What Adaptive Grid Recycling is (a FOX research concept)
Status: a FOX Trading Capital research concept. It is being checked in the strategy tester and is neither an available commercial product nor a proven technology. Parameters are not disclosed.
The idea
An ordinary grid waits until the whole basket reaches a common target. While price oscillates inside the level range, individual positions pass through profit many times without locking it in. Adaptive Grid Recycling researches whether the profit of individual levels can be taken on such oscillations and those levels reopened ("recycling" a level) while keeping the basket's structure.
What should improve (hypothesis)
- Realised profit during a long oscillation, not only when the whole basket closes.
- Less dependence of the result on a single return of price to the basket's average price.
Risks and open questions
- Costs: every reopening is a spread, a commission and possibly a swap; on an expensive account the effect may vanish.
- A reopened level carries risk again if the move continues.
- The result is sensitive to the tester's tick model — it needs checking on real ticks and on a forward period.
How we check it
The MetaTrader 5 tester on real ticks, several years of history, a separate forward period, and a comparison with a baseline grid without recycling under the same risk limits. Until the check is complete, the concept is not used in public products.
The materials are for information only and are not investment advice. Leveraged trading carries a high risk of losing money.
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