Averaging Grid Strategy with Optional Martingale Sizing
Summary
This description outlines a currency trading adviser built around pullback entries after price moves a specified percentage away from the day’s low or high. It aims to enter after a strong move, then hold the initial trade toward a planned profit target. If price moves against the position, the adviser adds same-direction trades at configured distances, averaging the entry price so a smaller reversal may bring the basket back to breakeven or profit.
The averaging can use constant trade size or Martingale sizing, where each added order is larger. The document claims the Martingale version needs a smaller reversal to close the series, while warning that a sustained move of 300 to 400 points can require substantial funds. It describes configurable spacing and slippage, but supplies no independent test results, drawdown figures, or robust risk analysis. Its entry success ratio is presented as a design goal rather than verified evidence, and averaging can magnify losses when the market keeps moving against the position.
Key ideas
- Entries are triggered by a percentage move from a daily price extreme, seeking a pullback.
- The initial position is held toward a planned profit target.
- Adverse movement prompts same-direction additions to improve the basket’s average entry price.
- Constant sizing and Martingale sizing are presented as alternatives.
- Martingale may need a smaller reversal to exit, but increases capital requirements and loss risk during persistent moves.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.