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Simple Trading Method with trader101

  • #2,121
  • Jun 18, 2009 7:28pm Jun 18, 2009 7:28pm
Account Protection locking mechanism and other details on the attached image. One column is for those trading standard and the other column for those trading micro. If you are trading a higher lot you need a special EA for protection of your profit, please contact me.
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  • #2,122
  • Jun 26, 2009 12:35am Jun 26, 2009 12:35am
Hi T101,

Thank you so much for the great strategy. Its been three years since i had made any consistent profit and broke 1000's of dollars many times until i started trading with your strategy.

You are a trader god, it is definitely the level 2 of the trading.

To the newbies and experienced trader who are starting now. Just please stick to the "original" method.

Other traders have interpreted their own way of trading T101. But, they are subjective in that they suit them to most extent not everyone.

The "Original" is the most objective method suitable for everyone.

As T101 himself has stated, Orest indicator is the closest he has given his hand to, so we can follow that.

Just trading the jumping pairs from orest is enough.

Just increase your lot, so it will match up to your lost pips from trading the whole basket etc.

Dont go back to indicators just the dashboard is enough to compliment T101. May be lator i will change my mind but as starting out, dont know

it seems good enough the way it it started it

Thanks again...T101...If you come to Manila anytime....I will but you san miguel
  • #2,123
  • Jun 26, 2009 12:59am Jun 26, 2009 12:59am
how do you account for pairs such as the EurGbp where pip value is 16$ per pip vs the usual 10$. Err I mean which pair is supposed to balance against the Chunnel? (EurGbp)
  • #2,124
  • Jun 26, 2009 4:03am Jun 26, 2009 4:03am
Quoting spiderforex
Hi T101,

Thank you so much for the great strategy. Its been three years since i had made any consistent profit and broke 1000's of dollars many times until i started trading with your strategy.

Great to know that you are successful with this method.
I would love to have your ideas and inputs often along with examples. I have been trading this method for some time (on and off). I want to start Live with a small account.
I have found out that Orest indicator, Basket Indicator and BuySellBasketMomentum are the indicators are indeed very helpful in trading. My observation is that one should look at H1 trend or higher.
Initial swap of 70 odd pips is a deterrent for taking 50-50 trades.
"Put all your efforts in becoming effortless"
  • #2,125
  • Jun 26, 2009 9:30am Jun 26, 2009 9:30am
Quoting IamTHAT
Great to know that you are successful with this method.
I would love to have your ideas and inputs often along with examples. I have been trading this method for some time (on and off). I want to start Live with a small account.
I have found out that Orest indicator, Basket Indicator and BuySellBasketMomentum are the indicators are indeed very helpful in trading. My observation is that one should look at H1 trend or higher.
Initial swap of 70 odd pips is a deterrent for taking 50-50 trades.
Hi,

I was working for the last three day's 24/7 on this method .

All the indicators were made between august and December period last year, the most explosive time for forex, probably in a decade when all jpy pairs going down.

Then since 2009 the market seems to have changed and the volume happened only on certain days as is the norm.

you are right, IMHO, It is probably best NOT to scalp but to stick to original method.

As told by t101 just working with 2 to 4 pairs is good enough, if one wants to profit simply increase the lots. The important thing for me is a consistent profitable method.

Im looking basket bars v1.5 for 4H timeframe

========================

Since, Morning today, i was sell GBPCHF as shows in the IA monitor, but as i was testing, i tried scalping 15 minutes and lost mostly with buyall sellall method lookng at the strength and movement of indi as it went up and down, up and down, all through asian and UK seesion.

right now, the market has got some volume and the sell GBPCHF has been good which was indeed what IA demo showed since morning.

I think newbies will really have a hard time going through all shoots of the original method and getting confused.

Please stick with the first post nothing else is really required, no need to read all post, if you reading this

=================

I'm now seeing GBPJPY sell and see how it does, im late in entering but as its high volume market i will go for it now
  • #2,126
  • Jun 26, 2009 10:39pm Jun 26, 2009 10:39pm
Opps Sell GBPJPY went up, but GBPCHF stayed its ground..need more practice
  • #2,127
  • Jun 27, 2009 9:33am Jun 27, 2009 9:33am
Hi Spiderforex, IamTHAT, & all,

I too am right in the thick of figuring out 101's method.

