A grid trading EA places multiple buy and sell orders at fixed intervals above and below a set price. It profits when price oscillates within a range, closing trades as they hit take profit levels.

Yes, grid trading carries high risk. During strong trends, the EA opens multiple losing positions that can cause significant drawdown. Always use proper lot sizing and set a maximum number of grid levels.

Grid trading opens orders at fixed price levels regardless of previous trades. Martingale doubles lot size after each loss. Many grid EAs combine both, increasing risk substantially.

Range-bound pairs like AUDCAD, AUDNZD, and EURCHF work well for grids due to their tendency to oscillate. Avoid trending pairs like USDJPY or during high-impact news events.

Grid spacing depends on the pair's volatility. For major forex pairs, 20-50 pips is common. For gold (XAUUSD), 200-500 points. Wider spacing = fewer trades but safer; tighter spacing = more trades but higher risk.