This is an example of a short term GTM forex trading technique trade showing the effect of a trade that goes the wrong way at first and then goes in the intended direction. It also show the magic of the Multiplier Forex trading technique effect.
Reasons for the GTM Forex trades :
The EURJPY showed some nice sell signals on most 4 hour charts. Especially the 4 Moving Average crossover. Using the GTM Forex Trading Technique you can enter at any reasonable time because if you get it wrong you will still make gains – see below.
Result:
The transaction went against the intended direction at first about 40 pips and then slowly worked its way down to a point of being +50 pips. A good example of GTM Forex trades
Under conventional trading the gain would only be 50 pips. Using the trend multiplier forex trading technique the gain was infact over 150 pips.
Alex, could you please let me know on the 4hr Chart with the RSI, what MA do you have on that, and with the multiplies what is your gap, as I am using 4, 8, 12 etc and mine look different to yours. And can we know set a target for the Grid Trader, or did you just shut it off when it have gone the 50 pips. I like this EA better than the DIAD, but both are very useful for different Scenarios, I just have to remember to use them. An email out on possible trades would be nice also. but much appreciate all your efforts.
Alex the maths just do not add up with the GTM..
You say conventional trading would have gained 50 pips.. OK so say I have $5000 in my account, I sell risking 1% of my bank on a 1:1 risk reward. So I risk $50 at a 50 pip stop so just for arguments sake say a pip is worth $1.
If I use GTM I am not going to be risking $1 per trade much more like $0.10 or if I’m brave $0.20 per trade.. So a 150 pip gain would net me $15 or if I’m brave $30 whereas conventional trades would have netted me $50 and without risking more than 1% of my bank whereas GTM would have risked a hell of a lot more and netted a lot less..
Say I went mad and place GTM at $1 per trade, looking at your chart it barely broke stride going against you 40 pips, say that carried on to 50 or more, conventional trade loss $50, GTM loss at $150 and if it continued a hell of a lot more.
I just cannot see the benefit of GTM. I have GTM and have tested it extensively but the reward is just so small compared to the huge risk.
Yes you are right the risk is higher but then again so is the gain.
Assuming $1 = 1 pip
Conventional trading would have risked $50 (size of the stop loss required to not be stopped out at -40 pips) and made $50 when the target of +50 was reached. 1:1 return on risk.
With the GTM the highest risk was -10-20-30-40 = – $ 100 When the transaction went – 40 pips and made +$200 when it hit + 50 pips due to the multiplier (20 successful transactions were cashed in as shown in the account, in this example) return on risk 2:1 Double the return on risk in this examples.
So the benefit is the multiplier that allows the same transaction to be cashed in over and over again.
I agree with you the risk is infact much bigger with the GTM in a trending market. The GTM is very dangerous market in strongly trending market when the multiplier does not have time to cash in the same transaction over and over again. You will find that gaps of over 110 help in this area in the long run.
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