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Old 08-05-2008, 09:03 PM
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Quote:
Originally Posted by omelette View Post
The basket is:

"EURJPYb","AUDJPYb",
"EURUSDs","EURAUDs",
"USDCHFb","NZDUSDb",
"EURGBPs","USDCADb",
"GBPCHFb","EURCHFb",
"AUDUSDs","GBPUSDb",
"CHFJPYs"

The 'b' and 's' stand for Buy & Sell. Same lot-size used for each...
Omellette


You will find that your basket will be all over the place as it's not really relative to Dollar strength or weakness.

Sure AUDUSD & USDCAD & NZDUSD & EURUSD & GBPUSD are but the rest, not so.
The Dollar will have some bearing however. For exmple EURGBP is a mix of EURUSD and GBPUSD, CHFJPY is a mix of USDCHF and USDJPY and so on.
This is why I choose, with this strategy to ignore these pairs as generally GBPUSD & EURUSD tend to travel in the same direction mostly. So if both Euro and Pound are either strong or weak, where does that leave EURGBP ?
A little bit sideways.
I tend to use that particualr pair if I am looking to trade Either Cable or Euro, just to ascertain which is likely to move the better.

I hope this helps
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