Continuation of T101 method discussions

I decided to open a new thread for us, the followers of the closed T101 thread to continue discussions about this method. It's sad that he decided to close such a wonderful threads. I believe that lots of people who has been doing forex for quite a while and have a few accounts blown up really appreciate his teachings and method including myself. He's like an answer to our prayers. I hope he doesn't mind me opening this thread.

It's not all the time we would encounter such a talented and gifted people who want to share. And just for free. He's very generous. It's cost him two personal good years before he can present to us. Anybody who want to show appreciation to him you can do it here.

T101, if you would rather me to close this thread please tell me. Off course you're invited to post or answer here if you want to.

For newcomers if you want to follow this thread you have to read this thread entirely first. This thread is like the continuation of the former thread I hope. Only corteous and polite adult are invited here. No name calling and rude words. Only intellectual discussions from enterprising people who want to succeed via good efforts, not kind of people who would like to be spoon fed like a child. We share among ourselves our experience and expertise. I don't claim to be expert in this method. In fact I am quite a beginner in this method. Don't ask me questions. But I see the potential of this methods and I hope we could continue from the last ones before it was closed. I hope this would be the avenue for continuation.

But anything discuss here would be strictly based on T101 methods of 14 pairs. No more asking for 2 pairs, 4 pairs or others.

Now I hope we can continue so that we can share or improvise the method of entry/exit and on the development of indicators/EAs. And to keep each other company on the most recent trends or developments.



My personal opinion of this method:
The first time I read this method immediately it attracted me because I see the logic. The movement of all major currencies pairs have relationship and affect one another. For me it's like supermarkets in a town. Every time a new supermarket is newly setup or some current supermarkets has clever tactics or techniques to attract customers, the sales of the rest of supermarkets will be affected. But we cannot count the sales of just one or two supermarkets to sum up the sales of the whole town. I guess.

In another note I see this method just like football playing 7 on each side. If we follow the overall movement of the team players we will win. If we only follow just one or two players who keep passing ball back and forth we will lose. I am no expert in economics or currencies. It's just my views.






Azzity.

I had an interesting thought about how to conceptualize what is happening when either the BUYS or SELLS are in control.

When the BUYS are in control, every pair in your basket must currently be trading "above the line" - which would be relative to the point in time that you opened up your IA, and which would be the exact price that you bought or sold that pair (ie. the dashed line that you see on your MT4 platform when you look at a chart of that pair), whether it was today, yesterday, or at the beginning of the trading week. The BUYs are above their line because they are in profit. The SELLs are above their line because they are losers (showing - $'s) and are thus really pairs that you could have bought and made money with.

If, however, the SELLS are in control, that must mean that every pair is trading below the line for that pair. Of course, its all relative - in that you have 14 different lines (1 for each pair). The SELLs at the top are in profit because they are moving down (below their lines). The BUYs are losers (showing - $'s) because they are actually below their lines and are thus really pairs that you could have bought and made money with.

But this is really what is boils down to...whether the pairs are trading above the line or below the line. If you dont understand, just look at all 14 charts when all BUYs are on top and all SELLs are on bottom, or visa versa.

Also, as I have previously mentioned on the main T101 thread, I see the IBFX basket as a EUR/JPY trade, with extra pairs thrown in their to hedge it out and smooth out the sharp edges of a pur EUR/JPY trade. But when you really boil it down, I think that you will see that the movement of the basket will roughly follow the EUR/JPY. This is because of the weighting of the basket. When you buy, most of what you are buying is EUR; when you sell, most of what you are selling is JPY.

Why not use the IA as an X-ray to trade the EUR/JPY? Its kind of the reverse of the basket trade, but I think it could work. I havent tested this idea yet, but in theory, it seems like one follows the other, so why not do it backwards?

