Hi Guys and Gals...
Here we will be discussing the fine art of basket trading Baluda's Super CSS indicator on crossovers from the London Open or any open you wish to trade.
Please feel free to post your ideas regarding basket trading and your results for others to follow.
System.
1] Chart Time Frame: 1H
2] Start time: UK opening 08:00 (10:00am Bully Bully Pepperstone).
3] Entry: Buy or sell if the UK 07:00 (09:00 Bully Bully Pepperstone) CSS colour is different from the previous 06:00
Trade example:
If it does not meet the requirement just wait for a crossover and take the trade:
4] I risk 1% per trade with a stop loss set at 2 x 20 Day ATR. So if 20 day ATR is 100 then set SL to 200 with 1% risk. I then delete the SL. The reason for this is very simple, I am hedging and if the price goes against me by 200 pips I should have a fair few counter trades taking care of it for the basket closure. I do have the basket trade manager set at 10% Stop Loss because if it makes it that far something went seriously wrong. I had 115 trades opened recently and DD went to just below 3% for a short period on the GBP rate news.
5} My TP is a mere 1.5% per day. One basket per day.
6] Once in a trade I trade every 1H candle until the basket is hit. ALWAYS trade in the direction of the CSS, NEVER try to predict where you think the market is going, just concentrate on the process and let the dice fall where they may.
Points to note if you want to give this a go:
a] You will miss a lot of pips because placing a lot of manual trades on the hour takes a few minutes and the candles can move some distance from the open of the new candle. I just live with it.
b] You could trading this system be placing many trades 100+ so a low leverage account will not cut it, probably a minimum of 1:400 You will also need to check that your broker allows you to place more than 100 trades, some do not.
c] Because it is a hedging system and given the quality of the CSS signals the pairs which are whip sawing are of little consequence because it does not take much of a move with enough trades set in the right direction to close the basket.
d] You should expect a draw down in the region of 4% but this is based upon limited data, however having had 115 trades open I have yet to witness a draw down greater than this, does not mean it will not happen though hence the emergency Stop Loss of 10%
There is a slight variant on this which Gertje trades, he trades ALL the candles in whatever direction the CSS is indicating at the London open and more recently one hour after the London open.
The only difference this has made that we can see is that his Draw Down is on average ever so slightly greater than the method mentioned above. If you are a risk aversive type of trader then stick to just the new candle crossovers after the London Open.
UPDATE: 03/10/2016
Now that we have an EA to trade this the following modification to the above system.
Trades are only taken in the direction of the CSS 4H candle.
TP reduced to 1.2%
Emergency SL set to 25%
EA is traded 24/5
Basket Trading BALUDA'S CSS Crossovers
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Basket Trading BALUDA'S CSS Crossovers
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Last edited by Zennor on Tue Oct 11, 2016 2:07 pm, edited 2 times in total.
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Basket Trading BALUDA'S CSS Crossovers
Here are the results of my trading this method for the last 6 Trading days.
Now trading to make just 1.5% per day may seem a little slow to some and yes it can be, initially.
However compounding does have it's benefits:
£1,000 @ 1.5% Per Day after 5 days will be £1,077.28
£1,000 @ 1.5% Per Day after 20 days will be £1,346.86
£1,000 @ 1.5% Per Day after 120 days will be £5,968.32
Given the Draw Downs observed so far and as previously mentioned the Basket SL to 10%
So say after day 40 your account would be £1,814.02 and you hit a 10% Basket SL, you would lose -£181.4
Your account would now be £1632.60 after a further 7 days trading you will have recouped all but £2 of that loss. So a Basket SL hit is not the end of the world..
MASSIVE RIDER... This is still very much in the early days of testing, I would not even consider trading this live until I see the results of at LEAST 500 trades PER PAIR and to witness a few Stop Losses being hit to observe the overall effect this has on the system...
Now trading to make just 1.5% per day may seem a little slow to some and yes it can be, initially.
