World Clock (Trader Guide)

Wednesday, January 6, 2010

Forex Basket Trading System (T101)

And here is his trading system is named
“Simple Trading Method (Basket Trading Strategy)”

System is based on price action, indicator free trading and it is done manually.
My role here is only a person Introducing this system to you in hope that you can use this system for reference in process of developing your own trading system.

This system is based on the fluctuation of prices, do not use the forecast, the system is done manually, in other words to have to transactions rather than using automated programs to achieve good performance .
Role of I (happylife) here are only introducing this system to you to help you refer to in building a system of your own.

But now we will talk about Basket Trading System:

I (Pipscorer) how to use this transaction is 3 months, after the collected data by 2 years to observe changes of progressive and start applying to the actual transactions, results is also quite good. This system is quite simple and based entirely on changes in price - price action, not using forecasting tools and manual transactions (that is from the trade instead of auto trade).

You will first need to open a trade account try (predict account - Account Indicator - IA) and make sure that your broker “must have” Funding the following:

Most brokers have the following Pairs.
1. GBPUSD 8. CADJPY
2. EURGBP 9. AUDUSD
3. GBPCHF 10. USDJPY
4. CHFJPY 11. EURUSD
5. AUDJPY 12. EURCHF
6. EURJPY 13. GBPJPY
7. USDCHF 14 USDCAD

If you are using the IBFX Platform below are your pairs to Hedge:
1. GBPUSD 8. EURUSD
2. EURGBP 9. USDJPY
3. GBPJPY 10. AUDUSD
4. USDCHF 11. NZDJPY
5. NZDUSD 12. GBPCHF
6. AUDJPY 13. CHFJPY
7. EURJPY 14 EURCHF

7 pairs of first group 1, 7 pairs following a group 2. The pair of variables when this will hedge each other (except for mutual compensation, because it will change back together). Group 1 will short - sell, and then Group 2 will LONG - buy. No set target or stoploss. At the bottom of the script that you can use to place orders at the same time to purchase 14 pairs of the same money at 1 to ensure time for radical open at the same time. Then click on the column in the profit of the order, to rearrange the pairs, then the food will pair are at the top and the holes will pair are at the bottom, or vice versa. At first the pair arranged quite intricate but after 1-2 days, the pair will arrange the right order of it. The pair will be long in the bottom end, the short will pair in the above, or vice versa. The process of waiting for this just waiting to shine deposition of mud under that.

After the pair were on location, in other words it really has to distinguish the 2 groups separately. (you can see pictures to know more). Then, if 1 pair is overrun border between the 2 pairs, which is progressive, we need attention. Here are 2 ways to trade:
1 / Trade any pair of the border pass between the 2 groups.
2 / Trade all 14 pairs. Buy or sell the same 14 pairs.

We should have 1 account other individual to perform the actual transaction. If progressive long overrun border, you can place orders to buy the 2 Funding beyond boundaries (1 pair for the switch down while the pair 1 below will have to move up). Setting the target depends on you, for me I use the EA Profit Protection to implement monitoring of order transactions.

Remember do not touch on the demo account because this account will be maintained as a tool of your case. Let this account to run and check the pair have overcome any money from the border, you can perform transactions.

Below, you can see the USDCAD pair overrun border, I made the transaction and earn some PIP from it. At the same time pair GBPUSD also be pushed down and be done buying transactions.

Will much about how the transaction we will discover more.
I hope that I explained how the transaction is fairly clear. Wish you luck.
Trader101

Note:
1) this method is manual .. Again manual … Indicator is fine.
2) I am trying to avoid any EA being made out of this system, indicators are welcome.
3) To those who will benefit from this method, my only request is to give TO CREDIT WHERE CREDIT is due this is given unselfishly free. Pipscorer/Trader10

To know more about Julius (Trader101) Please refer to the following links:
http://www.forexfactory.com/showthread.php?t=14595
http://www.forex-tsd.com/suggestions-trading-systems/16466-basket-trading-system-t101-system.html