Grid

Mechanism

The EA divides a price range into equal steps (e.g. every 20 pips) and places pending buy stops and sell stops at each level. As price oscillates through the grid, filled orders generate running profit. Positions are closed when net floating P&L crosses a configurable threshold. Grid width, step size, and lot scaling determine maximum drawdown.

Suitability

Profitable in consolidating, low-trend markets (ADX < 20). Severely disadvantaged during sustained trends: if price breaks out of the grid range, unrealised losses compound quickly. Best on EUR/CHF, USD/CHF in calm macro environments. Requires $3,000-$10,000 minimum to absorb multi-level open exposure.

Notes

Grid trading abandons the idea of predicting direction. Instead it places a mesh of buy and sell orders at fixed intervals and harvests profit from oscillation — every time price swings back and forth through the grid, filled orders bank small gains. In a quiet, range-bound market this produces a smooth, almost boring equity curve, which is exactly why grids are seductive.

The danger is the trend. When price breaks out of the grid range and keeps going, the EA accumulates losing positions on one side that it never planned to close, and unrealised loss compounds fast. A grid’s headline win rate can look superb for months and then surrender a large share of the account in a single directional run. Survival depends entirely on grid width, step size, lot scaling, and — above all — enough free margin to carry the full ladder.

When evaluating a grid EA on this catalogue:

1. Worst-case open exposure — how many levels can fill at once, and can the account margin them?
2. Behaviour in a trend — look specifically at the backtest’s trending months, not the calm ones.
3. Lot scaling — fixed lots are far safer than any martingale-style increase.
4. Minimum capital — grids need $3,000-$10,000 to absorb multi-level drawdown without a margin call.