Nicely written very clear. I don't suppose as well as the template you will be giving us the 27" monitor for it to go on?
Mick
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| Jem's Uber Basket Trading Thread https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=640 |
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| Author: | Jemook [ Thu Jun 21, 2012 5:35 pm ] |
| Post subject: | Jem's Uber Basket Trading Thread |
INTRODUCTION to 10.2 Hi, I'm Jem, let's keep this simple. Bob launched 10.2 and a test version of 10.2a recently which has rocked our worlds. You MUST become familiar with them before you delve into this thread: 10.2: http://www.stevehopwoodforex.com/phpBB3 ... f=38&t=562 10.2a: http://www.stevehopwoodforex.com/phpBB3 ... 769#p15769 10.2/a are highly effective, brilliantly smart and straightforward systems. They lets us know which currency pairs are ranging and which currency pairs are trending strongly. They are also superb at letting us know when to re-enter into a strong trend. Get to know these systems before you continue. They will help you as a trader and you will have a greater chance of understanding the brilliance that is about to go down. BASKET TRADING Basket trading is a trading style where a selection of pairs are traded as one. Instead of looking at each pair individually we now look at it as a single basket and when that basket reaches X amount of pips our TP or SL is hit. We add long/short positions only on the pairs that are trending strongly. One of the beautiful things about the forex market is the correlation between pairs – if we time our entries correctly then we will see all of our basket trades going into profit together. Of course, if we get it wrong they will all go into a loss together. Timing is absolutely essential with this. This is why you better wait for a retracement before we get in which will put the odds in your favour. Seriously, if you don't wait for a retracement you're going to cop a mouthful of A-grade DrawDown. You've been warned. WHY BASKET TRADE? As humble human beings we have emotions and they completely get in the way of our trading. For me, the ultimate in trading bliss is to trade a system that removes as much stress, fear and doubt as possible from the equation. How do I do this? By eliminating as many questions as possible and spending as little time as possible in front of the charts. I like to set my trades and then walk away. It may suit you better to TP when you feel it's right. Use your discretion. With basket trading we don't have to worry about where to place our stops for each individual trade. We can set our risk:reward at 1:1 or better because we are choosing a set TP and SL for each basket. No worries about multiple correlated individual trades either, we are using them to our advantage here and no need to choose which correlated pair is going to be the one to move. We spread our risk over a bunch of pairs and use their pull and push effect to move in the proper direction and get big pips. There will always be ways of adapting this to suit your style so my rules are merely suggestions. I bend them quite often when I see a good setup. Once you've spent enough time with the system you'll be able to bend the rules too. At the same time you'll want to keep consistent so I urge you to do all your messing around on a demo and get a few months of consistent profits before attempting to go live with this. THE SETUP IN BRIEF 1. Choose the strongly trending pairs & add them to a watch basket. 2. Wait for price to to retrace on most of the chosen pairs 3. Wait for the triggers to start kicking in on most of the chosen pairs 4. Launch the basket! This is a 'take your time and wait for the perfect setup' strategy. We will be trading H4 charts which means there will be plenty of days of no-trades. If the market is ranging sit on your hands or switch to a different strategy! Last week was a week of no trades while the pairs were changing direction. It's a sign of a good system when it tells you to stay out of the market. Go do something in real life like play with your kids or go skydiving, or rob a bank – whatever. OK LET'S GET INTO IT! 1. The Watch Basket When a pair meets the following requirement add the pair to your watch basket:
Note that we are using the D1 TMA Slope value for direction and strength. We are actually trading the H4 lower time frame which allows us to get back in on retracements from the bigger picture of the D1 trend. Please not that the .8 is a recommendation for the best setups. if you see a pair fall between .4 to .8 it may still be tradable. Is up to you to work out if we are still trending or not by using your 10.2 brain 2. The Retracement Setup Now that you have your chosen pairs for your basket it's time to watch and wait for a retracement. Either RETRACE A or RETRACE B is ok. SHORT PAIRS (below -.8 on daily)
