Do You Trade the "Basket?"

I've been looking for info on this subject since Enivid posted about the USD Index last year.. I just didn't know what it was called. Well, I was slummin' in so other forums and found "Basket Trading."

I can say this, it's not the easiest thing to learn, especially off forum posts. However, it IS doable! I've just finished my first basket trade with $952 banked, an overnighter.

If you're interested, you can Google "Forex Basket Trading Strategies." There are two concepts floating around. I went with the "T101" method. So, I've got the 8-pair setup down. Today, I work on learning the 14-pair setup.

Basket trading is not for newbies. Why? Experience shows when you trade the basket. It's a required piece of the puzzle. Setting up the basket was the hard part for me.

If you've been around for a while (and know your MT4), check it out.
 
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This is how I Trade it.

I've only been into this for three days now so I'm far from an expert. Google other threads online if you need to know more, "Basket Trading."

This setup is step specific and I'm using it:

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).

3. Click on 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 I use in the T101 are GBPUSD,EURUSD,AUDUSD,NZDUSD,GBPJPY, EURJPY,AUDJPY & NZDJPY. For 14-pr, I use GBPUSD,CADJPY,EURGBP,AUDUSD,GBPCHF,USDJPY,CHFJPY,EURUSD,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, let it run all day/night. And, NO, there is no SL or TP used.

Of the files below, the first three go in experts/indicators and the rest into experts/scripts. There is an EA available for this but I don't use it nor know anything about it. It's available online.
 
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Here's a look at what's going on at the moment with my basket. I'm trying out a slight change. There are 6 pair in the basket when shot taken. Basket in play for approx. 2 hrs now. Below is what it's done so far and it's still going. What's your entry? Yellow under red/blue under red for Sell. Yellow/Blue over red = Buy.
 
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I have learned a better way to attack baskets. I gives a better graphical presentation about what's going on, plus you'll have the ability to preset your pairs for specialty trades, i.e., the JPY "Sync."

There's a pix of a new basket I now have in play below.

Notice how you can track the progress of your basket pairs by the grn/red listing. Along with other options.

I'll put a zip together this afternoon or tomorrow for you along with setup instructions. Remember also, I always take the simple approach. Moving indys and such around are things you should already know so I'll gloss over such things, being specific where needed. I've got it down to a basic 3-step setup.
 
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OK,

How do you set this puppy up?

First Prelim. Step:

Find the "Basketv8" file and open it in MetaEditor. Scroll down until you come across the pairs being listed. Change each "case" to the pairs you specifically want to trade. You'd better write them down for later reference. Once all cases are to your satisfaction, Click "Compile." It should say Zero errors. Do the exact same thing with Basket Trader v2.3 in MetaEditor, closing out the same way.

Now, disperse the files to their folders:

Expert Advisors:
T101 Basket Trader V2.3

Custom Indicators:
Basketv8
P4L Candle Time
PPO
Sidus v3
Stoch Candles

Scripts:
AEMERGENCY Close All
CloseAll

Step One:

Open "ERUJPY" or "GBPJPY" chart on the TF you intend to use as your trade site. Now drag/drop "Basketv8 indi onto that chart. Select the number of pairs to be used and the TF you're using (in minutes).

Now, click on your MT4 "File" button and click "offline chart." [ADD: When Dialog box opens, scroll down to "BSKT#H1" and double click it.] Your trading chart will now turn into a "combined" chart.


Step Two:

To your combined chart, drag/drop the EA "T101 Basket Trader V2.3. When the Dialogue box opens, you need to change all the first "trues" to "false" about Engine use. Also, scroll on down and set your lot sizes. Click OK.


Step Three:

Here's where it turns fun. Add the following Indies: P4L Candle Time, PPO, Sidus and Stoch Candles. Extend to your liking.

To open your basket, decide if it will be a BUY or SELL basket. Find the OPEN BASKET/CLOSE BASKET words and double click on your choice. Ah, nothing happened! Now left click hold/drag to center. Click yes at the response and your pairs will log in with their trades. You're up and running!


Additional Info: Like all orders, opening a basket causes a lot of bounce so expect to give your basket an hour to calm down. As each pair crosses from negative to positive, it'll change from red to green. Pairs that insist on no profit can be exited the normal MT4 fashion.

When you're finished with the basket, just close all trades. There's an script to use but sometimes it balks. Just close out.

That's Basket Trading #2! Enjoy!
 
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Some are having problems setting peramaters for the T101 Basket Trader,2.3. Here's something to help.. To manually trade the basket, All "trues" in the "TRADE/TREND DETECTION" section must be set to "false." I believe there are 4-5 to be changed. Also, this is where you set your trade lot size.

That's all you have to change.
 
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MAYZUS.Neeraj

Active Trader
Mar 18, 2013
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Cyprus
BTW, JPY is under pressure. JPY value is declining and price is rising. Good news for the basket (case) 7 group. All XXXJPY. Should be profitable for BUY baskets this week. In your setup, NumPairs will be "7."
It is true that a lot of action is going in the JPY pairs and we need to Enter the trades at the right times :)
 
When my basket displays all blue in it's pairs, entry isn't a question. I have an active 7-pr JPY basket running right now that has all pairs green and "in the money." The odd part today is that when I opened the basket, no bars were displayed. They seem pasted up against the left wall. I opened anyway. No chart needed to view, just my P/L Line.
 
