ElectricSavant
Registered: Jan 2003
Posts: 14844 |
12-29-11 08:52 PM
This EA illustrates a grid without any indicators with a mindless progression of trades throughout a range.
Below is the monthly chart of the EUR/GBP showing the dates from 09/01/1990 to the date of this post.
- Notice that on 12/01/08 a high was realized of 0.9800.
- Notice that on 05/01/2001 a low was realized of 0.5680.
This instrument has seen a range of 4,120 PIPS over the last 21 years and is currently trading towards the
high end of the range roughly 1400 or 1500 pips away from the all time high.
What does this mean for the Super Money Grid EA ?
If your grid space is 15 PIPS that would mean that you should prepare for 275 open positions. 1:500 leverage for
you global traders would equate to about $500.00 of margin cost. If the balance of the trades were all one
direction then maybe 1K of margin would be needed.
The nature of the super money grid is to keep trading the back and forth movements and to realize profit during
the carry. This profit from the movement should exceed the cost of carry and allowing for the entire historical
range should net you 50-100% yield per year with a reasonable risk.
The biggest risk is if the EURO collapes..or your dealer takes off with your capital. A secondary risk is if 4,120 PIPS
of range is exceeded (this would take several years and you could add capital if needed).
If my math is correct. Start capital of two to three thousand USD per dealer with 1:500 leverage could net you a
nice income, considering this is a set & forget type of investment.
My math is based upon 10 cent a pip trade sizes without martingale or other progression and a grid size of 15
and a tp of 15.
Would some of the mathematicians check my math and correct me where I am wrong please? Remember some
offshore dealers treat longs and shorts as one trade, so when calculating your FXMath take that into account.
 eurgbp monthly.gif
This has been downloaded 1782 time(s).
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