This strategy is an automated trading system that uses a combination of grid trading and trend-following techniques to capture market opportunities efficiently. Here’s how it works:
Key Features: 1. Grid System: • It creates predefined price levels (grids) to execute buy (long) or sell (short) orders. • Grid levels can be static (fixed price intervals) or dynamic, based on volatility using the ATR (Average True Range) indicator. 2. Trend Detection: • It uses the Ichimoku Cloud, ADX (Average Directional Index), and Inverse Fisher RSI to determine the market’s direction (uptrend, downtrend, or sideways). • Based on these indicators, the strategy switches between Long Mode, Short Mode, or Neutral Mode. 3. Modes of Operation: • Neutral Mode: When the market is range-bound or lacks a clear trend, the strategy avoids unnecessary trades and waits for a breakout. • Long Mode: If the market is trending upward (price above Ichimoku cloud, ADX strong, and RSI positive), the strategy places buy orders at grid levels. • Short Mode: If the market is trending downward (price below Ichimoku cloud, ADX strong, and RSI negative), the strategy places sell orders at grid levels. 4. Risk Management: • Controls maximum risk per trade based on equity percentage. • Limits the number of open positions and ensures minimum position sizes. • Uses stop-loss, trailing stop, and take-profit levels calculated with ATR. 5. Volume Filtering: • Ensures trades are only executed when market volume is sufficiently high, avoiding low-liquidity conditions. 6. Partial Profit-Taking (Optional): • Allows taking partial profits at certain levels while letting the remaining position run for more gains.
Exit Conditions: • Positions are closed based on: • Reversal signals (e.g., trend direction changes). • ATR-based trailing stop or minimum profit targets. • Time-based exit after a specified number of bars. • Partial exits, if enabled.
Visualization: • The strategy plots key indicators, grid levels, and trigger prices on the chart. • It displays the current mode (Long, Short, or Neutral) and indicator values like ADX and RSI for better understanding.
Purpose:
The Dynamic Grid Trend Following System is designed to: • Capture both trending and range-bound market opportunities. • Minimize risks by adapting dynamically to market conditions. • Automate trading decisions for consistency and efficiency.
This strategy is ideal for traders looking for a systematic approach that combines advanced trend detection with robust risk managemen