I have a question about trading with baskets

[resiSaxtoa]

I know very little about "trading with baskets."As I understand, when operating with a basket, you have the possibility of softening the movement fluctuations of a single currency.I have an indicator that generates good benefits, but it is something volatile in terms of setbacks.The indicator works in Eurusd and GBPUSD.Does it make sense to operate a foreign exchange basket in the same direction?Should both long and short of that basket operate?If so, what lot sizes should you use?For example, if I receive a purchase signal for Eurusd, should you do this?: - Buy EUR/USD - BUY AUD/JPY - SELL GBP/JPY - BUY USD/CAD - SELL EUR/CHF - SELL NZD/CAD - BUYGBP/AUD - Buy NZD/CHF Any help would be great!Thank you

[akesxxesna]

This: - Buy EUR/USD - BUY AUD/JPY - SELL GBP/JPY - BUY USD/CAD - SELL EUR/CHF - SELL NZD/CAD - BUY GBP/AUD - BUY NZD/CHF It is equal to: +EUR -UDD+Aud-JPy -GBP +JPY +USD-CAD -Eur +CHF -NZD +CAD +GBP-AUD +NZD-CHF Result: Zero.All pairs in this basket are canceled with each other.What are you trying to achieve?

[resiSaxtoa]

Thanks, Maxx.I am trying to find a way to improve my setbacks operating a foreign exchange basket in the same direction as Eurusd, but with less volatility.I saw this on the Internet: according to this, we operate our basket.In case of a USD USD (USD with score above 50

[TesiSesSod]

Yes, it is a good idea because you distribute your operations, making it more difficult for market manipulators to turn your operation into a loss.Operating with baskets is probably the only way in which a retailer can succeed in the long term, yes, I said it, and it is probably true.In addition, you can try your initial idea and close when the benefit is positive even if it is a bit, and open again and again.Unlike what Maxx says, it is not a perfect coverage unless you use specific amounts of operations such as those allowed by Oanda.Sometimes you will notice that you float even if you seem covered.The key is to observe the used margin: if it is not zero, you are exposed.Open/close 100 operations for about two weeks could generate 10-15% benefit while the worst scenario could be -2%.It is necessary to evaluate whether this is viable in the long term, but at least it is a strategy without open losses.If you want to be directional, I would still recommend you use baskets.Download a basket indicator, there are many in the forum, and so you can operate the basket as if it were a couple of foreign exchange, but using the Eurusd as a guide to know when to enter and leave.

[resiSaxtoa]

Thank you, it seems that there are many ways to address the "baskets" strategy.The description you mentioned about "Open/Close 100 operations in about two weeks to obtain a 10-15% benefit while the worst scenario would be -2%" is a perfect goal for me.You mentioned some EAS in the forum that could review and manipulate its code.Any suggestion about where to start?Thank you!

[resiSaxtoa]

Does anyone have a good directional EA indicator for baskets you want to share, please?Thank you

[estonoes288]

Hello, I was reading your other thread on Scalping in Eurusd.I am very interested in what you are doing and I have a lot of questions for you.Could you send me a private message with your email?I can't send you messages directly.Thank you!

[resiSaxtoa]

Operating baskets seems to be interesting, but I still don't see how it can be consistent.Can anyone explain in detail how to avoid wear of the commissions and the spread in so many small operations?I am thinking that perhaps the approach is too complex to obtain a real gain.Perhaps simplicity remains the key in this.What do you think?

[TarroTk38]

Simplicity is important, but the baskets have their place.If you distribute the operations and control the risk, you can reduce the general exposure and soften the losses.On the other hand, yes, the spread and commissions can accumulate quickly.The key is to choose the pairs well and not overshadow.Try to start with few currencies in your basket.

[Odiesrrrrd]

Baskets to reduce volatility?It makes sense, but the question is whether you really understand how currencies interact in the basket.Mixing currencies without a solid correlation analysis could make your results worse.Instead of putting up a random list of pairs, try to use tools that help you understand the correlations.There are many free online.Have you tried that?

[resiSaxtoa]

Thanks for the answers.I have not deepened so much in the correlations, but it seems that it is something I must work on.I'm going to look for tools to analyze correlations and see if I can adjust my basket based on that.I would also like to hear how others handle this aspect.

