trend catching with NonLagDot indicator

GJ

AJ

CJ

​it wasn't a signal from the system so forget it. Was one different trade.

Thank you SmoothTrader. That's right. I appreciate Lebaneese and other helpful people like you , who help others to improve the trading system.

green pips to all of you

I think you're realizing that the basket isn't a diversification of the risk, but rather, an amplification of it (i.e, higher leverage). It's like if I were trading 1 contract of each of the e-mini futures. They're too highly correlated overall so it's really just one big leveraged trade.

A diversified basket would trade a major Forex pair, an e-mini, each of the commodity futures, U.S. bond futures, different emerging markets, etc.

There's nothing wrong with having a leveraged basket as long as you know that's what you're doing.

Thank you for solving this great mystery for me, my good sir!

God bless

I have to disagree with you to a point. Even though all the contracts within the basket are of the same class, ie currency pairs, that does not mean that they are all highly correlated with each other. There are some groups of pairs that show almost no correlation with each other. Does that mean they can never move in the same direction at the same time, no of course not, but it is highly unlikely.

There is also the question of the correlated pairs in the basket. They serve a very valuable function as well. I will use the EUR as an example. If a trader believes that the EUR will strengthen he has a choice of pairs to trade. He could purchase 1 lot of EUR/USD for example, or he could purchase .2 lots of EUR/USD, .2 lots of EUR/GBP, .2 lots of EUR/JPY, .2 lots of EUR/AUD, and .2 lots of EUR/NZD (disregarding the pip value of each pair in the example, actually assuming they are all equal which they are not). With the purchase of 1 lot of EUR/USD, the trader has all of his leverage in the one pair alone. If the USD happens to be even stronger than the EUR, he would lose money. With the "Basket" of EUR pairs, the trader has equal leverage (1 lot), but spread among 5 pairs. While his EUR/USD would also lose money, his other 4 EUR pairs may make money for him.

There is in fact a leverage multiplication factor, as you stated, IF the trader assumes that each and every pair will act independently (uncorrelated) of all his other pairs in his "Basket." I encourage all traders to look at the worst case scenario when it comes to their "Baskets." By that I mean look at your drawdown if each and every pair in the basket hit their stops and determine your position size based on your risk comfort levels.

While I have had every basket go to profit, so far, that does not mean that they will ALWAYS go to profit. I have to be prepared financially and psychologically for the time it doesn't go to profit. Do I continue trading as if nothing happened, do I stop trading for a day or week and study why it went to its stoploss, do I reduce my lot size and start over? These, and more, are some of the questions the trader might ask himself. Actually it's good to ask them ahead of time, and write down the answers as a form of trading policy.

Those traders that are prepared, ask tough questions, write down the answers, and continually study themselves and the markets will be the ones that turn FX trading from a novelty or hobby into a profitable business for themselves.

I wish GREEN pips to each and every one of you, but they tend to flow in greater abundance to those that invest in themselves and work for them.

Jan 12th ,2016: Anyone trading the Asian Session tonight?

VPS running NonLagDot EA trade basket being managed by the CloseTrades EA. The set files used are enclosed.

Some significant factors.

1. All EA's are running on the basis of close of trades with NonLagDot change color hence some larger WMA values.
2. Stop Loss is not predicated on swing points but specific values
3. Running Equity value on top left chart in blue, Account Balance in red. CloseTradesEA attached.
4. CloseTrades EA will shut down all operations at $500 TP or SL as a basket.
5. Each EA has optimized values for that chart.
6. Basket has just started trading.
7. Entry points on charts allow for spread plus 1 pip.

I usually start my day after Tokyo opens, so 5 minutes and counting.

GREEN pips to one and all.

I don't see any trigger bars at the moment Smoothtrader. How about you? What are you focusing on tonight during the Asian session?

Now that the daily Chinese nonsense is done, I'm just going to let the market tell me what to trade.

I follow a core of 10 pairs on the 30 minute time frame.

I'll probably check back in in an hour.

GREEN pips and good hunting.

USDJPY just triggered!

EURUSD Has also triggered!

USDJPY Chart:

clean sell on usdjpy, I see south coming papi

Thank you, much appreciated.

​Good morning all. I see u have nice trade from UJ and I see many other trades that are in good profit also. these days Asian session is active.

GJ

EJ