This strategy intentionally trims the biggest loser and opens an opposite-direction trade on the same pair whenever at least three losing pairs have breached their 24-hour high/low.
The way this is done is quite restrained, such that overtrimming is avoided. We want to do just enough trimming that we allow the same market action that triggered the trimming to take us to profit.
So do not be alarmed when the first actions taken by the EA make your balance shrink. If you are patient, a rise in equity will occur and all trades will be closed for profit.
There are old-school elements to this strategy, such as diversification (14 pairs), cut your losses early (cut the BIGGEST loser when market action makes it a logical decision), and let your winners run (until you come into profit).
Basket_14 was developed before Confirm_14. Basket_14 uses less specific criteria in looking for confirmation. It looks for a total of 3 currency pairs among the 14 to be breaching their 24-hour highs/lows before trimming and reversing a biggest loser.
Attach to only one chart, any symbol, any timeframe. Don't worry about opening other charts. You only need to open ONE.
Version 02 does not have the MinMiniEquity and MinStdEquity settings.
Version 03 uses two seven-pair relative vigor index (RVI) indicators to try to increase the frequency with which we get to profit without trimming and reversing.
Version 04 looks for five samples of RVI main to be above/below zero, cleanly separated across the two groups of seven pairs, to decide which group to buy/sell.
Version 05 has buy/sell logic based on RVI main/signal crosses above/below zero
Settings for Various Leverage Levels
Leave the settings as-is for a 200:1 leverage account.
Set MaxMarginToUse to 2.0 for a 100:1 leverage account and leave ProfitPct at 1.0.
Set MaxMarginToUse to 3.0 and ProfitPct to 0.3 for a 10:1 leverage account. This may seem risky but most of us will want to push risk if we get restricted to 10:1 accounts. Even with this risk level, you shouldn't see Lowest Margin drop much below 200%.
For my 50:1 demo, I am using MaxMarginToUse at 3.0 and ProfitPct at 0.75. So far it's working fine.
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I think, overall profit/loss is less compare to the Gross Profit and Gross Loss. anyway of reducing the losing trades and may be trailing the profit trades?
The current state of my Basket 14 demo: it has booked 7% profit in less than a month. It currently sits in a superbly hedged state, all 14 pairs open. The market can do whatever it wants and the account will not suffer. When there is significant change in the market, good actions will be taken. Further profits will come.
Thank you for sharing this great strategy. I am wondeing if I can use this EA with my own manual trading? Would attaching the EA affect my own orders or vice versa? My suspicion is NO and that you have the magic number take care of that, but just want to make sure. thank you for your patience and your time.
I wouldn't be able to answer any issues you might have related to unpredictable results if you choose to mix usage of the EA with your manual trades. But if you believe you understand all the issues, go for it.
A nice thing is that sometimes we get into profit without any trim'n'reverse actions.
That might seem odd because the two groups of seven pairs represent a perfect synthetic hedge. But across this many pairs, distortions do happen as all pairs can move independently.
So I just uploaded version 03, which uses two seven-pair relative vigor index (RVI) indicators to try to increase the frequency with which we get to profit without trimming and reversing. No guarantee that we won't have to trim and reverse with this approach, but at least we tip the odds a little in that direction.
How it works is: the group of 7 that shows the stronger RVI is the group that we will sell, and we will buy the other.
It shouldn't matter which group we initially buy or sell, as long as we always buy one group and sell the other. However, since there are observable imbalances at times, we might as well attempt to find which side to be on if in fact it could make any difference at all.
The nice thing is -- the cut'n'reverse scheme is stable and has proven time and time again to nudge the basket toward profit, even though it sometimes takes some patience to get some wind in the sails via strong market action. This element alone will get us to profit regardless of which side is bought vs sold. It's just that we want to get our profit faster if possible. Nothing wrong with that, is there?