3. The Trigger Setup On the charts that you confirmed RETRACE A look for TRIGGER A. On charts that you confirmed RETRACE B look for TRIGGER B. These triggers are from 10.2 and 10.2a, if you don't understand them then it's time to hit the manuals again. SHORT PAIRS (below -.8 on daily)
4. Launch The Basket Your basket pairs have been chosen. The retracement conditions have been met on most of the pairs. You see them triggering one by one. when you see a trigger setup on most of your pairs enter a basket using ShelleyNow
MONEY MANAGEMENT From here the following is up to you: 1. Money Management including pips sl/tp, jumping stops and breakevens. 2. Closing your trades earlier by time (i.e.; just before next session open) 3. Closing trades if you see the pairs in profit and reaching supports/resistances and you don't think they will break through. 4. Closing trades if the little voice in your head tells you to. EXTRA NOTES In 10.2 Bob discusses the order of daily, weekly and monthly pivots to determine direction/trend. Read up on this as a great trade is at hand when the pivots are in the correct order and you get a retracement setup/trigger. If a pair is not in the correct order this doesn't mean it's not a good setup just be wary of the trade going against you. I've noticed recently that the Asian session offers us The Retracement Setup. The London open offers us The Trigger Setup and then we go into profit until NY open reverses everything. It might be wise to close trades before the NY session to make sure that your profit doesn't go into a loss. But then again holding a trade for full TP or full SL is a 1:1 money management issue you might want to stick by. Watch out for supports/resistances! Try not to long/short into a monthly/weekly resistance or support. Also, if you see a long setup that is hovering above a support, or a short setup that is hovering under a resistance, take it! Most importantly - wait for a retracement. If a pair falls below the 'strongly trending' D1 TMA Slope then it's up to you if you'd like to remove it from your basket or not. Sometimes it is just retracing and setting up for a bigger move. However if you have a whole bunch of pairs in your basket and they all fall below .8 this could be the start of a reversal, watch out! But then again it could just be a beautiful retracement. I like to have the H1 CurrencySlopeStrength up on my screen. When the H1 crosses over it can be a sign of a reversal coming up. I'm not adding rules to the system just yet on this but keep an eye on this as it's really good for spotting a reversal. Over here we can see an AUDUSD trade that went sour: I should have known to take profit at the WS1 because the H1 USD slope was above the AUD indicating USD strength and AUD weakness. Keep an eye on this with your trades, it's dynamite. I may add it in to the system, still getting a feel for it. DOWNLOAD THESE GOODIES TEMPLATE: 10.2 x JemBasket - Info // Use this on a seperate chart to monitor your basket. TEMPLATE: 10.2 x JemBasket - Watch Pair // Use on each basket pair. This is where you trade from EA: ShelleyNow // The EA to trigger your basket trades. Please note that with DWMPivots you may need to adjust the true/false value for addSundayToMonday depending on your broker to get the pivots correct for your br0ker. This pack includes assorted indicators/EAs built by the masters of 10.2. You can thank SteveHopwood, Baluda & NeoTrader for them. Of course thanks to Bob for 10.2, Shelley for her upside-down basket head and anyone else that's delving into 10.2 and attempting to crack the forex code. You guys rock. |
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| Author: | feucht [ Thu Jun 21, 2012 6:27 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Thanks for this Jem, I was getting really excited with SJ before, though totally understand that Steve was getting fed up with it and had to leave it alone for a while. I'm sure we have enough clues now to piece together a really strong and resilient strategy from this, and one day an EA will appear to help us automate it. Great work! |
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| Author: | fire580 [ Thu Jun 21, 2012 6:33 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Thanks Jem very precise and clear. |
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| Author: | cumquat [ Thu Jun 21, 2012 6:44 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Nicely written very clear. I don't suppose as well as the template you will be giving us the 27" monitor for it to go on? Mick |
