Acting in my own best interests! The diverse life of Dave

24Sep/080

Removing the variables

I think I have been able to pinpoint why I have a new sense of comfort with Grid style trading that I haven't had with any other strategy before. The standard variable with any trading strategy is the expected profit and loss, or ratio thereof. Grid style trading (if applied with sensible money management and patience), removes that variable ensuring all trades are profitable; the variable then becomes time.

If the pair you are trading gets stuck in a range, you could be in one trade for weeks, which is a huge deviation from the average hold of 21 hours. That's where the patience comes in.

Here is some analysis on the average hold times against the cumulative profits - performance-analysis.xls

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