Hello Traders,

I’m an active trader and software developer and have decided to commercialize some of my trading tools.
The first tool that I am releasing is my ‘Currency Basket Tester’ which is compatible with Metatrader 4 brokers.

It costs € 70.00 and is available from my website Forex Gear - Basket Tester
There is a 14 day demo available for download in the next post.

A currency basket is a combination of currency pairs which are bundled together and viewed as a single instrument.
The basket's equity will fluctuate based upon the movements of the underlying currency pairs.

The characteristics of the currency basket can be altered by adding or removing currency pairs, changing the
trade direction of the pairs, and adjusting the amounts of each pair traded.


Example: Hedging EURTRY
EURTRY pays $46.34 swap per day. To place a 1 Lot trade will cost $168.52 with ODL Securities.
The trade exposure is Short -100000 EUR and Long 171860 Turkish Lira.

Running a back test on the equity, including swap produces a drawdown of -$10,861.14 and a maximum profit of $27,628.92



Now we have to find a way to reduce the 10k draw down.

The 10k draw down occurred between July-August 2007. What happened during that period? The sub-prime mortgage crisis where the
carry trades were hammered. So what would happen if we also sold 100,000 USDJPY?



he swap has now fallen to $34.55 per day. The trade cost has risen to $185.99.
The exposure has changed considerably as we are now exposed to four currencies.
The most interesting thing is that the draw down has been reduced to -$5919.02 and the maximum profit is about the same at $27,940.48.

So by adding an additional trade, we have reduced the effects of future (sub-prime / carry trade unwinding) risk on our basket.

Are there other combinations that would produce more profit?
Could the draw down be reduced further?
What would happen if I also added a Long EURUSD 50,000 to the basket?
How does the basket look over a longer time frame?

These are the questions that the software can answer.

The software can save the charts as JPEG files, so please post your baskets below so we can discuss them.

Have fun……..

Coder