In addition to trading the 14 pair basket, I am also focusing on the strongest pairs and trying to figure out a way to isolate them and trade them during the week. At least over the past 2 weeks (since I have been following this system), you can see that there are a few leader pairs that have really done most of the heavy lifting for the team. Just look at all 14 charts and you can see which ones moved the most (the pairs at or near each respective anchor). The ones that did not move much and chopped around will be the pairs at or near the center...unless there was a big move at the end of the week which put the pair in a place other than where it was for most of the week...which will happen. But otherwise, the idea is that certain pairs seem to dominate and control the session or the week. Why not trade these dominant pairs only, or give them extra weighting (ie. more lots), and less for those toward the center 0 line?

This is what I will keep watching - in addition to the core T101 method - especially when the volatility dies down.

Slade

I meant to say....

If the SELLs are in control...The BUYs are losers (showing negative $'s) because they are actually below their lines and are thus really pairs that you could have SOLD and made money with.

Slade

This is a good idea. I hardly ever posted on the original thread though I was keenly following it. I was missing the thread very much and now we have a place to exchange ideas and improvements based on the original method.

What I observed during demo trading is that approximate entry points can be derived from EURJPY chart (as mentioned by a member in the 101 thread).
VQ Bars indicator is also helpful in this respect. This can be used for scalping around 200 pips.

Sorry, slade posted above about EURJPY..

Instead of...

When you buy, most of what you are buying is EUR; when you sell, most of what you are selling is JPY.

I really meant to say:

When you BUY, most of what you are buying is EUR; when you sell, the result is that you are buying JPY.

Sorry for not being clear all at once, but I am still trying to get my brain around all of this myself, and it makes sense to me only after I read it a few times.

Slade

Even I am intending to do this along with the Kantor method (which died down due present market condition). I feel only these trading methods provide some confidence into trading. Even Kantor produced fantastic profits in a ranging market but it needs to improved.

Thanks

I use weekly IA. I mean start fresh every week.The way I do is to look at profitcalc. If say it says short (strong) I would look for short. But I wait for breakout from the most recent low. For target I use fibo expansion.

Nice idea fx21.

Slade, your comments about EJ sent me scurrying back to my history tab.

Trading the basket live this week, I made approx 3,565 pips ('approx' because I traded 0.01 IBFX nano-lots and I know that not all pairs are 1 pip=1cent). 444 of these were EJ pips - roughly 12.5%.

That is one hefty percentage. I am not sure how to use this info, but it will help focus my thoughts during the coming week.

Here is something I noticed, through watching baskets of live trades play out, and Carl's simulator. When a currency group, say gu\gj\gc, are grouped together then there must be a bias for or against, the first in the pair, in this case gbp. If the group occupies either extreme of the basket, that bias must be strong. This means that a group of buy trades grouped together at the top of the profits indicates great strength, at the other end great weakness. Maybe it is possible to use this to generate individual trades, using s&r as a guide to entry and exit?

One final offering, for now. My massive pips gain through basket trading netted about $35 - nice on a tiny account with a balance of about $330 at the start of the week, but where the method really helped was with individual GU\EU trades. I have been following the advice of experienced and successful traders to concentrate on just one or two pairs to try to get a feel for their movement.

The international downward spiral of currencies in general encouraged me to leave trades open for longer, setting wider tp's at more distant fib extension levels that I would normally do. Without the IA and the two weeks exposure to the trend as demonstrated by it, I would not have been so aware of the wider picture at the start of the week. I am a bit slow on the uptake, so I bet it would have been Thursday before I recognised what was happening. I would have missed a lot of pips.

The result was a fantastic week. The basket trades added roughly 10% to the account, but the individual trades added another 14%, and there were only 6 individual trades as opposed to umpteen in the baskets.

If only trading could always be this easy. All I have to do now is work out how to make money in ranging\choppy markets and my tiny account will be a real bruiser in no time.

Thanks Slade for sharing your ideas and insight. I hope more people would visit our place so that it can be alive.

slade, IamThat and SteveHopwood,

Thank you to be among the first contributors, welcome to our site. I hope more and more people would visit our site. As more and more people coming in, I hope, I won't have time to welcome everybody. Please make yourself at home as long as we can agree on the purpose and the manner as per post #1.

Now go ahead if you want to discuss anything with anybody and any ideas or insight to share. I would prefer to stay backstage unless I have anything to say, any ideas, somebody asking me directly and etc.

