Thread: Basket Trading System (T101 system)

Simple Trading Method (Basket Trading Strategy)

I introduce this system in the other forum and quickly it become a phenomenal ground breaking methodology and created a buzz in the Forex world, and feel compiled to introduce this also here in this Forum.

Ive been been playing this method for about 3 months now after a 2 years collecting data and observing ccy pairs behavior and started trading this live and the return is quite good. This is a very simple method and it is all base on price action, indicator free trading and it is done manually.

First you have to open a demo account (Indicator Account –IA) and make sure that the broker you choose have the ff. pairs (must have) in their platform:

Most brokers have the following Pairs.
1. GBPUSD 8. CADJPY
2. EURGBP 9. AUDUSD
3. GBPCHF 10. USDJPY
4. CHFJPY 11. EURUSD
5. AUDJPY 12. EURCHF
6. EURJPY 13. GBPJPY
7. USDCHF 14 USDCAD

If you are using the IBFX Platform below are your pairs to Hedge:
1. GBPUSD 8. EURUSD
2. EURGBP 9. USDJPY
3. GBPJPY 10. AUDUSD
4. USDCHF 11. NZDJPY
5. NZDUSD 12. GBPCHF
6. AUDJPY 13. CHFJPY
7. EURJPY 14 EURCHF

The first seven pairs is set 1 and the second is set 2. These pairs will hedge each other. Fresh start this method at the very beginning of the week, this will give you a good look at the pairs as weeks goes on. Set 1 trade them SHORT and set 2 trade them LONG. No SL and no TP. As much as possible run a script (attached) so as to maintain correct timing in opening them. Click twice the profit column of your terminal so as to make the positive profit pairs stay at the top and the negatives stay at the bottom or vice versa. Initially the order of this pairs is a mess, let it run for a day or two and you will notice the pairs will start to make a proper order. All the buys will stay at the bottom and all the sells will occupy the top or vice versa. It like putting to rest the dirty bottled water and it will start to settle down after a certain period and all the dirt to the bottom and the clearer water at the top.

About a day or two, all the buys (if negatives) will stay below and the sell (if positives) will be at the top. Now the indication that you should watch is, ideally the bottom 7 slots should be occupied by the negatives, the first pair in the negative that crosses the boundary of positive and negatives is the pairs we are concern. If one of the negative jump to slot 8 (counting from bottom) there is also a corresponding positive that will jump to slot 7. This is one of our signals. We can trade those two pairs that jump out of boundary. There are ways of watching and trading this pair as they start jumping slots. I called this method the Jumping Pairs Technique. There are also numerous variations associated with jumping pairs that I will discuss later in the thread. Another profitable method of trading is the trading of 14 pairs straight Buy or Sell, criteria of which I will also discuss in the later part of the thread.

You should have another account where you real trading will be executed. You can trade the two pairs that jump out. If the pair that jumps up is LONG then trade the two breakaway pairs LONG or vice versa. I also trade the next two pairs that jump of the boundary. I limit myself to just 4 pair’s max 5 pairs being traded at one time. The profit is up to you, what I do is when the pair I’m trading retreats a slot or 2 slots then I close it. Or sometimes I just leave and the Profit Protection EA does the watching of the trade.

Remember do not touch your demo account as this will serve as your indicator and keep it running all the time and just check it once in while for any jumper pair and then trade them.

On the attached terminal copy, you can see the breakaway pair USDCAD and was traded and make some pips on it. Consequently the other pair GBPUSD also jump 1 slot down and can also be traded Long as well.

There will be many more setup as we go along.

I hope i explain it well. Good Luck trading,
Trader101

Note:
1) this method is manual.. Again manual... Indicator is fine.
2) I am trying to avoid any EA being made out of this system, indicators are welcome.
3) To those who will benefit from this method, my only request is to GIVE CREDIT TO WHERE CREDIT IS DUE this is given unselfishly free. Pipscorer/Trader101
PS: For advance reading go here:
Simple Trading Method with trader101

Hello pipscorer. This is a really interesting system based on price action. Innovation at its finest.

Originally Posted by Segyem

Hello pipscorer. This is a really interesting system based on price action. Innovation at its finest.

