Trend-Filtered Grid Trading with Basket Risk Controls
Summary
This document describes an automated system that combines trend and momentum filters with grid entries. It uses an exponential moving average to assess trend and the relative strength index for confirmation, opening an initial position only when both conditions agree. If price moves against the position, the system adds trades using a conservative multiplier, then manages the positions together as a basket.
Position size scales with account balance under a per-thousand model, subject to minimum and maximum lot limits. The basket closes when it reaches a profit target or a maximum drawdown threshold. Optional safeguards include pausing around specified news hours, avoiding a market close period, and isolating trades with a unique identifier. The description provides no backtest, performance figures, or detailed settings for the entry filters, grid spacing, or risk thresholds. Results and risk therefore cannot be assessed from this document alone; grid exposure can grow when prices keep moving against the basket.
Key ideas
- The system opens its first trade only when EMA trend direction and RSI momentum confirmation align.
- Against-position moves trigger grid additions using a conservative multiplier.
- Position size scales with account balance and is bounded by minimum and maximum lot settings.
- Basket trades close at a specified profit target or maximum drawdown threshold.
- Optional time filters and trade identifiers provide additional operational controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.