The lesson I have learnt for this 2 weeks about the offline basket trading method is that.
1) The 8 pairs basket (or even the original 14 pairs in KOS thread) is almost the same shape and trend as GBPJPY. This is obvious even though you don't look into the chart, when risk is on JPY weak, and anti-usd strong, so GBPJPY rise with similar momentum and trend except there is some news only about GBP, then GBPJPY may become slower or faster.
2) You trade the basket like you trade 8 lots of GBPJPY. But advantage is you can diversify to prevent the inactive of a particular currency.
3) As you are almost trading GBPJPY, like all other pairs, it will range and whipsaw. So it comes to the same old question --- "how to avoid to trade in a whipsaw market"
To cater point 3, I will try to incorporate my GPS rating system into the basket and avoid to trade at +2 to -2 like these 2 days (just keep ranging between -2 to +1)
Now it is -2
Date 13/11/2012
Currency Basket PAIRS!A1
Pivot Squence (D/W/M) W>M>D 1
Price vs. DP Below -1
Price vs. WP Below -1
Price vs. MP Below -1
D1 Slope (+0.4/-0.4) 0
D1 Direction Decreasing -1
H4 Slope (+0.4/-0.4) 0
H4 Direction Increasing 1
Total Scoring -2
Trading Bias Ranging