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Another Grid Strategy Fails

Published on February 8, 2012, by in Scams.

–> I can finally take this one off my myfxbook watch list. Gridmeup has been running for quite a long time but sure enough it only took a trend continuation to take a years worth of gains and put it down the drain.

Gridmeup – It did work on GBPUSD

Consolidation is all it takes for traders to believe that grid trading is a decent idea. However, without the proper protocols aligned with risk management, its only a strategy that works as well as the market conditions.

Changing Market Conditions

If the market conditions change the strategy no longer has the optimal edge to succeed in the long run. Unfortunately, a years worth of a modest income ( track record) continues to tempt traders to use such a simple minded strategy. It’s just a matter of time and changing market conditions to change the views of an inexperienced trader.

Risk Management

Learn from your mistakes or others for that matter and put proper precautions to avoid the unexpected. That’s what trading is all about. Be prepared for the worst and have a game plan when the $&#@ hits the fan. I promise you it’s going to get messier in coming years.

Unexpected

Volatility from 2000 to 2008 were modest. From 2008 to 2012 we’ve experienced a financial crisis caused by a real estate bubble that trickled down to entire countries needing bailouts, currency interventions to sustain economic stability, and a world race to offer zero interest rates all in hopes to bandage a fatal wound.

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