[jttotrunu]

I have used baskets before, but with a clear rule: I choose pairs that move together but in opposite directions.This helps mitigate risk.As for the correlations, I recommend TrainingView.It has good graphics to analyze relationships between currencies.

[esbreshesC1407]

Do you want to assemble baskets but do not understand the correlations?It sounds like a recipe for disaster, friend.Do not offend yourself, but better return to the basics.Learn to read the markets before complicating yourself with advanced baskets and strategies.

[resiSaxtoa]

I understand your point, but I think part of learning is experimenting with new ideas.I do not expect perfect results immediately.However, I see that I need more knowledge in correlations and risk analysis.Thanks for your sincerity.

[vurbor]

Experiment is fine, but remember: Each error costs you money.Learn in demo before risking real capital with complex strategies such as baskets.It is easy to get excited with new ideas, but patience and practice are key to survive in this business.

[esizaka]

Personally, I prefer to operate with a couple of currencies at the same time and master it before considering something like baskets.Why complicate yourself so much if you can make money more directly?But if you really want to try, keep the size of your small lots and consider using an EA to manage operations.

[resiSaxtoa]

Good idea.I think I will try an EA to handle the baskets.That should help reduce emotional load and keep organized things.Does anyone have free EAS recommendations you can try?I would like something basic to start.

[esdrugiesjo7]

Test "baskettrader" of mql5.com.It is basic but functional to understand how the baskets move together.Remember: EAS are tools, not magical solutions.You will need time to configure it and learn to use it.

[vesSdos81]

Be careful to trust EAS too much.Many rookie traders get into trouble to depend on them without really understanding the strategy behind.Learn to operate manually first.Only after considering an EA to automate what you already dominate.

[resiSaxtoa]

I understand it, but my idea is not to depend completely on the EA, but to use it as a tool to try baskets while I still learn.Anyway, I will continue working on my manual analysis and use the EA only as support.Thanks for the advice.

[ResNesoSsaTk]

The problem with baskets is that, although it sounds great in theory, in practice you need a solid knowledge of the interaction between currencies and macroeconomic factors that affect them.Have you considered simply operating pairs with direct negative correlation instead of putting together a complex basket?

[zgzTesbSa]

Trading with baskets can be a great tool if you have enough experience, but for someone who is just starting, it can be overwhelming.Why don't you concentrate on a simple strategy first and then return to baskets when you have more confidence?

[resiSaxtoa]

I think they are right.Maybe I'm hurrying with this baskets.I will return to the basics for now and work on a simpler strategy.I appreciate all the advice.This forum really helps clarify ideas.

[odriNo94]

Good decision.Sometimes, less is.Learn to walk before running, as they say.When you feel that you are ready, the baskets will be waiting for you.Success in your learning!

[Vustesboxxtt]

I think we have all been in your place.It is easy to get excited with new strategies, but it is important not to hurry.Taking the time to understand the foundations will give you a solid basis to experiment with more advanced things in the future....

[cessesda]

It is a relief to see that you are willing to go back a bit to learn.That shows maturity as a trader.Remember that patience is one of the most important weapons in this business.When you return to the baskets, make sure you have a clear plan.The correlations and good risk management will be your biggest allies.

[Sorgy30]

Honestly, I think the baskets are overvalued.You could spend time you could invest in perfecting your entrances and exits in one pair.But everyone has their style.If this strategy really attracts you, advance with caution and do not overcomprome.

[odoSgesdac]

If you plan to resume the baskets in the future, consider starting with smaller baskets, such as three or four related pairs.It is easier to handle and learn.Also, it has a detailed record of how they work together.The documentation of your operations will be key to understanding what works and what does not.

[resiSaxtoa]

Thanks for the ideas.I think starting with smaller baskets would be much more manageable to me.It could be a good starting point.I will dedicate myself to building an operations record and better understand how currencies interact in those baskets.Thanks again!

[axdesCosTukos]

You're welcome, it's always good to see someone willing to learn and improve.Keeping a record is an excellent idea;The data does not lie and will give you clarity.When you are ready, come back here and share your progress.I am sure that more people will be interested in learning from your experience.

