Jem's Uber Basket Trading Thread

[nonlinear]

Hey Jem, If you would, what are your current thoughts on exits? Exiting too early, while less risk adverse, leaves a lot of pips on the table at times. I think many see that now. I am more inclined to stay in trades, but am struggling with when to exit (currently looking at some of Neo's indicators for possible exits). Thanks for your work as always.

[garyfritz]

wingate, this is brilliant! We are trading the *basket* -- the sum of profits of all pairs. To date we've only had Baluda's iExposure, Tickets "what is the P/L for each pair now" indi. But this approach lets us see the equity curve of the entire basket!!

I would modify the indi to take "long pairs" and "short pairs," and to calculate & sum up the #pips open profit in all pairs. That would be an exact analogue for what the NB basket systems use. In fact, now that I think of it, we might not even have to mess with offline charts! I'm not certain but it might be possible to write an indi that does the above -- sum up the open profits for each of the basket pairs -- and plots that in history. I think that would be a fabulous tool for understanding the basket behavior!

Of course, if you calculate only the open trade profit, you couldn't use it as an entry signal like you are. Hm. Maybe just summing up the prices is the right idea. That would definitely be do-able in an indi, without offline charts. By summing them together you hide the behavior of individual pairs, so you reduce your ability to cherry-pick the best pairs to enter -- but really, with this basket approach, the assumption is that they're all going to run together anyway. Seeing a total-basket equity like that would make it really easy to see when the basket as a whole has its pullback and resumes the trend. I like it!!

EDIT: I bet you could even adapt Baluda's SlopeValues code to select out the pairs >X and <-X and have the indi automatically plot the "equity curve" for all the right pairs.......

[RockyJ]

Well I just spent almost 3 hours getting a setup for the Buys working correctly (I think). It was a little tricky but I figured it out. Good ol trial and error... for a while it was really hammering my computer , which is a pretty powerful rig, but the more I worked on it that issue has lessened.

I really think like Gary that this might be a big step in a good direction.. Thank you for your posting your idea wingate.. really interesting..

If it is possible to simplify the integration with Baluda's SlopeValues indie with the indie wingate provided or possibly come up with a new indie that combines them that would be a really nice step,

Gary it sounds like you are already thinking a mile a minute on this.. Good stuff..

[wingate]

Glad to hear that my 2 cents have triggered the old grey cells buzzing Gary, your comments just gave me a very wide 'hair parting', I did mention I was a complete numbskull when it comes to the inner workings of these things

[garyfritz]

Gary, your comments just gave me a very wide 'hair parting',

LOL, you'll have to tell me if that's good or bad!!

[RockyJ]

Gary:
would make it really easy to see when the basket as a whole has its pullback and resumes the trend.

That would be my main interest , at least at this time. Who knows what else might come of it..

[wingate]

Just put it this way, I was in need of a haircut anyway

[xlitang]

Hi,

Sorry should have attached the offline indi doh... Put it into the indicators folder then open it up in the editor. scroll down the code and you will see a list of case numbers ie 'case 2'. Choose anyone it doesn't matter then simply insert your desired pairs. Make a note of the 'case number' that you changed and then recompile.

Open up a chart (I use the eurusd but does not matter) and download history by holding down the home button or page up keys. Drag the recompiled indi onto the chart and open properties. Change the case number (14 default) to the case nuber you wrote down earlier then click ok. If you have done everything right so far then you will have a label at the bottom right of your chart which says ##T101##RUNNING, with me so far Savvy?

Final step coming up, Go to file/open offline (top left of screen) and from the list select the 'offline chart' you have just made. It will read ##T101## and be at the top of the list so you cannot miss it Congratulations you have now made an offline chart of all the pairs on 1 chart

If you just made an offline chart for the 4HR timeframe, in order to view the pivots and slope values on the DWM then you will first have to repeat the above making individual offline charts for the other timeframes first and then select and open them.

Hope that made sense, if not sing out.

Kevin

Kevin,

Can we code this indicator to scan the market for basket of buy pairs or sell pairs instead of manual input? We can define to generate for buy pairs and sell pairs in two different offline charts.

[harry45]

Hi,

Sorry should have attached the offline indi doh... Put it into the indicators folder then open it up in the editor. scroll down the code and you will see a list of case numbers ie 'case 2'. Choose anyone it doesn't matter then simply insert your desired pairs. Make a note of the 'case number' that you changed and then recompile.

Open up a chart (I use the eurusd but does not matter) and download history by holding down the home button or page up keys. Drag the recompiled indi onto the chart and open properties. Change the case number (14 default) to the case nuber you wrote down earlier then click ok. If you have done everything right so far then you will have a label at the bottom right of your chart which says ##T101##RUNNING, with me so far Savvy?

Final step coming up, Go to file/open offline (top left of screen) and from the list select the 'offline chart' you have just made. It will read ##T101## and be at the top of the list so you cannot miss it Congratulations you have now made an offline chart of all the pairs on 1 chart

If you just made an offline chart for the 4HR timeframe, in order to view the pivots and slope values on the DWM then you will first have to repeat the above making individual offline charts for the other timeframes first and then select and open them.

Hope that made sense, if not sing out.

Kevin

Kevin,

Can we code this indicator to scan the market for basket of buy pairs or sell pairs instead of manual input? We can define to generate for buy pairs and sell pairs in two different offline charts.

We can use one chart.For instance: if EURUSD is sell and Slope=-0.81.USDEUR- buy with Slope=+0.81.
So we have SlopeAverage(sum of |Slopes|/quantity of pairs) and all Pivots and so on in one chart.

[SWG123]

wingate, this is brilliant! We are trading the *basket* -- the sum of profits of all pairs. To date we've only had Baluda's iExposure, Tickets "what is the P/L for each pair now" indi. But this approach lets us see the equity curve of the entire basket!!

I would modify the indi to take "long pairs" and "short pairs," and to calculate & sum up the #pips open profit in all pairs. That would be an exact analogue for what the NB basket systems use. In fact, now that I think of it, we might not even have to mess with offline charts! I'm not certain but it might be possible to write an indi that does the above -- sum up the open profits for each of the basket pairs -- and plots that in history. I think that would be a fabulous tool for understanding the basket behavior!

Of course, if you calculate only the open trade profit, you couldn't use it as an entry signal like you are. Hm. Maybe just summing up the prices is the right idea. That would definitely be do-able in an indi, without offline charts. By summing them together you hide the behavior of individual pairs, so you reduce your ability to cherry-pick the best pairs to enter -- but really, with this basket approach, the assumption is that they're all going to run together anyway. Seeing a total-basket equity like that would make it really easy to see when the basket as a whole has its pullback and resumes the trend. I like it!!

EDIT: I bet you could even adapt Baluda's SlopeValues code to select out the pairs >X and <-X and have the indi automatically plot the "equity curve" for all the right pairs.......

Sounds like the way to go to me