Basket Trading BALUDA'S CSS Crossovers

[TraderJoeForex]

Just so I understand it right: Is the idea that it must point up for it to be good?
Can pointing down be a valid option too?
Depending on how to read it it could just as well be that a flat curve is bad but going up or down is good.
I assume it is for us to find out but do any of you have any previous experience on this indicator?

When the global market trend line is pointing up then the average based on all the pairs selected is trending more than ranging... so any trend based system (like the way we are using CSS here) has a better chance of doing better when the whole market is pushing this way.

Visa Versa for counter trend or other contrarian strategies where you would want the line pointing down showing the market is ranging more than trending.

For us here we want the line pointing up i.e. delta to be +ve for sure. Open baskets will have increasing drawdown when the line is pointing down.

The question is how do we define the turn .. i.e. what is the best timeframe to observe, how many candles do we look back and what is the minimum delta that is safe for us to jump back in.

Also whether it is better to cut a whole basket if the Global trend turns against or hold and just stop adding until it turns back. Essentially this indicator shows the whole market cycle.. it is certainly very interesting to watch

[Haggadah]

But I am not sure if the OOTB settings are relevant. ... I have some settings that I am refining that can soon be downloaded.

I always test OOTB settings first trusting the developer to give me a starting point that shows the basic concept.

I actually had that before, will add something to the next version.

Is it possible to have a hot link from the DBoard by clicking the Pair to the individual Chart?

Thank you.

[MathiasJ]

Is it possible to have a hot link from the DBoard by clicking the Pair to the individual Chart?

Thank you.

Hi!
I add that suggestion to my list.
It is planned to happen together with the new layout.
Br
Mathas

[syberiapoya]

Guys, I too noticed that CSS crossovers look exceptionally like a 7 period LWMA.
I used the "MA In Color" indicator to better see it.
Any thoughts about this?

[TraderJoeForex]

Guys, I too noticed that CSS crossovers look exceptionally like a 7 period LWMA.
I used the "MA In Color" indicator to better see it.
Any thoughts about this?

Yes.. if you have read Bob's teachings prior to CSS you will note how well price crossing 7LWMA seems to offer a lot of correlation to a coming change in the direction of price action. I think CSS is based on TMA rather than LWMA but once the bar has closed the reading will be the same. They way I read it TMA just offers more information during the candle as it updates.

[Raj4x]

Just so I understand it right: Is the idea that it must point up for it to be good?
Can pointing down be a valid option too?
Depending on how to read it it could just as well be that a flat curve is bad but going up or down is good.
I assume it is for us to find out but do any of you have any previous experience on this indicator?

When the global market trend line is pointing up then the average based on all the pairs selected is trending more than ranging... so any trend based system (like the way we are using CSS here) has a better chance of doing better when the whole market is pushing this way.

Visa Versa for counter trend or other contrarian strategies where you would want the line pointing down showing the market is ranging more than trending.

For us here we want the line pointing up i.e. delta to be +ve for sure. Open baskets will have increasing drawdown when the line is pointing down.

The question is how do we define the turn .. i.e. what is the best timeframe to observe, how many candles do we look back and what is the minimum delta that is safe for us to jump back in.

Also whether it is better to cut a whole basket if the Global trend turns against or hold and just stop adding until it turns back. Essentially this indicator shows the whole market cycle.. it is certainly very interesting to watch

It's indeed an interesting indicator, been watching it like you mentioned. Do you know what it's based on...i.e. how does it measure each pair and then come to a final curve?

Cheers

[syberiapoya]

Yes.. if you have read Bob's teachings prior to CSS you will note how well price crossing 7LWMA seems to offer a lot of correlation to a coming change in the direction of price action. I think CSS is based on TMA rather than LWMA but once the bar has closed the reading will be the same. They way I read it TMA just offers more information during the candle as it updates.

OK, I appreciate the explanation.

[syberiapoya]

During the last two days I had two 15% percent drawdowns that triggered a basket close.

report.png

I've attached the set file that I've used.

[syberiapoya]

However in one day, using TraderJoeForex's H1D1 set, I have a 4% drawdown & no basket closes. The basket has recovered from a bigger drawdown from USDCAD.

[TraderJoeForex]

For each set I feel 3 trades per pair is enough and max of 1 per pair per H1 candle. Since H1 will be the common denominator for both sets then 0.5% risk per H1 ATR and 0.5% basket TP is what I will try first.

Since I can't compromise on the size of the account (I want this to work from £500 up) I am going to eliminate all CHF pairs since they take up the most margin for the least gain and run all the rest.

Just had my 3rd basket close since yesterday:

1 basket from M5H1 (magic 1)
2 baskets from H1D1 (magic 2)

.. the drawdown being kept nice and low with H1D1