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-   -   Basket Knights - A Basket Trading Round Table (https://www.forexfactory.com/showthread.php?t=943338)

TyLamai Aug 24, 2019 10:34am | Post# 1

Basket Knights - A Basket Trading Round Table
 
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This is a FREE, NON-COMMERCIAL thread. Nothing here is for sale.


Definition: Basket trading is the combining of two (2) or more currency charts into one (1) offline chart and subsequently trading these pairs in alignment.

While this definition is deliberately simple, basket trading is by no means newbie-friendly...and so is this thread. If you are new to all this, please read up and catch up with us later.

Basket trading is certainly not a new concept. You can do your own research to find out more about "basketting". NO LINKS to other basketting threads would be posted here nor would they be entertained if posted by any member. The reason for this is that I would not want this thread sent to the commercial section of ForexFactory.

Popular baskets include (but are not limited to): The Core3, Core5, Core10, Core12, Core12-2, Core14, AUD basket, CAD basket, CHF basket, EUR basket, GBP basket, NZD basket, JPY basket, USD basket, etc., etc.

The reason for setting up this thread is to create a place where basket traders can congregate, rub minds together, and share insights from the perspective of the basket trader.

I will be sharing the following as we move along:
- My core basket chart
- How I create the offline chart I trade from (and the tools I use)
- What I look for before opening trades

This is NOT a trade signal site/thread. We can trade together if you are inclined. What I want is for everyone to get up and running with the offline chart of their choice, dress up their offline charts with whatever indicator they feel comfortable with (I don't care how many), and then share their trade setups with the members if they like.

So, open your trades and then manage them. No wrong or right way. Arguments about gurus, heroes, villains, godfathers, whether trading on live / demo accounts, proof of income, requests for putting up TEs, and the like would frankly not be entertained. TRY not to be rude okay. Let's agree to disagree - we are different, and we see differently. Period.

One last thing before we move on:
If you are posting a set up based on your own indicators, EAs, etc., etc., kindly explain to us what you look for on your chart before pulling the trigger. That way, we can all be on the same page.
If you see someone's set up that you like, please ask that person nicely to share. If he or she refuses, please move on. No rancour.


My Core Basket Chart

I trade from the Core5 (C5) H4 basket. The C5 basket consists of the following pairs: AUDJPY, EURJPY, GBPJPY, GBPUSD, and NZDUSD. I also trade the C12 basket.

Just for reference, MY C12 basket consists of:
AUDJPY, AUDUSD, CHFJPY, EURGBP, EURJPY, EURUSD, GBPCHF, GBPJPY, GBPUSD, NZDJPY, NZDUSD, and USDCHF which I mostly trade in reverse.


How I Create the Offline Chart I Trade From (and the Tools I Use)

#1. Download and copy the attached files to their proper locations. Each file has been placed in their proper folders for your convinience and includes all the basic tools I use: Templates, Indicators, Scripts, and Files.

#2. Right-Click on your Navigator tab and select Refresh (or simply restart your MT4 platform).

#3. Open any currency pair's chart and drag the ForceLoadHistoricalData.ex4 (Script) onto it. (Wait for it to complete its work. You can view its progress from the "Experts" Tab below your screen). Once done, close the chart.

#4. Open a blank GBPJPY H1 file.

#5. Apply the ! Ty's_BasketCreator_Phase2_(H4+H1+m15 of Core5, Core14 and Core12) template over the GBPJPY H1 chart. This will create H4, H1, and m15 offline basket charts EACH for Core5, Core12, and Core14 baskets.

When you apply this Template, it will turn your GBPJPY H1 chart into a "Blank" chart but you can access the Input parameters of the Basket_Create_v3_670et indicator(s) by Right-Clicking on the chart and selecting "Indicators List" as usual.

#6. To open the Created C5/C12/C14 offline charts: From the Menu bar, go to File >>> Open Offline >>> And right at the TOP of the List you should see the following offline charts:
#TyC12#12,M15
#TyC12#12,H1
#TyC12#12,H4
#TyC14#14,M15
#TyC14#14,H1
#TyC14#14,H4
#TyC5#05,M15
#TyC5#05,H1
#TyC5#05,H4

*Note: For the offline charts to function properly, the GBPJPY H1 chart with the Basket_Create_v3_670et indicator MUST remain open.

