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  1. #1
    Senior Member grindtime's Avatar

    Working on a different type of strategy using the grid !!!

    Ok so I'm working on a strategy where I take a box off my grid and measure the the close of each candle from the starting line of the box to the end line. Each box contains 7 periods on the chart I'm using. So really just measuring the CLOSE of candles of 7 period increments. Starting with the 1rst and the last in each 7 period increment.

    In downtrends if the close is lower than the first candle on the last candle of the box( 7th period ) for a total of 5 boxes in a row. At the start of the next period. I will place a PUT with an expiry 7x the chart time frame. Or is as close I can get. So if it's a 1 hr chart I would place an end of day. 1 day chart I would place a week expiry. I think this will work well with strong trending pairs.

    I am testing this theory out and will keep you posted. I think if a pair is trending that strong and sustains the trend for 5 boxes on my grid / 35 periods. That it's a very safe assumption that the 6th box will continue with the current pattern.

    When I take these trades I plan on making a much larger investment as there will be very few of these set ups that occur a month but the quality will be super . So I plan to invest 3-4 X my normal trade amount when I notice these set ups.

    I will keep you posted by updating this thread with my test results. I have an open trade right now I pulled off the GBP/USD 10 min chart. Will let you know the results.
    Last edited by grindtime; 08-04-2014 at 11:29 PM.

  2. #2
    Senior Member grindtime's Avatar
    Here's a pic for illustration.

    Click image for larger version. 

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  3. #3
    Senior Member grindtime's Avatar
    I just started testing this out so not recommending it yet. But I will keep everyone updated

  4. #4
    Legendry Member Michael Hodges's Avatar

  5. #5
    Senior Member grindtime's Avatar
    Click image for larger version. 

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    Ok this an OPEN trade..... I have made 2 trades with this method so far. They were both in the money. Again it has to be a strong trend and fundamentals should support your trade direction. This trade I just took was from the 10 min chart and I took a 1 hour expiry at 4:00 EST ...

  6. #6
    Senior Member grindtime's Avatar
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    Ok here is another set up I just came across. So far all the trades I made using this technique have been ITM. Let's go for another one. This technique isn't full proof. But it's proving itself a worthy addition to my price action based trading.

  7. #7
    Master Member SeasaltMcFish's Avatar
    I still don't get it completely, but I watch with interest

  8. #8
    Senior Member grindtime's Avatar
    Last trade was a loser. Making some tweaks to this technique. Need to be aware of upcoming possible reversals (Ive added Fibo lines to my charts ) and also aware of the ATR .

    So far I'm 3 and 1 using this. I think it will have a high success rate 80% plus. We're only taking trades in really strong trends with the trend with an expiry of 5-7 periods away from current candle.

    Seasalt an easy way to understand it.... If the close is higher or lower every 7 candles for 35 candles than we place a call at the close of the 35th candle with an expiry 7 periods out.

    I use the boxes on my grid to keep from counting . But thats the gyst of how it works. Again nothing is set in stone. You could adjust it and count 3 boxes or boxes ect. I'm toying with it to see what works best and how. I will keep posting results and tweaks here. This very well may become my way of trading.

  9. #9
    Master Member SeasaltMcFish's Avatar
    Ah, thanks, now I understand. Thanks

    Guess it was a little late yesterday

  10. #10
    Senior Member grindtime's Avatar
    Actually the trade I took I used 6 boxes instead of 5. So I made the trade on the 7th box instead of the 6th. So that'll be my excuse . Won't go over 5 anymore.

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