I've been trading a basket of 15 pairs but feel more thought needs to be put into my choices. My basket was in effect 5 minibaskets of 3, which would be made up of 3 currencies and their crosses eg. EURUSD, EURJPY, USDJPY. To my reckoning, this kept a balanced holding of various currencies, and by having a total of 15 pairs, there was less volatility in the equity curve. However every time one pair made substantial gains, they would be tempered by another pair somewhere making solid losses. In the end I felt the basket was achieving results by way of slight gains month by month, but now I'm looking to reduce the number of pairs in my basket or otherwise fine tune it to get better results.
So to all the basket traders out there, care to share what you put in your basket and why? You don't have to explain your trading system in detail, but a short description of your rationale for choosing the pairs you did might be helpful to me and others out there that trade with baskets.
So to all the basket traders out there, care to share what you put in your basket and why? You don't have to explain your trading system in detail, but a short description of your rationale for choosing the pairs you did might be helpful to me and others out there that trade with baskets.