Trading the "Basket"

[ezrydn]

I got interested in this when I ran across a mention of it months ago. However, there was nothing available, anywhere. Last month, I was on a forum and found it! Info was splashed over 58 pages of posts. It wasn't an easy scenario to be followed. However, I saw the opportunity and went for it, applying what I read.

First off, you do NOT have to understand the "why" of baskets, only the "how." I have boiled down the setups to 3-5 steps each. I will start with the most simple basket setup first. Learn it. It's easy. Learning it will make the more graphical setup easier.

I'll get the simple method posted this afternoon. I know, it's Friday. Loss of signal occurs in about 4 hours. However, you'll be ready for Monday. I'll be here all weekend to help with questions. You've only thought about single pairs up til now. You need to start thinking in "multiple" pairs. Which pairs follow each other or a commodity we have access to? With the simple method, you'll be locked into trading 8 or 14 pair. The better method will allow easier changes. But, first things first.

 

[ezrydn]

Ready for Baskets? Good.

Here's the simple "How To" with everything you need below:

HOW TO: Simple Version

Be sure to follow each step exactly:

1. Open two GBPJPY frames, one in TF M30 and one in TF H1.

2. To both, add the "T101_Indy_PriceHistory_v3-dnk.mq4" file.
NOTE: When dialogue window opens, you can change between 8 an 14 pair by changing Basket number. And, in "Symbols," you enter your 8/14 pr. by name (use CAPS), i.e., GBPJPY,EURUSD), comma sep.

3. Click on MT4 File->Open Offline. At dropdown menu, double click ##T101, both the M30 and H1. This will give you another set of composite charts. These charts are a combo with all pairs summed.

Your combined H1 chart will be your "working" chart. It's titled "##T101." To this chart, add "StochCandles_Don" and "sidus_V3_email" indis.

2ND NOTE: All open frames MUST remain open throughout the trade!

Now, how to open and close orders. I have included two 8-pr open/close and two 14-pr open/close scripts plus an EMERGENCY Close all script.

HOW I use it:

Again, there are a multitude of ways to trade this. I like it simple. There are 8 pr pre-loaded into the T101. They are: GBPUSD,EURUSD,AUDUSD,NZDUSD,GBPJPY, EURJPY,AUDJPY & NZDJPY. For 14-pr, I use GBPUSD,CADJPY,EURGBP,AUDUSD,GBPCHF,USDJPY,CHFJPY,E URUSD,AUDJPY,EURCHF,EURJPY,GBPJPY,USDCHF,USDCAD.

Look at your H1 chart. Red or Green? That's the direction of your trade. Double click on an Open script for that number pair, set your lot size and watch them fill in.

Some will go into negative profit on you. It's best to wait about an hour for all to settle in then click on "profit" on your MT4 till all negatives are at the bottom. Now, simply close that trade, standard method, and get rid of draw down.

As a suggestion, since you're in Demo, is, let it run all for a while. Learn how the basket acts. And, NO, there is no SL or TP used.

 

[ezrydn]

If you're familiar with the use of MetaEditor, you can use it to change the pairs to suit your desires in Basket8. This way, you'll call specific case numbers of your required pairs. You'll be doing this in the later "graphical" setup. It truly does make it easier to use. Just be sure of two things: Keep a written copy of which pairs are in which cases and don't forget to click "Compile" before you exit MetaEditor, or you lose your changes. To change entries, find the cases and use backspace to set pairs inside quotes.

My suggestion is to build your cases with with compatibility of pairs or specific trade needs. Example: My Case 6 holds the six XXXJPY pairs,minus the GBPJPY. I know that the JPYs can sync up at times and move together (a great trade to catch) so Case 6 is ready to be triggered. Use this mindset as you construct your cases.

Yes, there's new things, terminology et all when it comes to baskets. Most confusion rises from use of an offline chart to trade with. Before you ask, I don't know. I'm your typical "monkey see, monkey do." LOL If something works, I don't need to know "why."

 

[ezrydn]

Something you can do with basket trading that you can't do with single-pair trading. I setup a 7-pair JPY trade yesterday. Only problem was that NO BAR CHART showed. It was plastered up against the left wall.

However, all the info I really needed WAS displayed, so I pulled the trigger. This was the outcome.

 

[NVP]

hey dude .....is this Dreamliners FF "basket trading 101" or someone elses ?

sounds interesting
N

 

[NVP]

Something you can do with basket trading that you can't do with single-pair trading. I setup a 7-pair JPY trade yesterday. Only problem was that NO BAR CHART showed. It was plastered up against the left wall.

However, all the info I really needed WAS displayed, so I pulled the trigger. This was the outcome.

so you sold yen ?....N

 

[ezrydn]

NVP,

I'm not an autobiographer. I haven't a clue who's idea this is. But I know it works fantastically. I have set my "cases" up specifically for certain trades. All JPYs are in my "Case7." It's a "preset" for me. Since you have 14 cases, it's your choice what to fill each with. There's an EA available but I don't use it.

 

[swandro]

hey dude .....is this Dreamliners FF "basket trading 101" or someone elses ?

sounds interesting
N

He is using the T101 basket trading system as pioneered on FF.

 

[ezrydn]

Maybe "as pioneered" but not the last word. T101 trading is evolving, even today. If you've tried to follow forum threads, you know what a headache it is to figure out baskets. Those that KNOW are short-fused with the masses. I've learned it and simplified it. Shared my idea with others that caught on quickly. Therefore, seeing it take easily, I decided to share it.

Looking at T101 today, it's a creature developed by many people, not just one. As it's a great working model, my question is "Why is my thread the first here?" Is there a reason to keep it secret? If you knew about it before, why didn't you share it here? Just wonderin'.