#7. If you want MORE history candles on your offline chart, play around with the "MaxBars" parameters of the Basket_Create_v3_670et indicator on the GBPJPY H1 chart.

*Please note that PREVIOUSLY we used the Basketv8 new format(C5) offline chart creating indicator but errors have been observed and we subsequently discontinued its use. Fortunately we have the source code of that indicator and I would like to seize this opportunity to APPEAL to any interested coders in the house who'd like to help us out to kindly review and update the code of the Basketv8 new format(C5) indicator so that it works seamlessly. (The source file for the indicator is included with the attached files below).


What I Look for Before Opening Trades

After opening the #TyC5#05,H4 ofline chart, right-click on it and place the attached Template over it (named: ! Ty's_BasketKnightsThread_with-TidaneTrendAlert_+_HeikenAshiAlert(2,6,2,9))

Now you should have something similar to the sample Image depicted below.

Since I trade from the C5 H4 basket, I tend to open baskets in the direction of the H4 Tidane Trend (Red = Sell the C5 basket. Green = Buy the C5 basket).
To execute a C5 Buy/Sell I simply use the 0.01_Buy_C5/0.01_Sell_C5 Scripts attached to Open C5 trades. (Simply drag the Script onto a blank chart and Voila! it opens trades in ALL the five pairs which make up the C5 basket).

*Note: The SAME process applies when trading the C12/C14 baskets. Just use their respective Scripts.

There are MANY ways to take re-entry trades. Using the HeikenAshi arrows is just one of them.

I set my profit targets manually depending on what the market dictates.

When I am done trading I close all trades either individually or collectively (by dragging the CloseAll_Mod Script onto a normal chart then selecting the type of Closure I want - this is depicted clearly in the dialog box that appears).

That's it.


In Conclusion

Most of what is required to trade the basket is already here. Anything omitted would be added down the line.

If you find all this interesting, subscribe to this thread and come along on this adventure - it should be worth your while and fun (at the least).


Regards and stay fluid,

Ty Lamai

-------------------------------------------------------

*Go to this post to see how I discuss placing of Stop Losses: https://www.forexfactory.com/showthr...3#post12476663
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BasketKnights - A Basket Trading Round PHASE 2.rar

TyLamai Aug 24, 2019 10:35am | Post# 2

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Do not be fooled into a false sense of security or premature optimism...

Note that NOT EVERY Basket signal is a win - just like every other system/method there are losses too. The ADVANTAGE of trading the Basket is that you only make a move when the market is BEST positioned to offer you an edge to make a profit. To even BETTER my edge, I chose a long time ago to only trade in the direction of the H4 (yes, I do take reentry trades from the H1 sometimes but always in line with the H4 trend direction determined by the Tidane Trend indicator). Think of it as going into battle as either a SINGLE individual or going into battle as a COALITION or GROUP of individuals. I'm sure you get the point.

Trading the Basket requires HUGE patience!

Attached is a Four Hour (H4) C5 Basket chart...As you can see, based on my chosen entry indicators, a downtrend has been in place since the 16th of July, 2019 and remained in place only until yesterday (as you'll see in the next chart I'll post which is a more current chart)!

There was also a number of reentry opportunities in case you missed the first main entry zone.

Stay tuned for more basketting nuggets.


Regards and stay fluid,

Ty
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TyLamai Aug 24, 2019 10:35am | Post# 3

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My C5 H4 is now signaling a Buy Basket trade (until further notice). *Image attached.

I have a number of ways to take advantage of this fact:
#1. Open Buy trades at once.
#2. Wait for a retrace and open Buy trades (safest option) but I stand the "risk" of being left behind - which may or may not turn out to be bad.
#3. Zoom into the individual pairs and look for the best zones to enter the Buy trades individually.
#4. Access ALL the C5/C12 pairs individually and then target the "stragglers" (i.e. the pairs that are I think/feel are either yet to take off, or are slow in taking off) - I can also choose to concentrate on these pairs only (what I refer to as Selective Basketting) and heap all my intended lots on these.

The same can be done with whatever type of basket you trade.

