Basket Trading System (T101 system) - page 13

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Thanks for sharing your system here!!!

Hi PipScorer / 101,

First of all, I have to say, it is very kind of you to share your great system here with all of us.

I have spent the past two days to read thru the 140 pages of posts in the other forum, and some other related threads. You were extermely helpful and supportive, but I have to say toward the end, things just got out of hand. I have been a silent reader all along, and have seen a lot of situations like that.

I hope members here will spend sometime to have a look at the thread in the other forum, as it is going to answer a lot of questions that someone may ask, and hopefully, history doesn't repeat itself here and drive you away...

After the long reading, I did a little research, and I would like to share it here (or may be more of asking for opinion...) to all the great people that I have quietly learned from. May be it is going to be a little sidetrack from your original system, but it is just an observation for now. Hopefully, it will lead to something.

Here is what I have found and done, I was trying to use EURJPY as a leading pair to determine the ordering direction of all others (EURJPY and 13 others).

In order to determine the strength of EUR vs JPY, I tried to a set up a balancing basket of pairs as shown below. I hope I got it right, if not, please give me a hand on sorting it out! The way it is constructed, if JPY is gaining strength, the SELL group should pick up some good pips, and give us a indication, and the opposite is true, if EUR is picking up speed, pips will float to the BUY group. See next post for observation on the proposed pairs.

eurjpy_basket_pairs.bmp

The spreadsheet is attached.

pair_evaluation.rar

 

The pattern is the same on daily charts and weekly charts.

Also see this correlation heatmap from Oanda.

oanda_heatmap.bmp

 

@Pipscorer

Curiously Julius! When you get profit over 2 years, did you notice another signal to make profit like correlation above, or just same rule on tendem that you post on First Page?

 

Two methods in Phase one

As far as I got it, and please Julius correct me if I got it wrong, this method has 3 phases, the last of which we still don't know about -at least, I. The main trading method in Phase 1 is to trade all the 14 pairs in the same direction (optimization can be made on a discretionary basis with two pairs among the 14 to be traded the other way around; see the IA to detect those mavericks), and the "jumping pairs" method is basically for you to use when you get bored waiting for the 14 pairs trade setup to take place (Julius described it as a "scalping method at the beginning of the market"). Phase 2 is about correlation and pairs (JPY pairs, USD pairs and Middle pairs) and is to be used in ranging markets, so 4051fx I think you have your answer here .

Slade made a first approach regarding the EUR/JPY domination, although Julius stated that the real leading forces were USD and JPY. He conceived the system, I guess we must accord it to him a little here, musn't we?. Leialex: why do you take USDCAD in your charts? It's no longer in our Universal pairs -could you be so kind as to keep the universal stuff universal, please? Just for the sake of our overblowned minds I wouldn't have mentionned it if it wouldn't have taken such a huge part in the blue squares of your correlation map.

By the way, for those who might wonder how this sets have been constructed, Julius said we could also trade with only 10 pairs (although it would be less rewarding/efficient):

Set 1 Set 2

GBPUSD EURCHF

EURGBP GBPJPY

GBPCHF AUDUSD

AUDJPY USDJPY

EURJPY EURUSD

With this, the original setup and the universal one, it looks like you have all you need to figure it out (I won't try, but that could be nice to see how one constructs this, just in case the actual universal pairs wouldn't balance in the future).

@ Julius and ram: glad to be helpful.

 
leialex:
Hi PipScorer / 101,

First of all, I have to say, it is very kind of you to share your great system here with all of us.

I have spent the past two days to read thru the 140 pages of posts in the other forum, and some other related threads. You were extermely helpful and supportive, but I have to say toward the end, things just got out of hand. I have been a silent reader all along, and have seen a lot of situations like that.

I hope members here will spend sometime to have a look at the thread in the other forum, as it is going to answer a lot of questions that someone may ask, and hopefully, history doesn't repeat itself here and drive you away...

After the long reading, I did a little research, and I would like to share it here (or may be more of asking for opinion...) to all the great people that I have quietly learned from. May be it is going to be a little sidetrack from your original system, but it is just an observation for now. Hopefully, it will lead to something.

Here is what I have found and done, I was trying to use EURJPY as a leading pair to determine the ordering direction of all others (EURJPY and 13 others).