However compounding does have it's benefits:
£1,000 @ 1.5% Per Day after 5 days will be £1,077.28
£1,000 @ 1.5% Per Day after 20 days will be £1,346.86
£1,000 @ 1.5% Per Day after 120 days will be £5,968.32
Given the Draw Downs observed so far and as previously mentioned the Basket SL to 10%
So say after day 40 your account would be £1,814.02 and you hit a 10% Basket SL, you would lose -£181.4
Your account would now be £1632.60 after a further 7 days trading you will have recouped all but £2 of that loss. So a Basket SL hit is not the end of the world..
MASSIVE RIDER... This is still very much in the early days of testing, I would not even consider trading this live until I see the results of at LEAST 500 trades PER PAIR and to witness a few Stop Losses being hit to observe the overall effect this has on the system...
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- cozybooks
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Basket Trading BALUDA'S CSS Crossovers
HI Zennor,
Thanks for sharing your ideas!
If you get a day when you haven't reached your 1.5% TP or your 10% SL, would you continue to trade every hour until you run out of margin, or just until the London close (or some other time)?
Just wondering when you would make the decision to close all trades and be ready to start again the next day?
Thanks for sharing your ideas!
If you get a day when you haven't reached your 1.5% TP or your 10% SL, would you continue to trade every hour until you run out of margin, or just until the London close (or some other time)?
Just wondering when you would make the decision to close all trades and be ready to start again the next day?
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Basket Trading BALUDA'S CSS Crossovers
Zennor
Watching with interest.
You mention a basket trade manager. Is that an EA from this site or elsewhere?
Thanks
Watching with interest.
You mention a basket trade manager. Is that an EA from this site or elsewhere?
Thanks
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Basket Trading BALUDA'S CSS Crossovers
cozybooks » Fri Sep 23, 2016 4:10 am wrote:HI Zennor,
Thanks for sharing your ideas!
If you get a day when you haven't reached your 1.5% TP or your 10% SL, would you continue to trade every hour until you run out of margin, or just until the London close (or some other time)?
Just wondering when you would make the decision to close all trades and be ready to start again the next day?
Cozybooks, that is a great question, at the moment I intend to continue trading until either the SL or TP is hit.
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Basket Trading BALUDA'S CSS Crossovers
That is quite a good idea Mathias especially given the low Draw Downs observed so far..MathiasJ » Fri Sep 23, 2016 8:25 am wrote:
My thoughts on this is to maybe close all trades like 18:00 London time if the basket is not yet filled.
And then start out fresh next morning again, but that is yet to try out.
BR
Mathias
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Basket Trading BALUDA'S CSS Crossovers
Pakeha I use the manager from this site..pakeha » Fri Sep 23, 2016 4:24 am wrote:Zennor
Watching with interest.
You mention a basket trade manager. Is that an EA from this site or elsewhere?
Thanks
- Gertje
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Basket Trading BALUDA'S CSS Crossovers
.
BAM!!
1.5% TP hit, 2 candles traded. Max DD 77.4 pips......
This way of trading MUST be good, as it is boring as hell.....
BAM!!
1.5% TP hit, 2 candles traded. Max DD 77.4 pips......
This way of trading MUST be good, as it is boring as hell.....
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Basket Trading BALUDA'S CSS Crossovers
Nice Gertje, must admit when I saw all the moves I thought that you would be out soon but good that we are trading slightly differently so in a month or so we can contrast and compare.Gertje » Fri Sep 23, 2016 9:40 am wrote:.
BAM!!
1.5% TP hit, 2 candles traded. Max DD 77.4 pips......
This way of trading MUST be good, as it is boring as hell.....
What leverage are you trading at the moment?
- Gertje
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Basket Trading BALUDA'S CSS Crossovers
I have all my demo's set at 1:200 as this is the max GP can offer.Zennor » Fri Sep 23, 2016 8:44 am wrote:
Nice Gertje, must admit when I saw all the moves I thought that you would be out soon but good that we are trading slightly differently so in a month or so we can contrast and compare.
What leverage are you trading at the moment?