Welcome.


Azzity

Well to say the least, i didnt realizes i have tuched a lot of you guys, for that simple method that i shared to this community. Even myself was surprise about the reaction of the Forex Global Community for such an insignificant strategy shared here. If it has change your out look of Forex Trading, i am glad i was a part of it even for a short period of time. I am around and will be available should you need for inofrmation about my Basket Trading Strategy. I have been professing this for 2 years in my old journal "Simplicity is the Key" did anybody notices it?? Then i decided to move it in the Trading System and all hell broke loss...LOL...For now I am looking for a better stage to continue and complete what i have started for the willing, while avoiding the naysayers while convincing the skepticals. See you around and thanks
They might move this thread somewhere.. I dont think it should be here..
Julius

Thanks lord you're here.

Are you giving your greenlight? I mean in discussing your method here. And where do you think this thread should be.

Thanks a lot.

Azzity

I mean we the traders can discuss about your method and you're free to answer or post or not. It's not your liability since it's not your very own thread. This way it will not be stressful to you while we traders can still get the benefit of your method.

Or would you rather re-open your closed thread?


Thanks a lot

Yes you can discuss it if you like and i will just come in once in a while to correct if there are som erroneous explanation and explain it for the rest to understand like giving the correct direction. I wil also incluse your thread if i have some new topic to paste in the process of evolving the system. thanks
Julius

To that note, I will just carry on with this thread until further development. If there is anything about this thread please tell me.

Thanks a lot


Azzity

Thanks trader101 for your encouraging reply.

I draw your attention to one post in Programming section thread about brokers not allowing multiple positions being opened at the same time. Have you come across this problem so far? Is it likely to be a problem in future if everyone follows this method? What is the way out?

Once it happpend to me, but that was during volatile times(news release times). I think we should give our brokers the benefit of the doubt sometimes, we become so paranoid that we always think of them as cheating us, hunt our stops, deliberately do not want us to open position or close. In my live trading with this system, i may have some problems but nothing of the ordinary. This frame of mind when trading is not positive. Deal the problem with it happend and stop scaring your yourself of something from someone elses stories.
Julius

As long as the brokers allow us to basket trade, I think that we will always be able to exploit the edge provided by the basket method.

The FX market is just too big for us small traders to have any impact on its direction. Also, you can make a whole bunch of different variations of the basket, start and stop trading them at different times or intervals, increase or decrease the number of pairs in your basket, and you can trade uneven lots based upon strength/weakness. You can also tandem trade 2,4,6, etc. pairs at the same time. The rules for entering and exiting ultimately must be determined by the traders risk tolerance as well.

So, I wouldnt worry about it being duplicated to the point that it loses its edge, especially if you are able to innovate your own style within the system which Julius has already given us, which is something that he suggested early on.

Slade

Seems that there is no future of that system without T101.

Good luck,
Max

I think the reason this method keeps dying is because there are no real rules presented, nor clear understanding of it given.

While I appreciate 101 he really isn't able to be clear in his presentation of the method, and he doesn't like to "hand hold" or "spoon feed."

Well I'm sorry but that is what you are going to get asked for if you post your method on a forum.

Had he been clear in the beginning there would not have been the multitude of questions asking for clarity. Eventually, if nobody understands, one must come to the conclusion that either the students are stupid, all of them, or the teacher is not being clear.

He gave us a basic method, which people do not understand fully, and said how profitible it was, and then simply was unable to explain his method clear enough for people to continue with it.

Some very basic things are needed. When do you enter a trade either long or short? When do you close your trade? Especially important are these questions if not using all the EA's, scripts, Excel charts, etc.

Now what 101 would say is, "I explained that clearly in the very first post." Oh really? Then why are you getting hundreds of questions as to the basics of this system? Are we students all so stupid? Or could it be that the teacher is not being clear?

I do hope 101 will come back here. If he does, I could help him be clear simply by pointing out statements he makes that are very hazy and unclear. These statements spawn hundreds of questions which he could avoid, had he simply been clear to begin with.

(Yes, I read the whole other thread, and like most people, remain unclear)