Thanks for your kind words. There a lot of innovation that one can do if we trade it this way. Beside having the IA i also have an Excel spreadsheet DDE to my broker for me to get the most updated data from my broker. I attached the image of the Excel here and i have put colors to pairs that i am trading. Red being the Sells and Green being the Buys. As the trading progresses, you will that there is a little fight between the Sells and the Buys (Red and Green) if who are going to occupy the top or the bottom spot. I sort the data every once in while so i could see how the pairs are moving. With these pictures i could analysis and determine where it the direction of each and individual pair.
Thanks
Julius

Originally Posted by PipScorer

Thanks for your kind words. There a lot of innovation that one can do if we trade it this way. Beside having the IA i also have an Excel spreadsheet DDE to my broker for me to get the most updated data from my broker. I attached the image of the Excel here and i have put colors to pairs that i am trading. Red being the Sells and Green being the Buys. As the trading progresses, you will that there is a little fight between the Sells and the Buys (Red and Green) if who are going to occupy the top or the bottom spot. I sort the data every once in while so i could see how the pairs are moving. With these pictures i could analysis and determine where it the direction of each and individual pair.
Thanks
Julius

Could you post the excel spreadsheet and tell me how to link it to my trading platform? What do you mean by saying "I sort the data every once in a while"? Thanks in advance.(I think this system would prove to work overtime.)

Hi T101,

I have been following you thread at FF since day one (despite never posting a single message on it).

Your strategy is rather a good one and needs to be tested by everyone.

Something I do not understand : Why don't you suggest to trade all 14 pairs in one direction, as it was the best rule if I recall correct....instead of trading only the couple of pairs that break the fence ?

Cheerios

Originally Posted by niepce

Hi T101,

I have been following you thread at FF since day one (despite never posting a single message on it).

Your strategy is rather a good one and needs to be tested by everyone.

Something I do not understand : Why don't you suggest to trade all 14 pairs in one direction, as it was the best rule if I recall correct....instead of trading only the couple of pairs that break the fence ?

Cheerios

Opps too fast, bro,
I just started this thread and i want to go slow, eventually i will go in there because that is the most profittable scenario for now i just want to feel how readers of this forum react to such new concept. If the reaction is favorable then I am intending to make this as my HOME thread and continue what i have started there. I am hoping here, that readers here will be more contriburatory than confrontational and more building up than destruction. Thanks bro for your reply.
Julius

Originally Posted by Segyem

Could you post the excel spreadsheet and tell me how to link it to my trading platform? What do you mean by saying "I sort the data every once in a while"? Thanks in advance.(I think this system would prove to work overtime.)

Segyem,
I am glad that you show interest in such a simple system, I acoul dnot find the files that you are asking for right now but is you have time i would recommend further reading of this sytem in this link :Simple Trading Method with trader101. There are also other thread in that forum that keeps on opening by readers who feel that they should explore more about this sytem.
Regards

Hi Julius,

I saw your system on FF, it have nice results thanks for sharing it here

Regards
Alan

TNX for sharing this great system,
I've read through the rules and want to ask if I got it right.
The position is long we buy all 14 pairs, but first we wait till some of the BUY orders go in to profit to execute the orders.

Originally Posted by zvezdolet

TNX for sharing this great system,
I've read through the rules and want to ask if I got it right.
The position is long we buy all 14 pairs, but first we wait till some of the BUY orders go in to profit to execute the orders.

You have to double clik the profit column such that all positive profit at the top of the column and the negative should be at the bottom. If you are interested to play the 14 pair straight, You have to wait the Anchor pairs (The topmost or the lower most pair) to be dislodge by a different color pair the same thing with the lower anchor pair. If the top anchor is Blue pair and being dislodge by a red pair then your trade will 14 pairs SELL. To do this, you can edit the Tradehedge Script by replacing it to all SELL then compile. If the bottom Anchor pair is red and is being dislodge by the blue pair then your trade will the your trade will be SELL. This setup if the safest way to trade the 14 pairs straight. Some agreesive trader just wait for 2 pairs to jump to the other territory they trade the 14 pairs straight. The 14 pairs straught play is the trading of all 14 pairs one way. Either SHORT or LONG. If you need further reading visit this:
Simple Trading Method with trader101
Good Luck.
Julius