Jem's Uber Basket Trading Thread

[Jemook]

Guys I'd like to point out that we are trading H4 chart and there is a lot of up and down movement that happens inside 4 bars on an H4 chart (24 hours). If you sit and stare at your screen you'll see your basket profit go up and down it may drive you mad and you could start second guessing your trades. You'll also pull out your hair when you see your breakevens get hit and then price continue in the intended erection.

This week we saw a big retracement on Monday and we triggered on Tuesday. After a big retracement price won't usually zoom off in our intended direction. Here's what happens (for example):

Tuesday's basket will go up +300 pips then drop down to -100 pips and then it will most probably continue in the correct direction for your initial TP of +600 pips. You could try and bank as much of that initial move of +300 pips and then try and re-enter again to target more pips. If you bank say +250 pips + 600 pips you could get up to 850 pips in a move instead of the 600 you initially targeted. Of course I'm pulling numbers out of my arse here but you get the point.

If you don't know how to hold a basket yet then instead of letting it hit breakeven try and bank as much of that initial move and then get back in again. Of course, as always, how you do this is up to you!

Back to you in the studio, Hopwood.

[kelisa]

Guys I'd like to point out that we are trading H4 chart and there is a lot of up and down movement that happens inside 4 bars on an H4 chart (24 hours). If you sit and stare at your screen you'll see your basket profit go up and down it may drive you mad and you could start second guessing your trades. You'll also pull out your hair when you see your breakevens get hit and then price continue in the intended erection.

This week we saw a big retracement on Monday and we triggered on Tuesday. After a big retracement price won't usually zoom off in our intended direction. Here's what happens (for example):

Tuesday's basket will go up +300 pips then drop down to -100 pips and then it will most probably continue in the correct direction for your initial TP of +600 pips. You could try and bank as much of that initial move of +300 pips and then try and re-enter again to target more pips. If you bank say +250 pips + 600 pips you could get up to 850 pips in a move instead of the 600 you initially targeted. Of course I'm pulling numbers out of my arse here but you get the point.

If you don't know how to hold a basket yet then instead of letting it hit breakeven try and bank as much of that initial move and then get back in again. Of course, as always, how you do this is up to you!

Back to you in the studio, Hopwood.

Deep retracement again today. True enuf, most of my pairs got hit BE. Gotta re-enter again later.

[Armen]

Morning mates,

Expecting deep correction up, I set 10.2a DP BUY on EUR and some of the crosses.
On 7:03 news came on EBS and EUR spiked to fresh day high.
The results so far ...

[alex_forex]

Breakeven for my yesterday basket (+20pips...)
Will re-enter today.

07/24/2012 14:33 07/25/2012 10:00 AUDNZD Buy 0.10 0.00000 0.00000 1.30156 1.30543 38.7 25.09
07/24/2012 14:33 07/25/2012 10:00 EURGBP Sell 0.10 0.00000 0.00000 0.77947 0.78024 -7.7 -9.82
07/24/2012 14:33 07/25/2012 10:00 EURUSD Sell 0.10 0.00000 0.00000 1.21022 1.21029 -0.7 -0.60
07/24/2012 14:33 07/25/2012 10:00 GBPCHF Buy 0.10 0.00000 0.00000 1.54085 1.53955 -13.0 -10.71
07/24/2012 14:33 07/25/2012 10:00 USDCHF Buy 0.10 0.00000 0.00000 0.99242 0.99271 2.9 2.43


Cheers
Alex

[Armen]

Morning mates,

Expecting deep correction up, I set 10.2a DP BUY on EUR and some of the crosses.
On 7:03 news came on EBS and EUR spiked to fresh day high.
The results so far ...

EUR advanced about 97 pips. My morning basket made some 200 pips upon closure.
Waiting retrace to enter long on EUR and its crosses.

[effluvium]

Morning mates,

Expecting deep correction up, I set 10.2a DP BUY on EUR and some of the crosses.
On 7:03 news came on EBS and EUR spiked to fresh day high.
The results so far ...

Armen, could you explain how have you predicted that EUR and its crosses would take a North direction this morning ? I mean were you based on indicators ? Or just your intuition ?
By the way what is EBS you have mentioned ?

[effluvium]

Guys I'd like to point out that we are trading H4 chart and there is a lot of up and down movement that happens inside 4 bars on an H4 chart (24 hours). ......

This week we saw a big retracement on Monday and we triggered on Tuesday. After a big retracement price won't usually zoom off in our intended direction. ...... .

Hi Jemook ,

I have a simple question: Retracement is common in any Forex pair. So do you think that it would be a winning strategy, if we could have at our disposal something to cut the trade as soon as the 4H candle close above/below the 5.1 LWMA (in the opposite direction of the original move).
I think it could preserve the pips already accumulated.

Another question: It seems to me that on some of your charts, you were using Demark Trendlines. (may be I'm wrong) Do you think that they could bring some additional refinements in the 10.2 strategy ?

[Armen]

Armen, could you explain how have you predicted that EUR and its crosses would take a North direction this morning ? I mean were you based on indicators ? Or just your intuition ?
By the way what is EBS you have mentioned ?

Hi effluvium,
Copied from Wikipedia
Electronic Broking Services (EBS) is a wholesale electronic trading platform used to trade foreign exchange (FX) with market making banks. It was originally created as a partnership by a number of the world's largest banks and is now part of the ICAP (company).

So, today on 7:03 there was a news spread on EBS there are arguments in favor of the ESM having a banking license which hopefully will stabilize and help the Euro zone economy.
Here is extract of European Central Bank council member Ewald Nowotny interview to Bloomberg.
"It is hoped that a banking license would allow the European Stability Mechanism to access the ECB's cheap lending facilities and extend its current lending capacity of 500 billion euros ($604.96 billion) to make large bond purchases, boosting demand for government debt."

To the first question. Along with 10.2A system I also monitor the PA and plot Elliott waves which tell me that the current impulse is over and corrective wave is on the way.
But that is a different story.

Cheers.

[Jemook]

Hi Jemook ,

I have a simple question: Retracement is common in any Forex pair. So do you think that it would be a winning strategy, if we could have at our disposal something to cut the trade as soon as the 4H candle close above/below the 5.1 LWMA (in the opposite direction of the original move).
I think it could preserve the pips already accumulated.

Another question: It seems to me that on some of your charts, you were using Demark Trendlines. (may be I'm wrong) Do you think that they could bring some additional refinements in the 10.2 strategy ?

Feel free to cut your trade however you wish - if it works for you great. Once the trades are in it's up to you how to manage them. I really think everyone should work out for themselves what works with this.

In regards to Demark Trendlines I was watching them for a bit as Bob posted a new way of playing 10.2 using them. It is just another way of trading 10.2 but I won't be using them in my basket system.

[garyfritz]

You'll also pull out your hair when you see your breakevens get hit and then price continue in the intended erection.

Not gonna touch that one.

Tuesday's basket will go up +300 pips then drop down to -100 pips and then it will most probably continue in the correct direction for your initial TP of +600 pips. You could try and bank as much of that initial move of +300 pips and then try and re-enter again to target more pips. If you bank say +250 pips + 600 pips you could get up to 850 pips in a move instead of the 600 you initially targeted.

So how do you know it's going to pull back after +300 instead of just continuing? If you bank pips at +250, then you'll miss the rest of the move if it keeps going to +600 without a pullback. Or do you assume it will always/usually have a false start after a pullback?