In order to determine the strength of EUR vs JPY, I tried to a set up a balancing basket of pairs as shown below. I hope I got it right, if not, please give me a hand on sorting it out! The way it is constructed, if JPY is gaining strength, the SELL group should pick up some good pips, and give us a indication, and the opposite is true, if EUR is picking up speed, pips will float to the BUY group. See next post for observation on the proposed pairs.

eurjpy_basket_pairs.bmp

The spreadsheet is attached.

pair_evaluation.rar

Hello Leialex,

Honestly I really appreciate your post, though a little complicated but I think I manage to understand to understand the point across:

a) On the Correlation issue as to what really represent the basket. I have responded to this question already raised by readers in the other forum:

Forex Factory - View Single Post - Signals for Simplicity

Here is also the reply of that reader:

Forex Factory - View Single Post - Signals for Simplicity

b) Leialex you must take note that correlation is not the heart of the system, it is not event he basis of this trading phenomena. I selected the most number of pairs a broker have in their platform making sure that this 14 are hedge(not perfect) and trade the first set buy and the second set sell. Hence they are imperfect somewhat because volume is not involve. A resultant profit of course will be generated thus causing a pendulum effect of swaying to and fro. This movement is now being monitored and considered as the bias of the pairs and everything starts from there. There is no mentioned of correlation whatsoever. I admire you putting all those charts and whatnot but that is not what this is all about. Perhaps further reading might help, here are the links:

Simple Trading Method with trader101

Signals for Simplicity - Page 53

Indicators development for T101's not very simple method.

T101 external IA Monitor

And I think there is still a lot more thread and forums and website that discussed this method that maybe I am not aware of. This will give you a better understanding and knowledge of the method. However if all of this explanation still bothers you can always PM or E-mail me. If I have use words strongly , I apologize in advance.

Julius

 
4051fx:
@Pipscorer Curiously Julius! When you get profit over 2 years, did you notice another signal to make profit like correlation above, or just same rule on tendem that you post on First Page?

Hello again 4051,

I really appreciate your curiosity in this method, well you are in the right path as many are already enjoying the 1000 of pips they profitted and still continue to follow all those thread and forum as off shoot of this method. Again we must understand that there is noe correlation here, i keep hearing that, the jump pairs technique was based on pair behavior not correlation. Yes there are a lot of ways to profit in this method.

1) The jumping pairs techniques --Tandem Trading Method

2) The 14 pairs straight trading ---Basket Trading Method

3) Groups of USD, JPY & Middle ---Group Trading Method

All of this is currently availabe and are being used by a plenty lot. Page 1 mentioned about jumping pairs a lot since this is the first method that i perfected in the years. The rest just follow as my study evolve. All of this techniques were available even at the start when i introduce the sytem.

4) All mentioned here are Part 1 of this method. This method still continues to the Part 2 - The Optimization of profit and Part 3 - Targetting 15,000 pips a week.

I hope i made a clear explanation but PM me if you want more answers.

Julius

 
tagada:
As far as I got it, and please Julius correct me if I got it wrong, this method has 3 phases, the last of which we still don't know about -at least, I. The main trading method in Phase 1 is to trade all the 14 pairs in the same direction (optimization can be made on a discretionary basis with two pairs among the 14 to be traded the other way around; see the IA to detect those mavericks), and the "jumping pairs" method is basically for you to use when you get bored waiting for the 14 pairs trade setup to take place (Julius described it as a "scalping method at the beginning of the market"). Phase 2 is about correlation and pairs (JPY pairs, USD pairs and Middle pairs) and is to be used in ranging markets, so 4051fx I think you have your answer here .

Slade made a first approach regarding the EUR/JPY domination, although Julius stated that the real leading forces were USD and JPY. He conceived the system, I guess we must accord it to him a little here, musn't we?. Leialex: why do you take USDCAD in your charts? It's no longer in our Universal pairs -could you be so kind as to keep the universal stuff universal, please? Just for the sake of our overblowned minds I wouldn't have mentionned it if it wouldn't have taken such a huge part in the blue squares of your correlation map.

By the way, for those who might wonder how this sets have been constructed, Julius said we could also trade with only 10 pairs (although it would be less rewarding/efficient):

Set 1 Set 2

GBPUSD EURCHF

EURGBP GBPJPY

GBPCHF AUDUSD

AUDJPY USDJPY

EURJPY EURUSD

With this, the original setup and the universal one, it looks like you have all you need to figure it out (I won't try, but that could be nice to see how one constructs this, just in case the actual universal pairs wouldn't balance in the future).

