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Now that you know the Grid trading basics you are ready to learn the main rule of hedged grid trading:

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YOU SHOULD ALWAYS BE IN A POSITION TO CASH IN POSITIVELY ON ANY MOVE (Up or Down) TO THE NEXT GRID LINES (LEVELS).

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This means that you should always have a buy or sell in place that can be cashed in positively when ever the price reaches a new gridline. When the price is at new grid level we don’t know where the price will go next, so we have to have a buy that can be cashed in if the price goes up. At the same time we need a sell that can be cashed in if the price goes down.

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You will see how this rule is applied in examples that follow. We have already seen the application of this in example 1 in Module 2..

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QUESTIONS OR COMMENTS REGARDING THIS MODULE

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