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| Author: | garyfritz [ Thu Jun 21, 2012 6:53 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
That's *beautiful*, Jemook! You have a gift for very clear explanation -- and I say that as someone who writes training and documentation for a living. Very nicely done, and thanks much! London open is 1am my time, NY open is 6am. I'll have to watch this for a while and see how it fits into my day. I may need to rely on an EA if it's always going to need attention when I'm trying to sleep! |
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| Author: | TallCoolOne [ Thu Jun 21, 2012 9:05 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Hi Guys, I appreciate all of Jems hard work. But it occurred to me, when a you look at the TMA slope indicator. When it is over +0.8 there are usually more up bars than down bars and when it is under -0.8 there are more down bars than up bars. So I have been opening a basket of trades at the beginning of the new D1 bar for any pair > 0.8 or < -0.8. I close that basket at the next new D1 bar, rinse and repeat. I have written a EA to do it. But manually this is very easy. Just my thoughts. Thanks to everyone here and FF for all the hard work. TCO. |
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| Author: | pete14 [ Thu Jun 21, 2012 9:09 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
great work, thank you pete |
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| Author: | hansnl [ Thu Jun 21, 2012 9:22 pm ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Merci!! Thank's!! Bedankt, nice brain work , splendid explanation!!  very enlightening |
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| Author: | mobthehop [ Fri Jun 22, 2012 1:47 am ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Thanks J! |
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| Author: | Jemook [ Fri Jun 22, 2012 2:33 am ] |
| Post subject: | Re: Jem's Uber Basket Trading 10.2 Thread |
Cheers guys. I'm glad you can follow it, I was going crazy trying to work out if what I was saying made sense. Now it's time for some analysis. I'm going to post a screenshot of my entire desktop / watch basket so I can discuss everything at once and you guys get the big picture. I just added the templates and EA to the main post. Download them if you want to see what I'm seeing. Here is todays setup: First up the 'strongly trending' pairs we are watching are the following Buy Pairs: AUDCAD, AUDJPY, AUDUSD, NZDUSD, NZDJPY, NZDCHF, AUDCHF Sell Pairs: GBPAUD, GBPNZD, EURAUD, EURNZD Just quickly - AUDCHF, GBPAUD & EURAUD have fallen off the 'strongly trending' threshold and are hovering at -.7 I'm still going to trade them if we get the setup because I expect them to move together with the other 'strongly trending' pairs and eventually turn into -.8. Here are some of the examples of the charts we are looking at: AUDCAD - It is under the daily pivot and 5.1 MA - Retracement Setup complete. - Price has also retraced to the bottom of H4 TMA bands, big retracement!. - Note that the H1 CurrencySlopeStrength shows the AUD gaining strength. When the AUD slope crosses above the CAD slope I'll know this is a good trade.Once I'm in the trade if the CAD crosses above the AUD again I'll know to think of exiting. AUDJPY - It is under the daily pivot and 5.1 MA - Retracement Setup complete. - Note that the H1 CurrencySlopeStrength shows the AUD gaining strength. - Price hovering at R1, watch out for longing into resistance. AUDUSD - It is under the daily pivot and 5.1 MA - Retracement Setup complete. - Price has also retraced to the bottom of H4 TMA bands, big retracement!. - Price bounced at weekly pivot, good sign! GBPAUD, GBPNZD - It is above the daily pivot and 5.1 MA - Retracement Setup complete. - Price has also retraced to the top of H4 TMA bands, big retracement!. - Note that the H1 CurrencySlopeStrength shows the AUD gaining strength. - Price rejected at MS1, great sign! Look for other clues of the retracement losing steam/reversing. You should be able to see quite a few. The trigger setup on this will happen when the pairs start touching the blue MA's or I can wait to see if they start crossing the daily pivot to launch my basket. I'll probably take it on a blue MA touch and if I see it rejecting at the daily pivots I'll look to close the basket. Also, if the basket goes into a nice profit I'm going to watch the H1 slopes on the bottom of each chart to see if I should stay in the trade or think about closing them. If there is a cross against me I'll shut them. |
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