The Grid Harvester EA is based on the well-known grid strategy used by social traders. Its goal is to make the most of a trending market (on automatic mode) by taking advantage of trend corrections. It can also be used manually by experienced traders. Traders could use this automated strategy to supplement their trading experience! It includes a grid for GBPJPY that can be easily scaled to other currencies. You can also create your own grid from scratch! The Expert Advisor is very simple to set up.
This Expert Advisor can be purchased from the MQL marketplace whilst there is a free demo version also available to give it a try before making any commitment. In this article, I will be taking a look at how the Grid Harvester EA works. Hopefully, that will help you to decide if this is a trading robot that you would consider using on your trading account.
Grid Trading with Grid Harvester EA
Grid trading is a popular forex trading strategy that involves placing a series of buy and sell orders at regular intervals or “grid” levels, typically at equal distances above and below the current market price. The aim of the strategy is to profit from the fluctuations in the market by capturing small price movements while minimizing losses.
The grid trading strategy is based on the principle of “averaging down” or “averaging up,” where traders add to their positions at predetermined levels, either higher or lower than the initial entry price. This can help traders to minimize their losses if the market moves against them, as the additional positions at different grid levels can help to offset any losses incurred by the initial position.
The key to successful grid trading is to carefully select the grid levels and the size of the positions, taking into account the volatility of the market and the risk tolerance of the trader. Some traders may also use stop-loss orders or other risk management techniques to limit their losses and protect their capital. The Grid Harvester EA automatically uses this strategy to execute trades on behalf of the traders.
Overall, grid trading can be a useful strategy for traders who are looking to capitalize on short-term price movements in the forex market while managing their risk effectively. However, like any trading strategy, it requires careful planning and execution to be successful, and traders may want to be aware of the risks involved and have a clear money management plan in place.
Benefits of Grid Trading
- Profit potential: Grid trading can offer the potential for consistent profits in ranging markets, as the strategy relies on price movements between predetermined levels.
- Reduced risk: By placing multiple orders at various price levels, grid traders can limit their risk exposure and protect themselves from sudden market movements.
- Automation: Grid trading can be automated using algorithmic trading software, which allows traders to execute trades automatically without the need for constant monitoring.
- Diversification: By trading multiple currency pairs or other financial instruments, grid traders can diversify their portfolio and reduce their overall risk.
Risks involved in Grid Trading
- Limited profit potential: Grid trading is a range-bound strategy, meaning that profits are limited to the price range in which the trades are placed. If the market breaks out of this range, the trader may miss out on potential profits.
- High transaction costs: Grid trading involves placing multiple trades at regular intervals, which can result in high transaction costs, particularly for traders using high-frequency trading strategies.
- Over-optimization: Traders may be tempted to fine-tune their grid trading strategy to maximize profits, which can lead to over-optimization and reduced profitability in real-world trading conditions.
- Market volatility: Grid trading can be vulnerable to sudden market movements, particularly if the trader has not placed stop-loss orders or other risk management measures in place.
Grid Harvester EA could be a beneficial trading robot for traders with different levels of experience. It uses the grid trading technique, which is a risky trading technique, so traders/investors may want to ensure that they are comfortable with grid trading before purchasing the robot.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.