Grid King EA

Grid King EA is a grid trading innovation. The primary goal in developing the EA was to ensure safety by eliminating the margin-call risk that is commonly linked with most grid systems on the market. It also aims to achieve possible higher returns than the average grid system by spreading risk across multiple pairs and strategies, each of which has a limited impact on account equity.

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 King EA works. Hopefully, that will help you to decide if this is a trading robot that you would consider using on your trading account.

Trading with Grid King EA

The EA employs a proprietary Spread Equalizer Algorithm (S.E.A.) that significantly reduces the effect of spread and slippage on stability. Currently, two entry methods are in use:

  • The “volatility breakout” approach, in which the EA trades in the direction of large price movements.
  • “Return to Mean” strategy, in which the EA takes advantage of the reality that price always returns to the mean.

Volatility Breakout Approach

The “volatility breakout” approach is a trading strategy that aims to profit from sudden price movements that occur after periods of low volatility. The idea behind this strategy is that when the market is in a period of low volatility, there is a higher probability of a significant price movement in one direction or the other. The EA uses this approach to enter trades in the direction of the breakout, hoping to profit from the subsequent price movement.

Here are the key steps involved in the volatility breakout approach:


  1. Identifying a period of low volatility: Identifying a period of low volatility by looking for a prolonged period of stable prices, as indicated by narrow price ranges or low trading volumes.
  2. Setting up the entry and exit points: Setting up entry and exit points for the trade based on the recent price range.
  3. Entering the trade: When the price breaks out of the range, entering the trade in the direction of the breakout.
  4. Managing the trade: Managing the trade by setting stop-loss and take-profit orders to manage risk and maximize profits. Stop-loss and take-profit levels may also be adjusted as the trade progresses, based on market conditions.
  5. Exiting the trade: Exiting the trade when the price reaches the take-profit level, or if the price moves against the trader and hits the stop-loss level.

Return to Mean Strategy

The return to mean strategy, also known as mean reversion trading, is a trading strategy that is based on the idea that prices of assets tend to move in cycles, oscillating around an average or mean price over time. The strategy involves identifying when the price of an asset deviates significantly from its mean, and then taking a position in the opposite direction, in the expectation that the price will eventually revert back to its mean.

Here are the key steps involved in the return to mean strategy:

  1. Identifying the mean: Identifying the mean price of the asset to be traded. This could be the asset’s moving average, the mid-point of the recent price range, or another technical indicator that reflects the average price of the asset over time.
  2. Identifying deviations from the mean: Identifying deviations from the mean, either above or below it.
  3. Taking a position: When the price deviates significantly from the mean, a position could be taken in the opposite direction, anticipating that the price will eventually revert back to the mean. For example, if the price is significantly above the mean, a short position could be taken, in anticipation that the price will fall back towards the mean.
  4. Managing the trade: Managing the trade by setting stop-loss and take-profit orders to manage risk and maximize profits.
  5. Exiting the trade: Exiting the trade when the price reaches the take-profit level, or if the price moves against the trader and hits the stop-loss level.
Grid King EA
Grid King EA

Grid King EA Characteristics

  • “Safety first” approach in development.
  • Optimizable for any market.
  • Fully automatic.
  • Not sensitive to spread, commission, or account type.
  • A low spread ECN broker is recommended.
  • Optimized pairs: EURUSD, GBPUSD, USDCAD, USDCHF, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, EURAUD, EURCAD, EURGBP, AUDNZD, EURCHF, AUDCAD, AUDJPY, GBPCHF, AUDCHF, CHFJPY, CADJPY, CADCHF, GBPCAD, NZDCAD, NZDJPY, NZDCHF, GBPNZD, EURNZD, GBPAUD and XAUUSD
  • You can use the same magic numbers on different pairs. But the 2 different strategies must use 2 different magic numbers.
  • One of a kind S.E.A. (Spread Equalizer Algorithm), which greatly improves stability for bigger spreads and slippages.
  • Easy Setup: With the OneChartSetup, you can run all pairs from a single chart.

Conclusion

Grid King EA has some potential which could be utilized by traders who are looking for an automated trading system. This forex trading robot uses both volatility-breakout and return-to-mean trading strategies to execute trades automatically for the traders. Traders may want to consider if these are trading strategies they would be comfortable with before using the Grid King EA on a real account.

Free Forex Robot