USD/CHF perfectly aligned for sustainable grid trading
USD/CHF has had a nice bullish short term ride and I believe it will, in general, continue until it reaches a firm resistance zone of 1.02ish, first established in November, 2014. This zone has been tested several times, so its a good selling area. Overall support is roughly at 0.87ish and has been holding and tested since May, 2014. The really is an exceptional set up that looks like it will continue for a while.
When using a traditional grid trading technique, settng an upper boundary of $1.03 and a lower boundary of $0.86, yielding a spread of 1700 pips, gives a very nice grid structure with 17 pips between each level, with a maximum of 100 levels. Using automated methods would provide a very consistent flow of profits. The fact that the price action is so close to the lower boundary means profitability will occur in a shorter time frame as saturation will occur quicker. For manual trading, the boundaries could easily be adjusted to a level where a few minutes a day could be used to maintain the grid while still being quite profitable, since this is based upon the daily chart.
Another technique would be to use a floating grid that encompases a stoploss such that the grid is more dymanic to the market, while providing consistency in both budget and profitability (see signature for more details). A floating grid will provide a better level of analysis as well, since it manages less positions and has a stronger and more beneficial rule set.
Overall, regardless of trading technique, the USD/CHF market is poised to be profitable for a while, with a significant histocical record of being reliable.
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