Frequently you'll see/find me doing all of the above. I reserve my "ammunition" so that I can have MULTIPLE positions if and when the opportunity presents itself.

Finally, you may choose to do things differently - there really is no wrong or right way - choose YOUR style, learn from everyone and everywhere.


Regards and stay fluid,

Ty

NB:
There are Fundamental considerations to be aware of too (if you are into fundies, that is). I generally try not to attach too much weight on what the News Calendar forecasts' - the reason is that, from experience, the news can go EITHER way in the short term which is often enough for me to hit my TP
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fmsfx Aug 24, 2019 10:44am | Post# 4

Excellent!!! Subscribed

TyLamai Aug 24, 2019 10:54am | Post# 5

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My C5 H4 is now signaling a Buy Basket trade (until further notice). *Image attached. I have a number of ways to take advantage of this fact: #1. Open Buy trades at once. #2. Wait for a retrace and open Buy trades (safest option) but I stand the "risk" of being left behind - which may or may not turn out to be bad. #3. Zoom into the individual pairs and look for the best zones to enter the Buy trades individually. #4. Access ALL the C5/C12 pairs individually and then target the "stragglers" (i.e. the pairs that are I think/feel are either yet to...
Allow me to elaborate on points #3 & #4. Below's a practical example:

The following C12 Pairs were supposed to be Buys (*except GF) along with the C5 Buy signal BUT...notice that they were SLOW in taking off in that direction...?

EURUSD (*Amazing discount on this pair after the C5 signal to buy, but while I was typing this it was already heading up wickedly and hit my TP shortly after - I hear I have Trump and China to thank for that. No worries, I'll take it!).

GBPCHF (*Some people omit this pair when trading the C12 Basket - Others simply reverse it. What I do is guage it's position once the C5 basket signals a direction. In this case I opted for a Sell based on what I saw as Price exhaustion and I did not regret it as it too has already been banked).

NZDJPY (*As you can see while I was typing, Price dropped viciously down, so now I'll use my reserve ammo AS LONG AS the C5 H4 Tidane still remains a Buy).

NZDUSD (*Same as EU above).

*See the screenshots below depicting the Point where C5 became a BUY/LONG Basket and possible areas of reentry on these individual "straggling" pairs (*all charts are H1).

When I see these types of opportunities, I load up/heap more lots than usual on these pairs because from experience what I am witnessing is a really good entry opportunity.

So far I have banked +224 pips. Now all I have to do is watch the C5 chart for continuation or exits. No need to over complicate issues.

I hope someone gets this.


Regards and stay fluid,

Ty
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TyLamai Aug 24, 2019 10:56am | Post# 6

Excellent!!! Subscribed
Thank you fmsfx, You are welcome.

Regards and stay fluid,

Ty

TyLamai Aug 25, 2019 12:18pm | Post# 7

Hope everyone's having a great weekend so far.

Preparing for market open: So far my C5 H4 is still signalling a Buy basket - that means my basket bias is Buys only.

So, at market open one of two things will happen:

#1. Opportunities for Buy re-entries at better prices using my reserve ammo

Or

#2. C5 H4 switches and signals a Sell basket in which case I'll close the remaining Buy baskets trades and open my Level1 sell basket trades.

We'll see how it goes.


Regards and stay fluid,

Ty

TyLamai Aug 26, 2019 2:58am | Post# 8

Hmmmm...I see we've been moved to the Interactive Trading section of FF.

Ok.

TyLamai Aug 26, 2019 3:12am | Post# 9

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So, at market open one of two things will happen: #2. C5 H4 switches and signals a Sell basket in which case I'll close the remaining Buy baskets trades and open my Level1 sell basket trades.
So Option #2 was what I woke up to see. And I did EXACTLY what I said above.

My point is: As hard as it may be to "believe" what the C5 chart is telling you, just do it (Nike?). If the new basket goes my way, the "loss" of the previous basket will be nothing. Also: My following the C5 Tidane direction removes the need to second-guess or over complicate issues.

I got a Net loss of -215 pips from my previous Buy basket. (+224pips Gain - 439pips Loss)

C5 H4 has signaled a Sell basket, so I will only be selling the basket pairs untill further notice. (See attached image).