@ Julius and ram: glad to be helpful.

Tagada,

I think this post is responded already by the last 2 posts.

Cheers

Julius

 

Julius,

I studied your method and tried it out in demo. I had 2 winnining trades. but some questions rankle in my mind:

1.

suppose after a few hours of starting the indicator (7 sell trades & 7 buy trades) the anchor on the buy side is gbp/jpy showing a profit of 500 pips. now you say that what the anchor flips to the loss side, u can enter short all 14 pairs. the flip will happen only if gbp/jpy makes a reversal and moves downward for several hunderd pips. If we now enter short, isn't it very likely that we are entering short at the exhaustion of the down trend and could be stuck with a loss...how does one guard against that OR am I missing something here?

2.

I tried something else that you taught:

when 5 out of 7 pairs in upper half were buys, I concluded that the bias was long and went long all 14 pairs. made about 600 pips.

after 3 hours, I opened 0.2 more lots of 7 sells and 7 buys to confirm if the trend was still intact. in a few minutes the new positions drifted to join the respective half of their own pair of 0.1 lot opened earlier. this confirmed the trend was still intact as u say. now, seeing 10 buys and only 4 sell in the upper half, I went long all 14 pairs. in minutes I was seeing a loss of about 2000 pips...I am confused.

kindly guide.

thanks.

 
pgd:
Julius,

I studied your method and tried it out in demo. I had 2 winnining trades. but some questions rankle in my mind:

1.

suppose after a few hours of starting the indicator (7 sell trades & 7 buy trades) the anchor on the buy side is gbp/jpy showing a profit of 500 pips. now you say that what the anchor flips to the loss side, u can enter short all 14 pairs. the flip will happen only if gbp/jpy makes a reversal and moves downward for several hunderd pips. If we now enter short, isn't it very likely that we are entering short at the exhaustion of the down trend and could be stuck with a loss...how does one guard against that OR am I missing something here?

2.

I tried something else that you taught:

when 5 out of 7 pairs in upper half were buys, I concluded that the bias was long and went long all 14 pairs. made about 600 pips.

after 3 hours, I opened 0.2 more lots of 7 sells and 7 buys to confirm if the trend was still intact. in a few minutes the new positions drifted to join the respective half of their own pair of 0.1 lot opened earlier. this confirmed the trend was still intact as u say. now, seeing 10 buys and only 4 sell in the upper half, I went long all 14 pairs. in minutes I was seeing a loss of about 2000 pips...I am confused.

kindly guide.

thanks.

Pgd,

Reading from your post a lot is a mess in your trading style. I suggest that you really read all those threads on the post i attached above. Also you must remember that not all our trade will be winner a lot of them will be loser as well. This is no grail mthod. Waht we are doing actually is reducing the losses and maximizing the wins. Also i have notice that you have issues on your entry, this is easily overcome by all those indicator we now have, We have indicator that clearly now analize the market before we enter, also indicator that will provide us a good reentry to the market should we are stopped out. Also that loss of 2000pips could have been avoided should you hav ethe EA that protect your account and profit if the trade goes against you. All mentioned here are located in the threads linked.

Thanks

Julius

 
PipScorer:
Hello again 4051,

4) All mentioned here are Part 1 of this method. This method still continues to the Part 2 - The Optimization of profit and Part 3 - Targetting 15,000 pips a week.

I hope i made a clear explanation but PM me if you want more answers.

Julius

Let us jump to Part 3 now! Even trading nano-lots I will be happy with the returns! Can't blame if many feel the same looking at the possibilities.

I am following from FF thread and trying to trade live with nano-lots. So far so good. My understanding is that unless there is constant observation and feel for the movement of pairs it is difficult to trade solely depending on indicators. Could be risky even with nano-lots!

Could some one suggest a nanolot broker for this system please? Lite-forex is damn slow .FxOpen is alright. I am very unsure about Master-Forex.

One more stupid question of mine after seeing the latest developments at the other Forum on indicator developments and such similar enhancements, is it possible to trade the whole Basket as it is? that is 7 buys and 7 sells? Since this is not a perfect hedge there should be movement enough to take advantage of. It may not be as profitable but could be safer because of the hedge involved? Or reversing Buys & Sells?

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