A Floating Range-Based Grid with Per-Order Take Profits

Summary

The article develops a floating grid that places buy-stop orders above the current price and sell-stop orders below it, then updates the pending orders as price moves. Each position has its own take profit, while orders far from the market are removed and replaced to keep the grid centered around price. Grid spacing is tied to decimal price levels, optionally shifted from round-number levels. The author also discusses order count, position size, take-profit distance, aggregate closure rules, and alternative order types.

The proposed rationale is to collect individual profits during trends and corrections while the grid follows price through a range. The article reports that prior grid tests lost capital in one historical period, and says this revised approach performed better than the earlier version, but its conclusion still describes the strategy as very risky and capable of destroying a deposit. Stop losses, trailing stops, and increasing order sizes did not improve risk-adjusted outcomes in the reported tests. Results are historical and do not establish future performance.

Key ideas

• The grid maintains pending buy stops above price and sell stops below it, replenishing orders as price changes.
• Each filled order has its own take profit, measured in grid steps.
• Decimal price levels provide a way to define regular spacing around round prices.
• Smaller take profits may close positions more often, while larger targets can capture more during sustained moves.
• The author reports substantial risk and warns that the strategy can still cause severe account losses.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.