SWG123 wrote:

garyfritz wrote: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

The_Snowman wrote:Before this offline basket mania gets to far, too fast, I just don't really see the value of it.

I mean, we have to go back to the normal charts to trade anyway, we have a monitoring system already in place, what does the basket really give us?

What if 1 of the pairs has not set off the entry trigger as per the rules? Will we trade it just because the offline basket says so?

Offline charts can be a pain, and with that special indicator to combine all pairs, only being able to watch the BUY or the SELL pairs with one Empty4 and having to run another for the opposite trades, way too much hassle for me.

Perhaps you can improve on the system / method but for me it doesn't get any simpler - eg.

1. Find the eligible trending pairs, use Daily charts & Slope Values, check M.P.

2. Find the retracement on 4 H charts, check W.P.

3. Find the entry points on 1 H charts (for me D.P.)

Manage trade as required.

Easiest way to learn and watch pure Price Action that I have seen, good luck.

The_Snowman wrote:Before this offline basket mania gets to far, too fast, I just don't really see the value of it.

I mean, we have to go back to the normal charts to trade anyway, we have a monitoring system already in place, what does the basket really give us?

What if 1 of the pairs has not set off the entry trigger as per the rules? Will we trade it just because the offline basket says so?

Offline charts can be a pain, and with that special indicator to combine all pairs, only being able to watch the BUY or the SELL pairs with one Empty4 and having to run another for the opposite trades, way too much hassle for me.

Perhaps you can improve on the system / method but for me it doesn't get any simpler - eg.

1. Find the eligible trending pairs, use Daily charts & Slope Values, check M.P.

2. Find the retracement on 4 H charts, check W.P.

3. Find the entry points on 1 H charts (for me D.P.)

Manage trade as required.

Easiest way to learn and watch pure Price Action that I have seen, good luck.

kelisa wrote: As for this coming week, I will experiment with longer trades. Ie, I will try to hold trades as long as till Friday. Once trade is executed, I will switch to D1 to monitor price, if price retrace above 5.1 on D1, I might consider closing trade. So, these open pairs will be BE+1 on end of Day 1 and we'll see then.

garyfritz wrote:Yes, if you average everything together into a basket, you can't see the individual pair behavior. One solution to that is to still watch the individual pairs for entry signal.

But on the other hand, the whole idea of this approach is that these pairs are correlated and tend to move together. So if the basket as a whole starts moving, won't the laggards usually catch up?

This strategy trades the basket. We use the open equity of the basket to trigger TP and SL -- NOT the open equity of individual pairs. So in my mind it just makes sense to watch the behavior of the basket open equity to help manage the trade. If the basket equity has a pullback and starts moving positively, then it seems like you'd be less likely to hit the basket SL -- regardless of how individual pairs are behaving.

We've been working all along to try to get a feel for good TP / SL / BE / JS / etc levels, and that was hard to do with a whole basket. Viewing the basket equity is exactly how we can get a better feel for that.