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This is way too easy. Let me explain. I rise everyday just before "first light." An old Vietnam jungle habit. Anyway, before anything else, I pull up my 1A Combo Ultimate 3.1 indi. I check the lower right corner, looking at the strength of "groups, EUR,JPY or USD. Then, I bring up a basket with those pairs to be traded.

Setup complete, I now look at the pairs to see they're all directionally aligned. Then, I pull the trigger. This is in Demo.

After about 30-45 minutes, giving the pairs time to get over their bounce, I wait a bit longer to see if all pairs move into profit. When that occurs, I then open the exact same basket on my Live acct. From this point on, I leave it alone, checking it about every hour via my smartphone.

Normally, around 3:30pm, GMT-6, the market loses steam and I close out. If I said what I make, some loser would claim I'm bragging. No, just working a method I've proven to myself works. Effortlessly, too, I might add.
 

mabra

Trader
Feb 23, 2013
21
0
12
Very good step by step declaration!!

Hello ezrydn,

Thank you very much for your detailed declarations of your Basket trading method.

I have heard a lot of good words about this method but never tried it by myself.

To learn it is a little hard for me due to my bad English (I am German). Would you be willing to support me a little, if I set up the method on a demo account?

That would be very nice.

Greetings
mabra
 
One question about basket trading keeps rearing it's head. "How do I figure entry and exit?" Think about the question for a moment.

Most of you are "single-pair" traders, right? You have one chart to decipher. As a basket trader, you don't have that ability. Do you honestly see yourself figuring the entry and exit of fourteen pair, at the same time?! Of course not.

With basket trading, you go solely on price action and indicators. Picking groups to trade is a trait you'll quickly acquire once you've master rapid setups.

My method? I use the 1A Custom Ultimate 3.1 indi to spot groupings and movement. I watch the pair groups marked "Strong" and "Weak." That points me initially to the trade. Next, I start my setup. I load "Basket8" which is already set internally with my pre-selected pairs. I get my "offline" chart and add "BasketTraderv2.3" to it. Now, I add my indis; P4L Candle Time, PPO, sidus and Stoch Candles. That's it! Nothing else.

Once setup, I look at the red/yellow lines in the candles. Are they going my direction and do I have space between them? On the PPO indi, same applies. Is the red/blue going my direction and is the spacing there? If both are "YES," I pull the trigger on the basket. That's how I enter.

Exiting is simple enough. When the 4 lines mentioned above come in contact with each other, either/or, I'm out. The PPO indi will probably be your prime exit indi.

Working with a multi-pair offline chart is not like single pair charting. It's a "knack" you'll pick up quickly, once you get started. You will probably settle on other indis. Whatever works for you is what matters.

A couple of things to keep in mind. Opening a 14-pr basket will set off a lot of order open bounce. Give it time to settle down. Secondly, you'll probably trade on the H1 TF. In one hour, price can and will make large swings. You have to sit through it. How much will you sit through? That's a personal choice. I've gone -$500 over an hour only to hit +$1500 30 min later. Baskets are that way.

I hope that helps.
 

mabra

Trader
Feb 23, 2013
21
0
12
Hello ezrydn,

Thank you for your reply and your offer for supporting me.

I am retired too but need to make money yet for a living because I have been self employed since very long years and earned not enough money with that. So I am hoping to lean successful Forex trading to get some extra money.

Tomorrow I will set up my first basket on a demo and take a look how it works.

Kind regards

Mabra
 
I just basket up the "flavor of the Day." Yesterday, it was JPY. Today, it's EUR. Tomorrow, it may be CAD. Wait, tomorrow's Saturday. LOL Yesterday's JPY basket closed with $2600 profit. Plus, I normally have my basket picked, loaded and running by 0700 CST (GMT-6). Then, I let it run all day or until turnaround.
 
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Had a fun conversation with a FOREX guy today. He called to follow up on something I purchased last year, and no longer use. And, he was a rep for Mr. Big Name. First question out of his mouth was "What type trader am I." LMAO He wasn't ready for my answer. Then, I "shorted him to ground." I told him I was a "Basket Trader." Poor guy didn't have a clue. LOL

So, I turned him onto basket trading. Got his email addy and sent him the files and pointed him to the thread I learned it from. Now, we'll see if he gets it.

It's a slow rise but the 7-pr JPY basket is growing and growing. It's estimated that the JPY will reach 100 before it ends.
 

mabra

Trader
Feb 23, 2013
21
0
12
Had a fun conversation with a FOREX guy today. He called to follow up on something I purchased last year, and no longer use. And, he was a rep for Mr. Big Name. First question out of his mouth was "What type trader am I." LMAO He wasn't ready for my answer. Then, I "shorted him to ground." I told him I was a "Basket Trader." Poor guy didn't have a clue. LOL

So, I turned him onto basket trading. Got his email addy and sent him the files and pointed him to the thread I learned it from. Now, we'll see if he gets it.

It's a slow rise but the 7-pr JPY basket is growing and growing. It's estimated that the JPY will reach 100 before it ends.
Hello ezrydn,

What do you mean with "7-pr JPY basket. I think, in a basket are a lot of currenices. Why do you name it JPY-basket?

Greetings

mabra