Jem's Uber Basket Trading Thread

[fluegel]

First post on this thread.
First of all, thank Bob, Jem and all the others who have contributed to this thread for this great great system!!
I started using this basket trading system on my REAL account last week, and got +600 pips for last week and another +600 pips for this week. My account is up 2.3% just for this week! Consistency of this system is really amazing.

Now I have a question. It looks like everyone on this thread is using this system for intraday trading rather than swing. Is there anyone who holds positions for several days or a whole week using this system?
Looking at this week's chart, although my trades were really successful, it would have been better if I open a basket on Monday and hold it for a week. Then I could get more pips and didn't have to pay unnecessary spreads.
Perhaps it's just that this week's trend was really strong and retracements were minor... What do you think?

[garyfritz]

I've been watching it closely this week, but I'm not trading it yet, so take what I say with a grain of salt.

The market's been on a tear for the past several weeks. This has been a fairly unusual run, but not unheard-of. It seems to make runs like this every month or three, though maybe not this strong.

I think holding on is the best strategy in markets like this. You reduce your trade management effort, your trade costs, your chances of screwing up an order.

My plan is to enter on a nice pullback, and as long as the DP stays ahead of the WP, I'll stay in. I'll run fairly loose trailing/jumping stops. Once the move slows down and the WP catches up, I'll tighten up the stops and look for an exit. I'll see how well it works when I actually do it.

In more normal times, grabbing small moves and running is a good strategy. But when the market hands you a bag of gold, why take just a few coins?

[forexripper]

Looking at the avg. weekly range of pairs it seems like all trade-able pairs have completed their run for the week except EJ, GBPCHF. So I will trade them GBPCHF on a retrace and am already short EJ.

My guess is that CT may bring some pips tomorrow or trading USD based pairs especially long UCHF, short EU, long UCAD even though DP may not be in line with WP and MP for these ones.

I am on live account so will only observe but demo guys can try to have actual results and share with us all. Thanks

[Jemook]

Here's some options of how to manage an open basket:

1. Hold it for as long as you want / can
2. Trailing / jumping stops
3. Closing at a certain time ie; open around London, close before NY
4. Aim for 1:1 risk:reward ie ie; target 500 pips, stoploss 500 pips
5. Skew for better risk:reward ie; target 750 pips, stoploss 500 pips

As Gary said, sometimes the markets will run and you may want to hold your positions. The markets may also range and we may get stopped out a few times. I'm doing my own findings on what is best and it's one of the things I'll be focusing on in the 2 months that I'll be away from the forum.

In the meantime it's up to you to to be smart and identify what kind of markets we are in and adjust your TP's accordingly. Have a great weekend guys. In the meantime here's +2650 open pips in 2 baskets:

2012-07-20 01.20.10 am.png

[Armen]

Hi Jem,
Nice to see you still in the forum. We'll be missing you.
Just wanted to add that there is one more option. ie If you see a particular currency is getting stronger (exceeding 0.8/0.6 level) you can re-enter that currency using either MA or DP cross.
Actually this is what I am working on at present.
Wish you fruitful research and results.

[Baluda]

And we're off for today...

Basket IV.png

[mobthehop]

Paul,

as apparently longer term baskets with re-entry are being considered (as anticipated), would like to check again whether there is any chance to consider to add a sum-by-pair function to your already excellent iExposure indicator

Thanks for your consideration

Mop

[Baluda]

baskets with re-entry are being considered (as anticipated), would like to check again whether there is any chance to consider to add a sum-by-pair function to your already excellent iExposure indicator

Click!

[mobthehop]

Lol - thanks Paul.....

[forexripper]

Exits:

My suggestion is to look into the cyclical turns using Sine wave. It plots S&R lines where we can exit.

So e.g. AU. We were long taking profits on R line then getting back in when R line was nicely crossed by the price or when S line is held or per Jem's rules (whichever). Interestingly, if we re-enter using S line or R line cross it most times coincides with the MA 5.1 touch. So try it and check it out.

Indi are attached. Save both but just drag Sine wave S&R indi on chart (shows red and white lines). Hope this helps and kind of solves the exit mystery.