Articles for traiders
08/24/2018 05:11:44 pm

What is a profitable network of orders?

What is a profitable network of orders?

The order network is the principle of trading, in which you prepare to open several orders in advance. Orders can be opened both against a trend, and on a trend, as well as in lateral movement. The volume of orders can go on increase, decrease or can remain invariable for each warrant. The purpose of such a trade can be different, it can be a reduction of losses, it can be building up a position on the trend to extract the maximum profit.

Successful trading on Forex using the order network requires you to clearly understand the sequence of actions, knowledge and understanding of simple mathematics.

When trading networks, the following data will be mandatory for calculation:

  • Step grid. It indicates the distance between the orders, and it is from this in many respects the result depends. You can use both strategies with a big or small step, aimed at making a profit in the long run. It is important to note that the grid spacing can be either static static and have an equal number of points between orders, and a dynamic pitch at which the distance between the orders is not the same.
  • Calculation of lots - this is a preliminary distribution of the load on the deposit, and a preliminary calculation of the funds required to pledge and open the entire planned network of orders. It is important to note that the more you open orders with large lots against the trend, the more risky your trade.
  • The price of closing all or part of the grid. It is important for you to preliminarily calculate all possible scenarios for the development of events on the chart. Having carried out mathematical calculations, you can calculate the prices and values at which closing a portion of profitable orders will block the rest of orders that give a loss.

The success in the trade networks of orders

You are a trader who professionally uses the network of warrants in his trade, as a spider puts his web on the chart in anticipation of his prey - profits. Spreading his spider web all the same where the wind will blow, prey will be captured and absorbed, so to you, working with a grid of orders, anyway where the price goes, the profit will be extracted in any case.

Advantages and disadvantages of working with the order networks

The trading algorithm for the order grid has a number of positive properties, such as:

  • The ability to close a loss-making position with a profit, using simple averaging of orders.
  • The ability to dial a position in anticipation of a reversal and have a significant amount at the beginning of the trend.
  • Disadvantages when working with networks of orders as well as with other strategies of work, there are two shortcomings, and they are significant:
  • Great risk in case the price moves against a large network of orders.
  • Networking requires a large deposit

In order to avoid greater risks, you must understand the principles of working with the order networks. Correctly apply the network, calculate prices or signals from the trading strategy, correctly calculate trading lots.

Examples trades with using networks

The principle of trading with network of orders you can use in any trading strategy, with any financial instruments, forex currency, crypto currency, bitcoin, metals, stocks. For the use of networks, it does not matter what experience you have in trading, no matter how old you are or what gender you are. You just take and apply the principles of network trading.

Consider an example of trading using multiple orders.Trading order networks as a spider

In a short period of time, an upward trend is observed as a result of the news on the number of employees in the United States. The optimal solution is to continue buying the currency in the direction of growth. In doing so, you calculate the prices for building a network in case the price goes against you and, in case the upward trend intensifies.

Scenario trend against you:

You expected a price increase and entered the market with an order to buy lot 1, previously took into account the moment that the price can go against you, for this you calculated the prices for opening on a static network of orders with the same step of 60 points between each order. The price went against you and at a distance of 60 points you again bought lot 1. Now that to close both orders in 0 the price should increase by 30 points. The mathematical calculation is as follows: 1. The order is 30 points, the second order is +30 points, the lots are the same amount of profit is 0. If the price continues to grow, then with each new growth point you will receive 2 profit points from both orders.

Scenario Trend Your Friend:

The price continued to move in the direction of growth by 60 points. You make a decision to "Share" on the trend and open one more order to buy lot 1. Now with each point of growth you will have a profit of 60 points from the first order and another two points of profit from the moment you opened the second order. In this case, even if the price goes down against the trend by 30 points, we will not get a loss.

Scenario caught the U-turn:

You bought lot 1 in anticipation of a sharp and big price increase, but the price has characteristically dropped 50 points. Analyzing the graph, you understand and see that this price failure "False" you enter the market in the second order lot1. After the price goes out of the "false" breakdown and fulfills the initial expectations of a large and sharp increase by 200 points, you get 50 points by 1 lot and another 150 points with two orders totaling 300 + 50 totaling 350 points by lot 1.

This situation is constantly accompanied by raiders using the principle of trading with a network of orders.

The order networks give the maximum profit at work on a trend, normal profit at work in a flute - lateral movement, the minimum profit at trade against a trend.

Forex advisors for trading order networks

The correct calculation of lots is the first step to success

Lots can be calculated according to different criteria. It is very important to correctly calculate the volume for entering the market, you should understand that having a total volume in the market of 100 lots you will receive 100 dollars of profit in case the price goes to your side and minus $ 100 if the price goes against you.

Simple calculation of lots:

  • Without increase, lots of all orders are the same 1,1,1,1,1,1,1,1,1,1
  • Consecutive increase to the minimum lot 1, 2,3,4,5,6,7,8,9
  • Increase in the Martingale system where each subsequent lot is multiplied by two 1,2,4,8,16,32
  • Any other increase, for example according to the Fibo principle, which is programmed in the automatic trading strategy VR Smart Grid 1,1,2,3,5,8,13,21,34

Now at this stage you know enough to handle the network of warrants skillfully, test and fix your knowledge on  demo account.

Further more! We have considered in detail the principles of working with a large number of orders, now let us facilitate our work and understanding. Modern technologies have reached such a level that in the automatic mode of the program, advisers can:

  • Calculate prices for the order network
  • Calculate lots
  • Calculate zero prices
  • Calculate the maximum profit
  • Check all orders, even if their 100500
  • Calculate prices without loss
  • Eliminate the psychological burden
  • Significantly reduce risks

To help you with additional material:

I have written video lessons and laid out on video hosting YouTube recommend that you look, a few lessons of the total duration of 1 hour, will disclose to you the most common methods of working networks their properties, risks and scenarios. I assure you will not regret it! Watch start here.

I have also developed a special indicator for MetaTrader, called VR Calculate Martingale. With this indicator you can calculate any networks, any scenarios, any prices, lots and other information necessary in trade. You can calculate the complete network for bitcoin, for stocks, for metals. 

The best automatic algorithm for trading the networks of orders, both in the trend and against it, is the advisor VR Smart Grid, another name for the same advisor VR Setka A. Until 2018, the adviser was called VR Setka A, but time goes by and many foreign users did not understand this name , as well as the adviser passed the highest degree of verification in the mql5 market and got a new name understandable to everybody  VR Smart Grid.

VR Smart Grid has a huge list of advantages

  • Automatic and manual operation mode
  • Automatic calculation of lots
  • Work 24/7
  • Complex algorithm for calculating the signal to the input
  • Calculation of the average price

And much more, it's easier to see once than to read a hundred times))))

Test the advisor VR Smart Grid you can for free. It's enough to download it, choose a broker and start trading.


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