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

This is a 14 day demo of the currency basket tester.
It requires Metatrader 4 to operate.

Please watch the two movies at Forex Gear - Basket Tester
which explain how to operate and set up the basket tester.

Have fun,

Coder

EDIT: *********** NEW VERSION ***********

1/ Import and chart your open MT4 trades.

2/ Added the ability to test non-currency MT4 symbols.

Remove old version.
Copy the new EA via the 'Settings' menu to MT4.

Coder

Attached Files

Setup.zip (2.72 MB, 81 views)

Here are some interesting currency baskets. Low draw down and good profit.
I'm looking for a basket to grid.





Coder

it looks interesting, but does it only test 1 order per pair during the whole period or can you also use a more complicated strategy like running an EA on it?

Hello jlpi,

It only tests one order per pair.

There are a few different strategies that I use. I'll write about some of them now.

[STRATEGY 1] - Buy & Hold
This can be a very profitable strategy if you enter at the right time.
First, find a basket that is trending strongly, with low draw down.

Next work out the average draw down of a basket, then enter when it draws down
to that level again. Basically, buy dips in the equity.
Example: GBPUSD,USDJPY,EURCHF posted above.

[STRATEGY 2] - Basket Grid Trading
Find a basket that is trending strongly, with low draw down, or a basket
that is ranging in a tight range. Grid the trend or range.

[STRATEGY 3] - SWAP
Find an interest positive basket that has low draw down.
It can be either trending or ranging, but it must have low draw down.
Example: EURTRY,USDJPY posted above.

Coder

Hello,

There are two more updates that I'm adding to the tester.

The first is the ability to import and chart the equity movements of
my current open MT4 positions.

I want to know the equity direction of my whole account, and how the equity is moving on a daily basis.
If it is starting to go down, I can work out what pair to add and in what
amount to reduce the draw down.


The second is to allow other instruments besides currencies to be
included. Examples are Oil and Metals. I've already had a look, but
it needs more work. It's not as simple as it looks.

Coder

Hi Coder,

i download the demo program and its not funtion?

zu si fu

Hello zu si fu,

Please watch these flash movies. They will show you how to set it up.
You have to configure it to work with Metatrader 4.

Configuration
Basket Tester Configuration

Software Demo
Basket Tester Demo

If you still have problems, please contact me at:

support@forexgear.net

Coder

*********** NEW VERSION ***********

1/ Import and chart the equity of your open MT4 trades.

2/ Added the ability to test non-currency MT4 symbols.
Examples: Oil, Metals, Stocks, Futures, Bonds etc....

Remove old version.
Copy the new EA via the 'Settings' menu to MT4.

Find the Setup.zip in the second post of this thread.

Coder

Hello,

Would someone who is interested in currency baskets please contact
me to arrange for an evaluation to be done.

Thank you,

Coder