 

[Brumby]

Looking at T101 today, it's a creature developed by many people, not just one. As it's a great working model, my question is "Why is my thread the first here?" Is there a reason to keep it secret? If you knew about it before, why didn't you share it here? Just wonderin'.

In case it is not obvious to you, unlike the other Forum from which you picked this up from, EA's are not popular here. Just my observation.

 

[ezrydn]

In case it is not obvious to you, unlike the other Forum from which you picked this up from, EA's are not popular here. Just my observation.

In case it's not obvious to you, Brumby, I have made NO mention of using a robot. I don't use them. Oh, I use the 1A Combo Ultimate 3.1 indi that resides in the EA folder but I don't see it as such. Basket Trader v2.3 resides there also.

Possibly, you see anything that trades more than one pair as "auto trading." I don't. As long as the actual trade experience decisions are being made by me and not someone's software, I'm trading manually.

Oh, I could just open 6 pairs on individual charts. I began by doing just that. This way makes the same idea easier without the chart clutter.

So, pray tell. Point me to the post where I tout EAs.

 

[Brumby]

In case it's not obvious to you, Brumby, I have made NO mention of using a robot. I don't use them. Oh, I use the 1A Combo Ultimate 3.1 indi that resides in the EA folder but I don't see it as such. Basket Trader v2.3 resides there also.

Possibly, you see anything that trades more than one pair as "auto trading." I don't. As long as the actual trade experience decisions are being made by me and not someone's software, I'm trading manually.

Oh, I could just open 6 pairs on individual charts. I began by doing just that. This way makes the same idea easier without the chart clutter.

So, pray tell. Point me to the post where I tout EAs.

How you actually execute it is irrelevant in the conversation. The point is and remains that EA centric stuff just don't generate the level of interest here as compared to the Forum that you picked this up from. How do I know? Just from the traffic. Isn't it obvious?

If you want to share the pros and cons of basket trading, the selection process of correlated pairs, the degree of correlation, the size of the basket on risk distribution, position sizing and money management - that might generate some interest.

 

[ezrydn]

Brumby,

I'm no guru. I don't get into the "why's" of stuff. I offer info which can be taken or not. I, unlike others, do not try to do others thinking for them. It's just "Here it is. Try it. If you like it, fine. If not, that's ok, too." Being an elitist is not my drive. Your concerns are not necessarily my concerns.

I say, allow the members to decide for themselves.

 

[NVP]

so.......is there an instruction book ?...........i'm a beginner to trading

and whats correlation ?

N

 

[Brumby]

Brumby,

I'm no guru. I don't get into the "why's" of stuff. I offer info which can be taken or not. I, unlike others, do not try to do others thinking for them. It's just "Here it is. Try it. If you like it, fine. If not, that's ok, too." Being an elitist is not my drive. Your concerns are not necessarily my concerns.

I say, allow the members to decide for themselves.

You are just being hyper sensitive. You asked the question why this basket trading system is not actively shared or discussed. I was just sharing my observation on the probable reason.

If members choose not to discuss what you shared - don't get upset over it. What members choose to discuss is obviously an independent decision. Isn't it obvious?

 

[ezrydn]

You are just being hyper sensitive. You asked the question why this basket trading system is not actively shared or discussed. I was just sharing my observation on the probable reason.

If members choose not to discuss what you shared - don't get upset over it. What members choose to discuss is obviously an independent decision. Isn't it obvious?

Typical liberal. Still building your position by adding to it. Whether one wants to use this technique is up to the individual. That's true. However, who introduced the negativity first? Me? LOL You asked me a specific question to which I gave you a specific answer. From that, you think I'm upset. THAT is truly funny.

I know there are pairs that will "sync" up and run. I know how to spot that syncing and/or the runs. The "whys" will have to come from someone else. Much of it I picked up after I got into basket trading. Baskets brought it into clearer view. And I put that new found knowledge into practice in a very profitable way.

I know I'm not the first to find it but I wanted to share it with my fellow traders. Plus, I've encountered my share of "naysayers." There's no threat there. The real "why" question is why do some seem to be intent in withholding education from others?

You can take it or leave it. It's your choice. I have mine and I'm happy with it. If someone want more, I'll help. If not, thanks for stopping by.

 

[ezrydn]

Well,

I'm through for the day.

 

[Brumby]

Typical liberal. Still building your position by adding to it. Whether one wants to use this technique is up to the individual. That's true. However, who introduced the negativity first? Me? LOL You asked me a specific question to which I gave you a specific answer. From that, you think I'm upset. THAT is truly funny.

Mate,

You are prolonging a conversation that should have ended long ago. The only point that I have made so far is offering an observation for the lack of interest in what you had shared. If you have an issue with it please offer something of substance to rebutt my observation. So far, all you can demonstrate is an inability to articulate anything of substance beyond injecting words like "liberal", "progressive" and 'elitist" in your references as if they carry weight.

 

[ezrydn]

Mate,

You are prolonging a conversation that should have ended long ago.

You're right. Conversation ended.

NVP,

Yes, there's a sort of manual. However, it doesn't cover the full setup procedure. I have mapped the procedure, making it simpler than slogging through 60 pages of posts like I had to. I've got two friends, newbie traders, who have learned and are using baskets on a daily basis. If you're having specific setup questions, let me know. I'll be happy to work with you.

 

[shellsnail]

I do manual basket trading on the 4H timeframe, simple trend following, with manual exits and blanket exit on friday 1600 NY time.

Works well for me. Basket trading definitely allows you to capture trends in the forex market very well because the underlying concept is let winners run and cut losers short which work well in trending environment like forex.