This is actually close to Nanningbob's Sixths Lines countertrend trading method.
NNB's method is based on the assumption that price should come back to its median line when it gets really far away.
Steve Hopwood has developped an EA for this method (TOB : "The Old Beast").
It works well with ranging pairs, but when a trend develops you can get in pretty bad DD.
Our 2-correlated-Pairs baskets are supposed to be much more "stable" than individual pairs, and we can clearly see that from the Profit Basket indicator, where the profit line goes up and down very slowly compared to regular pairs movements.
So, if we would be using "TOB" / Sixths method on these baskets, we should be in much better situations, don't you think so ?
We should give it a try...
That would require to adapt TOB to use the Basket instead of an individual pair.
Steve, any thoughts on this ?
Sq
NNB's method is based on the assumption that price should come back to its median line when it gets really far away.
Steve Hopwood has developped an EA for this method (TOB : "The Old Beast").
It works well with ranging pairs, but when a trend develops you can get in pretty bad DD.
Our 2-correlated-Pairs baskets are supposed to be much more "stable" than individual pairs, and we can clearly see that from the Profit Basket indicator, where the profit line goes up and down very slowly compared to regular pairs movements.
So, if we would be using "TOB" / Sixths method on these baskets, we should be in much better situations, don't you think so ?
We should give it a try...
That would require to adapt TOB to use the Basket instead of an individual pair.
Steve, any thoughts on this ?
Sq