Grid Trading Advantage Explained – It Can Profit from both Trending and Ranging Markets

1. Grid Trading Advantage
It Can Profit from both
Trending and Ranging Markets

2. Yes, this is correct. By using a grid trading system (or a grid portfolio) you
can make profit from both trends and sideways movements. For example
using a directional grid you can profit while the market is trending. And using
a classic grid (fully hedged grid) you can make pips during sideways
movements too. So we have grids to handle every type of market.

3. Ok, but wait, how do we know what grid to apply and when? Well, this is a
bit of a problem. And as with any problem there are various solutions. For
example you can use an external indicator to tell you if you are in a trend or
not. Or you can pre-select times that are highly likely to have trends (like
when the news announcements come) or sideways movements (quiet hours
of the day or right after a big trend). Then another way to approach this is to
trade with a grid portfolio of both directional and classic grid(s). Let the one
handle trends and the other ranging markets.

4. And finally there’s another type of grid that you can use to solve the above
problem too. We call it “dynamically hedged grid”. Why? Because it
hedges only if necessary i.e. dynamically. By default it is a directional grid,
but if the price reverses then it will start hedging. It combines the strong
sides of both directional and classic grids. It thrives on trends but it is
capable of handling sideways markets too. And because of these it is
our favorite type of grid to use.

5. So, yes, you can use Grid Trading to make profit from both tending
and ranging markets. It is truly a versatile trading system.

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