[cesyogesCbaes]

I used to operate with baskets and discovered that it was too much to drive.If you do not have a robust system, it is easy to miss among so many open operations.Now I prefer to focus on a single couple at the same time, but if you decide to continue with the baskets, make sure you have a clear and simple strategy to manage them.

[esgwdutesduCoti]

The important thing here is to understand that baskets are not a magical solution for volatility.They only soften the way, but if your base strategy is bad, there is no basket that saves you.Make sure your indicator works well independently before trying to combine it with a more advanced strategy such as baskets.

[resiSaxtoa]

I am beginning to realize that I need to improve my base strategy before adding something more complicated like baskets.I will definitely simplify things for now.Thank you all for your help and patience!

[crus]

That is a wise decision.Sometimes, the best step is to go back a bit to gain perspective.When you feel that you dominate the basics, you will be in a better position to experiment with more advanced ideas such as baskets.

[esSoux.esStesrojtt]

There is nothing wrong with step back.Many traders try to do too soon and end up frustrated.Remember that this is a marathon, not a short race.The key is to build a solid base to grow.

[resiSaxtoa]

That is exactly what I need to hear now.I felt frustrated for not being able to dominate the baskets immediately.I will dedicate myself to learn more and simplify my approach for the moment.Thanks for the spirits.

[ubuTruoga]

Your attitude is correct.Frustration is part of the learning process, but should not stop.Go ahead and do not hesitate to ask for help if you need it.We are all learning in this business, no matter what stage you are.

[Sichesynes]

The baskets can wait.First, build a solid strategy in one pair and make sure you can generate constant profits.When you have it under control, experiment with baskets in a demo account.So you do not risk real money while testing new ideas.

[Tkaxsxorwz]

The best advice I can give you is to keep an open but critical mind.Not all strategies that work for others will be suitable for you.Explore, but always return to the basics if you feel you are losing your way.That is what distinguishes traders who survive from those who do not.

[resiSaxtoa]

That is a good reminder.I was getting too much for new ideas without understanding them at all.I will take the time to consolidate what I know before trying something more advanced.Thank you!

[Tkna1964]

I'm glad you are willing to reflect on your approach.Most rookies do not have that humility and end up burning their accounts.If you need more tips or resources, here we are here to help you.Success on your way!

[Hescho2390]

Know?I was in your place, trying to make baskets without understanding how they really worked.I wasted a lot of time and money.Now I am concentrated in simpler and more effective strategies.Do not hurry, the baskets will be there when you are ready.

[oxoxes]

The baskets are advanced tools.It's like trying to pilot a plane without learning to drive a car.Learn the basics first.It dominates a couple, understands its behavior and then considers add more pairs or baskets.It will be much easier like this.

[tonar]

Exact.Patience is key in this business.Traders who try to advance too fast are usually those that burn early.Remember that you don't need to demonstrate anything to anyone.Learn at your own pace and enjoy the process.

[resiSaxtoa]

Thank you all for the reminders.I feel more focused and ready to return to the basics.I will continue to practice in demo and build my knowledge.This forum is a great help, thank you!...

[ttkestor]

That is the best thing you can do!Mastering the basics will give you a solid base to try more advanced strategies such as baskets later.Remember, even experienced traders return to the basics when things are not going well.It is an intelligent step, not a setback.

[EsruzesjuConwz]

Don't worry about the baskets for now.Learn to walk before running.Dominate a couple, understand your flow and then explore new options.If at any time you decide to resume the baskets, you will have more clarity on how to handle them and what to expect.Good road!

[Acutonax]

When you are ready for baskets, remember that you don't need to include too many pairs.A good basket can be as simple as two or three pairs with clear correlations.Until then, focus on understanding how currency pairs behave individually.It will be a great advantage in the future.

[jiesnesnTknua9]

If you return to the baskets later, be sure to measure the performance of each pair inside the basket separately.That will help you identify which pairs really contribute value.Meanwhile, focus on gaining consistency in one couple.It is the most direct way of building trust in your skills as a trader.

[resiSaxtoa]

Thanks for the tips.I will pause the baskets for now and focus on dominating a couple.This thread has given me a lot of clarity about what I must prioritize.I thank everyone who shared their opinions very much!