Price Keeps Moving? Here’s What to Do

Sometimes, even after meticulously setting up all your trades in a grid martingale strategy, the price action might not unfold as anticipated, leaving you without the desired profit. This can occur due to two key factors:

• Bigger Price Swings: The price movement is bigger than expected.
• Unexpected Events: Events like wars or elections shake things up.

Wait or Take Action?

If the price move seems temporary and not caused by big news, you can wait for it to reverse. But this only works if you’ve managed your risk well and have some wiggle room for more losses. Want to learn more about risk control? Check out Grid Martingale: Path to your Remarkable Victory Now.

Taking Profits and Lowering Risk

Once you have some winning trades, you can take some profits and actively lower your overall risk. Here are two ways to do this:

1. Flattening

Use the profits from your winning trades and flat your earlier losing trades back to their starting lot size. This lowers your risk if the price keeps going against you.

2. Shrinking

Use the profits from your winning trades to completely close out some of your earlier losing trades. This also lowers your risk, but it might not close all your losing trades if they are too big.

There’s no right or wrong order for flattening or shrinking. But generally, it’s best to flatten trades with larger sizes first. When shrinking, be aware that some losing trades might not close completely, and your new trade size might be smaller than the previous one. Here’s the key takeaway: don’t shrink more losing trades than the number of profitable trades you’ve already closed.

Manual Control in Grid Martingale

Instead of setting all 20 trades in your grid martingale at once, consider leaving room for some manual entries. This allows you to be more selective and potentially boost your profits. For example, imagine you’re planning a 20-trade grid martingale for the EUR/USD currency pair. You can set your automated trading system to enter only the first 16 or 17 trades at predetermined intervals. This leaves 3-4 slots open for manual intervention.

The Key Takeaway

Managing your trades well is key to success in any trading strategy, and grid martingale is no different. By using techniques like flattening and shrinking, you can adapt to changing market conditions, lock in profits, and minimize losses. Remember, a balance between automated trading and manual intervention is important. With careful planning and execution, you can navigate the markets with confidence.