Regards and stay fluid,

Ty

*Note: Fundamentally (for those who follow fundies), a Sell basket would be prefarable to a Buy basket in "this season" of Trade wars and the like...but remember: The guys who move Price really do not care either how so take everything at surface level and manage your risk (that's basically the only thing YOU can control).
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fmsfx Aug 26, 2019 7:56am | Post# 10

I closed my Long B10 for a loss on Friday for -190 pips and a few hours later open a Short when I got home. The gap down over the weekend help that basket and I closed it down for just under +500 pips. I was targeting a cluster of weekly H/L's and thought it would be worth about 300'ish pips when/if it reached that area.

This what it looked like at the open.

https://gyazo.com/fd7810099e86029dc79217095e9d8885

After I closed it down when it reached those H/L's

https://gyazo.com/00ba1003879e53ac40d0fb51fb3215a3

TyLamai Aug 26, 2019 9:55am | Post# 11

I closed my Long B10 for a loss on Friday for -190 pips and a few hours later open a Short when I got home. The gap down over the weekend help that basket and I closed it down for just under +500 pips. I was targeting a cluster of weekly H/L's and thought it would be worth about 300'ish pips when/if it reached that area. This what it looked like at the open. https://gyazo.com/fd7810099e86029dc79217095e9d8885 After I closed it down when it reached those H/L's https://gyazo.com/00ba1003879e53ac40d0fb51fb3215a3
Great trades fmsfx! Please keep 'em coming.

Your trades seem to correspond with my C5 H1 chart. Nice.


Regards and stay fluid,

Ty

TyLamai Aug 27, 2019 2:04am | Post# 12

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Sell Basket = +293 pips and counting...
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TyLamai Aug 27, 2019 2:32am | Post# 13

I closed my Long B10 for a loss on Friday for -190 pips and a few hours later open a Short when I got home. The gap down over the weekend help that basket and I closed it down for just under +500 pips. I was targeting a cluster of weekly H/L's and thought it would be worth about 300'ish pips when/if it reached that area. This what it looked like at the open. https://gyazo.com/fd7810099e86029dc79217095e9d8885 After I closed it down when it reached those H/L's https://gyazo.com/00ba1003879e53ac40d0fb51fb3215a3
After Banking your +483 pips! yesterday, were you able to get a good Sell Basket reentry zone for more pips?


Regards and stay fluid,

Ty

fmsfx Aug 27, 2019 6:50am | Post# 14

{quote} After Banking your +483 pips! yesterday, were you able to get a good Sell Basket reentry zone for more pips? Regards and stay fluid, Ty
Daughters birthday party and missed the re-entry to the short basket. Always another trade so no big deal.

Dave

TyLamai Aug 27, 2019 7:57am | Post# 15

{quote} Daughters birthday party and missed the re-entry to the short basket. Always another trade so no big deal. Dave
I agree, there are always pips to be made.

Happy Birthday to your daughter.

Regards and stay fluid,

Ty

mrgreen Aug 28, 2019 12:37am | Post# 16

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Good to see a basket thread. Using the Currencies Index (ie DXY ), News, Sentiment, etc. I select which direction I will trade for the week and add to trade as I go into profit. Currently am long USD.
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TyLamai Aug 28, 2019 4:15am | Post# 17

Good to see a basket thread. Using the Currencies Index (ie DXY ), News, Sentiment, etc. I select which direction I will trade for the week and add to trade as I go into profit. Currently am long USD. {image}
Welcome aboard mrgreen, great to have you here.

I like your angle to trading the basket. Hope to see you elaborate some more when you can (like how you determine the direction to trade while viewing the DXY).

Happy basketting.

Regards and stay fluid,

Ty

TyLamai Aug 28, 2019 5:41am | Post# 18

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+802pips banked so far on the current C5 H4 Sell Basket (+60pips Banked yesterday, +742pips Banked today)
+276pips still floating...
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fmsfx Aug 28, 2019 6:34am | Post# 19

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Good pipage Ty. I'm right behind yah.
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TyLamai Aug 28, 2019 7:13am | Post# 20

Good pipage Ty. I'm right behind yah. {image}
Great job!


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