Forex Questions about Grid hedging

So the concept is simple:


You choose a reference point, for example London open. Then you place N buy stop orders above the reference point and N sell stop orders below the same reference point. The distance between the orders is fixed, for example every 10 pips. The DD or max loss is fixed regardless where the price goes.


Two questions come to mind:

1- What's wrong with the concept?
2- When to take profit?

Regards
Z

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