Thank you Trader101,, Julius, what you have shared with us is truly remarkable.

I find reading through the thread(s), including Brijon & some others related to the T101 method, to be really confusing. Also, I'm not interested in EA trading, nor discussion about it. I like to trade manually. Discussion centered on perfecting a EA, or a script, or an indicator, causes me to question if we're trying to learn a particular trading methodology, or are we trying to program a computer.

I ask, is there any interest in discussing analysis, thought process, signals & what they might mean as well as what to do about them, like trade it or not, and if so, in what manner. And without devolving into the best way to get a EA to do this or that.

There's a hell of a lot of information provided by this method and its IA indicator. I just am hitting & missing as to what it all is telling me. Guessing. I figure more heads are better that one, particularly mine. Just as well to do it on this thread, as that was T101's original intent & all the information discussed prior is right here.

I'm not trying to hi-jack Trader101's thread, just trying to continue some dialoge & discussion on how this thing works & WHY. And I hope Julius would take the time to check-in from time to time and offer his guidance.
Its his method. He developed it. He knows it, by virtue of all the time he's spent perfecting it.

The secret here is the entire market (the basket) and how the individual pairs interact. All the signals are there...right in front of us. All we need to learn to do is read them accordingly. I think sharing thoughts, ideas, and trading success (and failure) will speed us into either finding or in developing the Rosetta Stone for the T101 method.

At the moment, I've taken the pairs (all 14) and seperated them to individual currencies, which is what they are in real life. I'm trying to figure how each interacts compared to all the others as the trading day & week goes along. The pairs are the vehicle. Discerning strongest vs weakest currencies, or strongest & weakest vs certain other currencies, but not neccessarily others, translating that into which pair(s) is the most effective to accomplish this and deciding how to trade from there.

I'm using CindyXXXX's back tester and have modified it to analyse data, seperate the currencies & then put them back together. Interesting.

T101's IA shows that the market is finite at any given point in time. Because of the running total of the gains, we see that the market ebss & flows, but usually comes back to even. Project that out a week or so, shows the market's overall strength or weakness. Buy side gain shows a bias toward increase. Sell sid toward decrease in trend. Its what happening within the basket is where all the profif is. And that's what I want to learn & that's what I want to discuss here. Any takers?

Thanks for reading this.
And thank you, Julius, Trader 101
  • #2,128
  • Jun 27, 2009 1:35pm Jun 27, 2009 1:35pm
Hello Peter,

You have contributed 2 postings in this thread so far and both of them have displayed intellect and sense. This post will try to respond to all of your questions if I am unsuccessful just keep writing me and I will do the same.

Since the introduction of this system, I was not fan of creating an EA for two reasons:
1) No EA can duplicate the discretionary nature of this system and,
2) Ea makes us lazy even to read the theory behind the system.

Some people keep rubbing it since the beginning as well and since this is a free public forum readers have no choice but to read those post.

The selection of 14 pairs for hedging is painstakingly done base on the theory that was first popularize by Mr. Kreslik, The Impeccable Hedge Theory. I have made some trial and error until I came up with the greatest number of equal pairs that a platform can offer. Thus the 7 buys and the 7 sells. These pairs will somewhat hedge each other in terms of direction but not necessarily of volume. In this manner I can create a maximum deviation in the group of currency pairs that represents almost the cross section.

This deviation forms the central part of this system. A keen traders intuition will give a good observation of the pair movements both short and long term and thus can take advantage and ride the pairs that has the most potential to travel from 1 slot to another.

Pairs that travel the most distance in my observation are the GJ and GU on one side and the EG and GC on the opposite side. I call these pairs the Extremes and watch them closely in and equal interval. The movement of these 4 pairs also hints us the overall market direction. Over the week these pairs will runs to its spot and sometimes settles on that spot for the whole week, thus giving is the indication that the market trend is steady and strong. Many more observations and patterns are developing if you really put yourself into it.

