Hi Mike,
I am trading EURGBP.
The grid distance = 1, max number of open positions = 8.
I currently have 8 positions tightly packed between 0.85673 and 0.85859. The current price is 0.85987, which is far from the top position. Therefore, the risk is very high for me. And, the trade is not taking place.
If I set the grid distance appropriately as a variable based on the volatility, I can maintain eight positions evenly during large price fluctuations, reducing risk and allowing frequent trades.
When a new position is entered, is it possible to make the grid distance change proportional to the price volatility?
If possible, can you tell me how?