Discover How the Forex Trading Grid Technique Can Help You Make Money

Table of Contents

Why Use a No-Stop, Hedged Grid Trading Strategy?

In previous articles, we explored the concept of trading Forex without using stop losses. Now, let's dive into the most critical component: how to actually make money with this approach by utilizing a structured grid trading strategy.

The key idea behind this system is simple yet powerful: place both a buy and a sell order at every grid level. This may sound counterintuitive to traditional traders, but in a hedged Forex grid system, it allows you to profit from price movement in either direction—without trying to predict it.

Forex Trading

Understanding the 100% Retracement Grid Formation

Let’s illustrate this with a basic grid system using 100 pip intervals. Imagine the price starts at 1.0100. At this level, you open a Buy (Buy 1) and a Sell (Sell 1) order simultaneously.

1. The price moves up to 1.0200.
2. Buy 1 now has a +100 pip gain, while Sell 1 has a -100 pip loss.
3. You close Buy 1 and lock in +100 pips profit.
4. At 1.0200, you now open a new Buy (Buy 2) and a new Sell (Sell 2).

If the price then returns to 1.0100:

• Buy 2 now shows a -100 pip loss.
• Sell 2 gains +100 pips, which you close for another profit.
• Sell 1 is now at break-even, and Buy 1 was already closed for +100.

The result? You’ve gained a total of +200 pips from two trades, while two trades are neutral or at a minor loss, giving you an overall net profit of +100 pips.

Breaking It Down Mathematically

The profit comes from what’s called a 100% retracement—the price returns fully to its original level after moving a certain distance. By strategically placing buys and sells at each grid level, you’re creating a system where any back-and-forth movement translates to real gains.

This strategy eliminates the need to predict market direction. As long as price moves—whether it trends or oscillates—you can continue collecting profits with careful grid management.

Tips for Applying This Strategy

• Use fixed grid intervals (e.g., 100 pips) based on the volatility of the currency pair.
• Stick with major pairs that have high liquidity and lower spreads.
• Keep track of open positions and profits with a journal or trading software.
• Understand that this strategy is better suited for swing trading than scalping.

Final Thoughts

The hedged grid system provides a powerful alternative to traditional stop-loss-based strategies. By setting up opposing trades and capitalizing on natural market retracements, traders can profit from both trending and ranging markets.

This 100% retracement example is just the beginning. In the next article, we’ll explore how to use the 50% retracement formation to achieve similar results with fewer grid levels.

Stay tuned—and consider practicing this method on a demo account before going live!