Hello Guys
It is Christmas time so I want to share an indicator I use with my basket trading.
This is an adaptation of the original iexposure indicator + the mebreakeven indicator and most of the work was done by my friend Sergei.
It helps me see my exposure in lots, to see the break even point for each currency in each direction
and then I can use this information to determine if I should intervene or not.
Why do we need an indicator like this?
Because a currency pair could be in draw down by a few thousand pips but the combined lot size could be small so our exposure is small and we can let the pair recover by itself. Also, for example the break even distance could be close by, so -ve trades could recover in a day or 2 on their own.
THIS VERSION PROVIDES DETAILED INFORMATION ON OUR EXPOSURE TO A PARTICULAR CURRENCY AND IT WILL BE USEFUL IN IDENTIFYING SITUATIONS WHERE A CURRENCY HAS BEEN TRADED TOO MANY TIMES.
FOR EXAMPLE WE COULD BE SELLING THE CHF IN 5 PAIRS AND NOT REALIZING THAT EVEN A MILD MARKET CRASH COULD RESULT IN THE SUDDEN APPRECIATION OF THE CHF AND THE DESTRUCTION OF OUR ACCOUNT.
Deals=Open Market Orders
B-Pend= Number of Buy Pending orders
S-Pend= Number of Sell Pending Orders
B-Net= Total of Net Lots of BUY orders
S-Net= Total of net lots of SELL orders
Buy-BE= Break Even Distance of BUY orders
Sell-BE= Break Even Distance of SELL orders
Net lots= Total size of open trades after adding and subtracting BUY+SELL orders
Profit= Profit or loss
EQUITY RISK @ 1000 PIPS= Potential equity loss if all our open positions moved 1000 pips against us
SINGLE CURRENCY RISK= This is a +ve or -ve number and it shows how many times we have traded a particular currency.
This indicator version was customized for a particular basket trading strategy so this +ve or -ve number also considers pending orders
and it will add or subtract BUYs from SELLs and visa versa.
In other words if the AUD was bought 2 times in pairs AUDUSD and AUDNZD
but it was sold 2 times in EURAUD and AUDCAD then the number will be CURRENCY RISK NUMBER will be 0
If the AUD was bought 2 times in pairs AUDUSD and AUDNZD
but it was sold 4 times in EURAUD , AUDCAD, AUDCHF and AUDJPY then the CURRENCY RISK NUMBER will be -2
Good luck
It is Christmas time so I want to share an indicator I use with my basket trading.
This is an adaptation of the original iexposure indicator + the mebreakeven indicator and most of the work was done by my friend Sergei.
It helps me see my exposure in lots, to see the break even point for each currency in each direction
and then I can use this information to determine if I should intervene or not.
Why do we need an indicator like this?
Because a currency pair could be in draw down by a few thousand pips but the combined lot size could be small so our exposure is small and we can let the pair recover by itself. Also, for example the break even distance could be close by, so -ve trades could recover in a day or 2 on their own.
THIS VERSION PROVIDES DETAILED INFORMATION ON OUR EXPOSURE TO A PARTICULAR CURRENCY AND IT WILL BE USEFUL IN IDENTIFYING SITUATIONS WHERE A CURRENCY HAS BEEN TRADED TOO MANY TIMES.
FOR EXAMPLE WE COULD BE SELLING THE CHF IN 5 PAIRS AND NOT REALIZING THAT EVEN A MILD MARKET CRASH COULD RESULT IN THE SUDDEN APPRECIATION OF THE CHF AND THE DESTRUCTION OF OUR ACCOUNT.
Deals=Open Market Orders
B-Pend= Number of Buy Pending orders
S-Pend= Number of Sell Pending Orders
B-Net= Total of Net Lots of BUY orders
S-Net= Total of net lots of SELL orders
Buy-BE= Break Even Distance of BUY orders
Sell-BE= Break Even Distance of SELL orders
Net lots= Total size of open trades after adding and subtracting BUY+SELL orders
Profit= Profit or loss
EQUITY RISK @ 1000 PIPS= Potential equity loss if all our open positions moved 1000 pips against us
SINGLE CURRENCY RISK= This is a +ve or -ve number and it shows how many times we have traded a particular currency.
This indicator version was customized for a particular basket trading strategy so this +ve or -ve number also considers pending orders
and it will add or subtract BUYs from SELLs and visa versa.
In other words if the AUD was bought 2 times in pairs AUDUSD and AUDNZD
but it was sold 2 times in EURAUD and AUDCAD then the number will be CURRENCY RISK NUMBER will be 0
If the AUD was bought 2 times in pairs AUDUSD and AUDNZD
but it was sold 4 times in EURAUD , AUDCAD, AUDCHF and AUDJPY then the CURRENCY RISK NUMBER will be -2
Good luck
Have a nice day