The trouble with some traders is that they lack the tenacity to get deep into the heart of this system rather create an EA to do it for them. Even the simple openings of the IA every week become a burden to most of them. Thus the Orest indicator was born. Myself, I still continue doing the old ways of opening the IA every week because this gives me the real market situation.

I could not remember how many Ea were attempted to replace the system and did become successful in a short period and then quiet after sometime due to changes in market dynamics. Up to now I am still not a fan of EA creation for this system.

The best tool that we develop for this system i think was the excel spreadsheets that monitors and record the gains and losses of individual pairs, the group of pairs etc. In there we could create a graphical representation of currency moves that guides us in our next trade. With these method and we are making good hits and about 80% of the members of the group are hitting the 1000 pips weekly.


Julius
  • #2,129
  • Jun 29, 2009 12:08am Jun 29, 2009 12:08am
[quote=trader101;2834052]Hello Peter,

You have contributed 2 postings in this thread so far and both of them have displayed intellect and sense. This post will try to respond to all of your questions if I am unsuccessful just keep writing me and I will do the same.



Thank you, Julius for taking the time for your detailed response to my inquiry. Lurking in the back of my mind is the question of how in the world this all came about.

I looked-up the work of Mr. Kreslick, not a whole lot out there, but read the blog several times. His study of correlation and perfect hedge irregularities concept ties in nicely with the core principal foundation of the Trader 101 method, that being the hedge protecting to overall basket but at the same time exploiting individual or collective elements which comprise that same basket.

I appreciate, too, you having taken the time to explain some background of the core concept upon which you've developed this method. Each day, I learn a bit more about the methodology. Every day, I'm a bit more comfortable.

I believe that one needs to merely keep at it, work with the IA demo, as that's really the whole method. The manner in which the pairs move around begins to look familiar after a while, I've found. I believe that this one isn't a case of being able to be effectively shown nor told how to trade the method, because trading is only a part of it. It's the individual traders reaction to the information provided by reading the IA demo which makes it all happen. The IA says what it says. How astute the trader may be in reading, or interpreting, or anticipating what is read is the success or failure in trading the T101. The method isn't flawed. But, the trader isn't perfect, either, but should strive to be.

Thanks Julius. I will be lurking around. I'm committed to conquering trading with your method. That you freely shared with the community the results of your hard work & long hours developing this method speaks volumes.

Thank you again, Trader101.

Peter O.
  • #2,130
  • Jun 29, 2009 1:39pm Jun 29, 2009 1:39pm
I am trying to understand this system for a week, but several doubts persist:
1. I have the demo account for the signal ready with Orest indicator operational;
2. When you refer a trade, this trade is to be put in the "live" account of the "anchor" pair that is moving according to the rules ? Or we put a Sell/buy of all the 14 pairs in the "live" account accordingly to the trend ?

appreciate a clarification.
thx
  • #2,131
  • Jun 29, 2009 7:49pm Jun 29, 2009 7:49pm
Quoting umine
I am trying to understand this system for a week, but several doubts persist:
1. I have the demo account for the signal ready with Orest indicator operational;
2. When you refer a trade, this trade is to be put in the "live" account of the "anchor" pair that is moving according to the rules ? Or we put a Sell/buy of all the 14 pairs in the "live" account accordingly to the trend ?

appreciate a clarification.
thx

Hi Umine.

Unfortunately, I am no expert on Julius' method, yet, not by any means. However, I invited discussion, and here you are. Thank you. I'll help as much as I am able, and will ask the same courtesy of you.

I am not understanding the nature of your question. Perhaps you would re-state it.

I'm not understanding what it is you ask at all.

I will invoke, however, that this method requires a high degree of intuition driven by experience. A mechanical system it is not. Traded by EA...I don't think so. Those can only be used as tools for your decision.

The deeper I've dug into this, the greater appreciation I have as to the effectiveness it has as a tool, and as well to the gentleman, Julius, Trader101, who put it together & offered it freely to the community.

