The first thing that you should do is to choose the right trading assets. Here, we will select the major Forex pair. Let’s see how we can apply the strategy on the real platform.
We pick the most popular broker platform IQ Option to explain the strategy. But the strategy can be chosen and implemented on any trading platform.
Suppose, the investment amount is $5 for a sell trade on EUR/USD on the market price 1.1230.
By employing the ‘With-the-trend’ following approach, a grid of several pending orders needs to create at the same distance.
- 1.1225 (sell order above the market price level)
- 1.1220 (sell order above the market price level)
- 1.1230 (market price)
- 1.1235 ( buy order below the market price level)
- 1.1240 (buy order below the market price level)
Based on each price level, we have to set a stop loss and take profit for each level. And then wait for the price movement, upward and downward, triggering the orders.
You can put more orders, but 3 to 5 is considered as the standard ones for this grid. As for the exit plan of the strategy for those trades, one can choose to close all at once. Or if a trader wishes to close one by one, he can do so.