2016

Traders often get intimidated once they see various charts most commonly used with different trading strategies. Yes, they will eventually learn how to use and analyse them properly in order to incorporate them into their trading methods, but is there an easier way to create a strategy that works well and there will be no need for you to spend hours and hours in front of the screen every day? There sure is. We will introduce you to Forex grid trading system in this article and you will see how easy Forex trading can be.

Forex Grid Strategy

Forex Grid Strategy

If spending less time on thorough market analysis and focusing on just a couple of most important details is your trading method goal, this strategy might be exactly what you need.

The basics of Forex grid strategy

Before we start explaining what Forex grid trading is in detail, it is important to know that you need to have the basic knowledge of Forex as well as some experience when it comes to analysing the charts and understanding how they actually work. Diving straight into Forex grid system without any previous comprehension is not recommended.

To put it as simply as possible, Forex grid strategy focuses on a certain trend and its movement, whether it is upward or downward. The main goal is to closely follow these fluctuations over a certain period of time and a trader should aim to complete buy or sell orders when a trend is around ten pips away from the current price of a chosen trend.

Probably the most beneficial part of the grid Forex strategy is the fact that you don’t have to predict a trend’s direction since you are trading so closely to the trend’s current price. There is no need for you to dwell into a thorough market analysis and trying the guess which factors might influence a trend and in which way.

Opened positions

On the other hand, you will be required to have several positions opened at the same time if you want to profit from this type of trading strategy. This might not be suitable for all traders since it might be a bit too risky to keep a number of open positions. But managing your time properly and identifying the right rhythm of opening and closing positions can help you out with this issue. Also, placing a stop-loss order within Forex grid strategy is sometimes overlooked and traders seem to completely forget about it. Stop-loss orders can come in handy and you should definitely spend some time placing them correctly in order to protect your funds.

Forex grid trading strategy explained

Forex Grid Strategy

The most basic concept of the grid strategy is buying or selling within ten pips parameters around a trend. If a price moves ten pips above the trend, the order will be sold, and if it goes in the other direction, you will be advised to take profit before the price starts plummeting even more. There is also a possibility that you will be “trapped” in the middle for a longer period of time.

Forex grid trading strategy is very visual. Once you start your trading platform, adjust the settings you will need in order to use this method, and open up the charts, you will see how straight forward and easy it really is. You will be able to have all the details you need right there in front of you. First thing you need to do before you begin using this strategy is to make up your mind as to which asset you want to trade. If you go for multiple assets, you will be spreading yourself too thin, since you have to work pretty hard in order to stay on top of all open positions that are spread over a grid.

Secondly, in order for grid FX trading strategy to work properly, you need to have several positions open at the same time. This might cause a psychological pressure to traders who are simply not used to this type of trading, especially if the price keeps dragging under a trend line and it seems like it is never going to rise up.

The consistency

What you need to understand is that in order to see the results of Forex grid strategy, you need to give it some time. Grid trading Forex requires your commitment and persistence. The first results might not be visible after just a week of applying this type of strategy, but they will be there after three weeks or a month. Plenty of traders give up altogether on Forex grid strategy very quickly, without giving it a proper chance. You need to keep your head in the game and be aware of the volatility of the market.

The usefullness of demo accounts

If you are not feeling confident about your knowledge of Forex grid strategy, the best possible way to see if you are capable of executing it well with your account in the future is to create a demo account with your broker and test it out. Demo accounts come with no risk and even if you fail, your funds will be safe and sound since you will be putting demo money on the line. These types of accounts are ideal for trying out strategies or simply for learning about Forex trading in general. You should most definitely use them to your advantage.


Sure enough, Forex grid system is more engaging than doing fundamental analysis all the time and trying to predict what might create an impact on a trend direction. It is visual and that gives a better overview to a trader. It does carry a bit of a psychological strain since a trader is supposed to successfully manage a number of open positions.

Also, market can be very volatile and prone to constant fluctuations. Forex grid strategy requires a sufficient amount of money on your account and it is almost impossible to successfully trade this strategy if you don’t have enough funds to back you up in a case of emergency. Also, don’t be unreasonable and expect millions to appear on your account overnight. Forex grid strategy needs to be mastered and learned, just like every trading method out there. Slow and steady wins the race, right?

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