Please re-state your question. I'll help you through as best can. Be a good exercise for us both. If we need help, I can't imagine that it wouldn't appear on it's own, but we if need to after it if necessary.... this is Forex Factory and I think anything is possible within this extraordinary group.

PeterO
  • #2,132
  • Jun 30, 2009 3:12am Jun 30, 2009 3:12am
Thx Petero. I will try to clarify.

My understanding of the system is that we must have a "signal" account with all the pairs - 7 of them short;the other 7 with long positions.
My doubts start here, because there are a lot of discussions here and I could not follow everything.

When and how to enter a trade ?
In a separate account?
With 1or 2 pairs or with all the 14 pairs?
  • #2,133
  • Jun 30, 2009 3:23am Jun 30, 2009 3:23am
Quoting umine
I am trying to understand this system for a week, but several doubts persist:
1. I have the demo account for the signal ready with Orest indicator operational;
2. When you refer a trade, this trade is to be put in the "live" account of the "anchor" pair that is moving according to the rules ? Or we put a Sell/buy of all the 14 pairs in the "live" account accordingly to the trend ?

appreciate a clarification.
thx
Apologies for butting in, T101. Many thanks for sharing your system, and although I am not live using this particular strategy just yet, I have been very profitable on demo.

Please allow me to respond here and correct me if necessary.


1. The Orest indicator is not strictly necessary, provided you run the script to open the relevant trades on your demo platform and let it run for a couple of days to get into the correct order. This is important because if the trades look in order immediately, there may be a change in direction coming shortly. Remember to sort the trades into profitability (profitable on top, negative trades at the bottom).

2. You should open all 14 pairs on the live account (which should be the same broker as your IA for consistency) in the direction of the pairs movement into profit, rather than just a few pairs which switch places. The main reason for doing this to my mind, is to provide a smoother equity curve as pairs in the basket are correlated, (you can check correlation via external source mataf.net if the mood takes you.)

T101, please forgive me if this is incorrect and correct me if necessary.
  • #2,134
  • Jun 30, 2009 4:35am Jun 30, 2009 4:35am
Limtz,

Thnx for your clarification. Now I understand.
As far as I understood, the Orest indicator can work in substitution of the "demo signal account". Is this correct?

Another issue to that I want to add to this thread is: why does we need all 14 pairs? Can we apply the same strategy for example in only 3 pairs?
Ex: EURUSD (buy), GBPUSD (buy) and EURGBP (sell) ? With those positions (or the other way round) all the pairs are hedged also.
  • #2,135
  • Jun 30, 2009 4:54am Jun 30, 2009 4:54am
Quoting umine
Limtz,

Thnx for your clarification. Now I understand.
As far as I understood, the Orest indicator can work in substitution of the "demo signal account". Is this correct?

Another issue to that I want to add to this thread is: why does we need all 14 pairs? Can we apply the same strategy for example in only 3 pairs?
Ex: EURUSD (buy), GBPUSD (buy) and EURGBP (sell) ? With those positions (or the other way round) all the pairs are hedged also.
Yes, the Orest indicator was designed so that you do not need to have the IA. However, it is my opinion that the IA is the better option as the Orest indicator still appears to have a few bugs and is very resource intensive.

As I mentioned before, you should use all 14 pairs as produces a much smother equity curve and will help alleviate sharp spikes. The major advantage of using a basket strategy is to help iron out the bumps in the road, which if you try both methods, you will find less bumps using all 14 pairs.

Remember, don't just look at your profits, also look at your losses.
  • #2,136
  • Jun 30, 2009 5:51am Jun 30, 2009 5:51am
Quoting Limstylz
Yes, the Orest indicator was designed so that you do not need to have the IA. However, it is my opinion that the IA is the better option as the Orest indicator still appears to have a few bugs and is very resource intensive.

As I mentioned before, you should use all 14 pairs as produces a much smother equity curve and will help alleviate sharp spikes. The major advantage of using a basket strategy is to help iron out the bumps in the road, which if you try both methods, you will find less bumps using all 14 pairs.

