Hi limevanilla, as a good example you can try the following Setup on GBPUSD H1. You can test trough the year 2022 and it is running smooth making roughly 10% of your capital per month and has a low drawdown. In the time from 19.09.-21.10.22 you'll see a huge drawdown, which is for most setups (except scalpers) a critical point. Try this with and without hedge in the backtester and view the results. With the hedge you have roughly 20% drawdown and this is the fixed maximum. Without hedge your account is blown. This is the reason why most traders loose all capital even when the strategy runs well for months. No grid trading strategy is safe, it works only until (the day of justice) is coming. In times like now, this can happen more and more often.
To recover this DD you have to wait for a entry point where the market recover. This is more likely after 1-2 days when the market is exhausted. Then you sell the hedge in profit, wait until the price go up and place a new hedge for security (pending order). You need roughly 70pips to have a full recovery of your losses or when the trend is clear place an order with the trend to get a faster recovery. You must do this manually. This is the safest way. There are hundreds of videos on youtube how to trade manually, have a look at the channel from Nick Shawn. You can learn some basic techniques.
For the full strategy you select different pairs. Make sure that the chart doesn't look the same otherwise you have a problem on all pairs the same time. Then you need to know the maximun drawdown of you pairs. You can run your grid into hedge and stop the backtester, note the drawdown that you see in the report. Sum all DD from your pairs and make sure that ths is not more than 80% in total. This would be the case if all pairs go in drawdown at the same time what is almost impossible, but you never know.
If you are able to run 4 of those pairs in one account and you get 40% increase per month you double your balance after 2 months, 7.5x after 6 months, 56x after one year!