Andrei Novichkov wrote a pretty good article the other day for the mql5 forum, Working with currency baskets in the Forex market......
that sort of trading has always appealed to me..... his words were well chosen, such as in the title, Working with currency baskets..... it is work.... a lot......
to be effective, it helps to have purpose built indicators and ea's to drill down on the currency of interest ..... you must be in sync with the currency itself but have the flexibility to avoid or trade the opposite way on a particular pair that does not follow the majority direction.....
a perfect example is the eurgbp in the video below..... if you were to sell the eur basket during the time mentioned, you would still have wanted to buy the eurgbp, instead of selling...... or avoid trading it altogether......
usually if the jpy is strong, it's strong against all..... or if the aud is weak, it's weak against all..... and so on...... there will be exceptions and you must be flexible in those cases......
be aware to the combined spread you must overcome..... be aware of the combined margin require..... be aware of the swap impact....... but by all means, be in sync.....
i'll post some examples later...... this video was from awhile back but still applies......h
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that sort of trading has always appealed to me..... his words were well chosen, such as in the title, Working with currency baskets..... it is work.... a lot......
to be effective, it helps to have purpose built indicators and ea's to drill down on the currency of interest ..... you must be in sync with the currency itself but have the flexibility to avoid or trade the opposite way on a particular pair that does not follow the majority direction.....
a perfect example is the eurgbp in the video below..... if you were to sell the eur basket during the time mentioned, you would still have wanted to buy the eurgbp, instead of selling...... or avoid trading it altogether......
usually if the jpy is strong, it's strong against all..... or if the aud is weak, it's weak against all..... and so on...... there will be exceptions and you must be flexible in those cases......
be aware to the combined spread you must overcome..... be aware of the combined margin require..... be aware of the swap impact....... but by all means, be in sync.....
i'll post some examples later...... this video was from awhile back but still applies......h
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