Remember, don't just look at...
thx again for your prompt help.
I have some other questions regarding the system which is much clear now for me.
1. What is the average time of a trade? (couple of hours or days)
2. What is the exit strategy? (target loss/target entry or reverse in the signal?)

thx
  • #2,137
  • Jun 30, 2009 6:07am Jun 30, 2009 6:07am
  •  Jey
  • | Joined Jun 2009 | Status: Market Slave-Overworked/Underpipped | 283 Posts
Hi friends,

I am a newbie trader and I would like to learn this Basket method. I tried downloading your tpl. and indicators but doesn't seem to get it working. Dont know why though. I am using a mini IBFX account had been demoing for abt. 4 weeks. Can someone help?

I need to know which is the proper templates / indicators that will let me have the IA 14 ccys - mine is having something like 30 over ccys!! Not sure where I went wrong.... Thanks.

If someone could help email me, much appreciated!

[email protected]
I have seen the enemy, and it is me.
  • #2,138
  • Jun 30, 2009 6:29am Jun 30, 2009 6:29am
Quoting umine
thx again for your prompt help.
I have some other questions regarding the system which is much clear now for me.
1. What is the average time of a trade? (couple of hours or days)
2. What is the exit strategy? (target loss/target entry or reverse in the signal?)

thx
Duration of trades can vary from days to mere minutes, depending on your PERSONAL targets or exit strategy. I have been experimenting with waiting for a jostling of negative trades trying to get back into profit, but generally, I set the EA provided and leave it to run.

Experiment for yourself. This thread is designed to make you think for yourself. T101, did the groundwork, you need to polish it up and make it your own.
  • #2,139
  • Jun 30, 2009 6:31am Jun 30, 2009 6:31am
Quoting Jey
Hi friends,

I am a newbie trader and I would like to learn this Basket method. I tried downloading your tpl. and indicators but doesn't seem to get it working. Dont know why though. I am using a mini IBFX account had been demoing for abt. 4 weeks. Can someone help?

I need to know which is the proper templates / indicators that will let me have the IA 14 ccys - mine is having something like 30 over ccys!! Not sure where I went wrong.... Thanks.

If someone could help email me, much appreciated!

[email protected]
Read the first post again buddy... Then take a look at the newbie threads here at FF. Perhaps that should be the other way round. This basket strategy should not be used without a thorough understanding of the basics of both Forex and the metatrader platform. Do your research first before trying to use this.
  • #2,140
  • Jun 30, 2009 8:55am Jun 30, 2009 8:55am
Quoting umine
Limtz,

Thnx for your clarification. Now I understand.
As far as I understood, the Orest indicator can work in substitution of the "demo signal account". Is this correct?

Another issue to that I want to add to this thread is: why does we need all 14 pairs? Can we apply the same strategy for example in only 3 pairs?
Ex: EURUSD (buy), GBPUSD (buy) and EURGBP (sell) ? With those positions (or the other way round) all the pairs are hedged also.


Just my 2 cents...

Limstylz response is right-on.

But, as I see it, one can trade one or 2 or more pairs as you see fit according to the demo indicator, comprised of the 14 pairs.

The demo has those specific 14 pair because it makes up a hedge, but not quite a perfect one. The +/- movement of the total profit gives you the general trend of the market.
Break down the buy side + sell sides & use those totals against the 14 pair total to give you idea if the market is expanding or contracting, but leaving the total static or moving up or down. It tells you where the money is going at the moment.

Further, those 14 pairs are a balanced play of USD vs JPY, and to a lesser extent GBP, but combine both GBP & USD against the JPY & you'r in balance again, as to strength of the market. Tells not only "what", but "who" as well.

Break those pairs up & you've got 3 long JPY, 3 short Jpy, 2 long USD, 2 short USD, 2 long GBP, and 2 short GBP, and a misc. of other pairs to complete the l/s placement & balance the hedge.

Looking at this aspect shows if one currency is stronger or weaker than compared to the others. You then determine what pair best to be traded to exploit this situation.

There's a lot written about this method. But the whole deal is all in post #1. Trader101 developed the method & spelled it all out for us. No magic here. Just need to read & learn & demo & keep it up. The whole method is your own reaction to what the demo IA is telling you.

Good luck
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