Basket Trading by using offline chart

[jasonckb]

the overall market tumbled and risk off dominate, sell signal continued. Short the basket at 8/11 1:43 which is early morning in Asia here. Tue and Wed is such a hard time for basket trading as the risk on/off situation changed like flash. The equity has recorded a 2.39% loss.

[monkeh]

the overall market tumbled and risk off dominate, sell signal continued. Short the basket at 8/11 1:43 which is early morning in Asia here. Tue and Wed is such a hard time for basket trading as the risk on/off situation changed like flash. The equity has recorded a 2.39% loss.

did your short go into profit?

[jasonckb]

the overall market tumbled and risk off dominate, sell signal continued. Short the basket at 8/11 1:43 which is early morning in Asia here. Tue and Wed is such a hard time for basket trading as the risk on/off situation changed like flash. The equity has recorded a 2.39% loss.

did your short go into profit?

Yup, but not much....highest around 160 pips....now 16 pips

[jasonckb]

the overall market tumbled and risk off dominate, sell signal continued. Short the basket at 8/11 1:43 which is early morning in Asia here. Tue and Wed is such a hard time for basket trading as the risk on/off situation changed like flash. The equity has recorded a 2.39% loss.

did your short go into profit?

Yup, but not much....highest around 160 pips....now 16 pips

Now +227 pips. Seems the trend can continue although from the 89 periods 3 level semafor analysis, the projection from the average of last 5 swing ranges has been met already. Let MPBM do its part. And will not take short entry anymore because 1) target range of risk off is met, 2) last 2 days drop of the global market because of European issue and the financial cliff in US seems overdone.

[jasonckb]

[/quote]

Now +227 pips. Seems the trend can continue although from the 89 periods 3 level semafor analysis, the projection from the average of last 5 swing ranges has been met already. Let MPBM do its part. And will not take short entry anymore because 1) target range of risk off is met, 2) last 2 days drop of the global market because of European issue and the financial cliff in US seems overdone.[/quote]

profit locked by MPBM, earn 279.9pips, $323. from now on seeking long entry only.

[effluvium]

Hi all,
I have come across the method from FF (http://www.forexfactory.com/showthread.php?t=391229) and thanks to KOS and the originator of basket trading strategy ....
Okay, here are the rules.

1) The basket comprised of EURUSD,GBPUSD,AUDUSD,NZDUSD,EURJPY,GBPJPY,AUDJPY,NZDJPY

Jason, Could you explain briefly the criterias you have choosen to select these specific 8 pairs ?

[jasonckb]

Hi all,
I have come across the method from FF (http://www.forexfactory.com/showthread.php?t=391229) and thanks to KOS and the originator of basket trading strategy ....
Okay, here are the rules.

1) The basket comprised of EURUSD,GBPUSD,AUDUSD,NZDUSD,EURJPY,GBPJPY,AUDJPY,NZDJPY

Jason, Could you explain briefly the criterias you have choosen to select these specific 8 pairs ?

As I said in post #1, they are all anti-usd or anti JPY. In risk on mode, "normally" EUR/GBP/AUD/NZD strength, JPY weaken and further strength their YEn corsses and vice versa. And this risk on/off mode is very clear cut. The original 14 pairs is a bit stuck in the middle. Why? As the main theme of the basket trade is to trade on the market imbalance and skewing to one direction (risk on/off), however, the original basket consists of EURGBP, GBPCHF(which is apparantly the inverse of EURGBP), CHFJPY(apparantly EJ), EURCHF (don't know why it put here after CHF virtually peg to the EUR), USDCHF (invesre of EURUSD) which are not quite relevant to the main theme and their existence will increase the cost of spread. Also, the so-called "stablising" or "hedging"effect of them is pseudo. So I decide to get rid of them to provide clarity.

[jasonckb]

Just enter a counter trend basket long trade. No mechanical signal. Just price action and see the speed slowing. In addition, the new 3 level semafor in H1 chart in comparing with previous high semafor is already 2.243 which is quite extended in short term basis, rebound target is next high semafor and projected at 7 for next swing, but I will close when it go into the PAC.

[jasonckb]

Just enter a counter trend basket long trade. No mechanical signal. Just price action and see the speed slowing. In addition, the new 3 level semafor in H1 chart in comparing with previous high semafor is already 2.243 which is quite extended in short term basis, rebound target is next high semafor and projected at 7 for next swing, but I will close when it go into the PAC.

Close basket at 135 pips fro the counter trend trade

[jasonckb]

Today's long trade.