Trading baskets of orders together with BasketFX

 The new BasketFX trading robot is designed to bring to life a trader's cherished dream: a strategy in which, through competent mathematical calculation, we make a profit regardless of the direction and strength of market movements.

Platform: Metatrader 4

Expert advisor version: 1.51

Currency pairs: EUR/USD, GBP/USD, EUR/JPY, EUR/GBP, USD/CAD, AUD/USD, NZD/USD, USD/JPY, AUD/NZD, USDCHF, EURCHF, EURCAD, GBPCHF, GBPJPY, CHFJPY, AUDJPY, CADJPY, NZDJPY

Timeframe: H4

Operating time: Around the clock

Recommended broker: Forex4you (Cent-NDD accounts)

First of all, let us begin with a description of the BasketFX forex expert advisor's strategy. It is nothing more than a grid of orders in the direction of a strong trend, with hedging of positions in the event of its reversal and closing the basket of orders upon reaching N points of profit in total across several currency pairs. Everything is not as scary as it seems if you sort out the elements of the system in order.

What is a grid expert advisor? It is a bot that opens orders after every N points of price movement. N is called the grid step. Suppose we opened a buy at 1.20000 and the grid step is 50 points. Depending on the strategy, we will open the next trade at 1.19500 or at 1.2050. In any case, at a distance of 50 points from the previous order. The next trade will be opened another 50 points later, and so on. I think the general principle is clear :)

Hedging in the grid means that we open both buy and sell orders, depending on where the price moves after the expert advisor is installed.

There are many variations in the use of a grid. For example, you can average a position by opening new orders in the same direction when the trade goes into the red. Or you can, on the contrary, increase positions when the price moves in the direction of our first trade. BasketFX uses the second option.

With grids, of course, not everything is so simple, otherwise it would be easy to "clip coupons" and not think about anything)) There are grid bots that work well in trending markets, and there are others more suitable for a flat, horizontally directed market.

BasketFX works best in strong trends, but it also performs quite well when there is no clear direction of price movement. Everything depends on the width of the sideways movement. And since hedging is used, on a sideways trend the advisor simply does not produce profit for some time, and the trades remain open. Then, when the trend gains strength again, the robot closes all orders and takes a profit. Orders can remain open for up to several months - THIS IS NORMAL. The good news is that it does not matter to us in which direction the trend will go. We bet on both possible directions and increase positions in accordance with the strongest movement.

Let us consider how BasketFX works. At the first start, the advisor will simply record in its memory the price level at which we launched it and, as soon as the price advances by the "step" set in the grid parameters, the bot will open an order in the direction of this first breakout. If the price continues moving in that direction, the advisor will open new orders at every "step." If the price reverses and moves against us, then after breaking the starting level (plus/minus the "step"), the advisor will open an order in the opposite direction. Thus we hedge, locking the loss and not allowing it to increase. After that, BasketFX will open new orders only in accordance with the prevailing trend.

Now let us move on to those additional elements that make this simple strategy thoughtful and well-developed. First, the "step" is based on market volatility: the greater the volatility, the larger the "step." And vice versa in the case of low volatility.

But the main "feature" of BasketFX is its multi-currency nature and the position exit tactic associated with it. The advisor trades several pairs at the same time (3 or 7). On each pair, the hedging strategy described above is applied, but all charts are interconnected, and when the sum of profit across ALL positions on all linked pairs reaches the Nth value, all orders on these pairs are closed. We make a profit (although some orders will of course be negative, the overall result will come out positive), and the advisor begins a new cycle of its strategy.

The key to success lies in selecting suitable sets of linked pairs for such a trading system.

The first group of linkages is "baskets" (basket). We trade 7 pairs simultaneously, and they are united by a currency that is present in all seven instruments. We have two baskets: one includes pairs with USD, the other with JPY.

The "USD basket" consists of seven trading pairs that include USD: AUDUSD, USDCAD, USDCHF, EURUSD, GBPUSD, USDJPY and NZDUSD.

The "JPY basket" is made up of seven instruments with the yen: AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, USDJPY and NZDJPY.

The second group of linkages is "rings" (ring). A "ring" consists of 3 possible intersections among 3 currencies. In total, we have 6 "rings" available (see the figure below). For example, one of them is EUR/USD/CHF. All possible combinations among these currencies are: EURUSD, EURCHF and USDCHF. A "ring" is something like a balanced set of indicators. If one or two pairs are moving strongly upward, then the third will be moving strongly downward. And vice versa. Or one goes up, another goes down, and the third stands still. In any case, a balance is always observed.

Due to the multi-currency strategy of the advisor described above, it is not possible to perform backtests.

The developers provide separate monitorings for each "ring" and "basket". Do not forget that you can use only those rings and baskets that you consider necessary.

Do not forget that you can use only those rings and baskets that you consider necessary.

You can track the monitoring of my real account with all eight expert advisors in the RoboTest section.

Since the expert advisor has no stop losses, it belongs to the category of "potentially dangerous" robots. And in the event of an unfavorable combination of circumstances and, especially, an incorrectly set lot, it can lead to the loss of a large part of the deposit. I strongly advise you to read 9 rules for working with dangerous expert advisors - this will help you avoid many mistakes that lead to losing money on a real account.

So, when working with BasketFX it is extremely important to follow the recommended money management. Namely: a 0.01 lot for every 1000 units of the account currency for each ring/basket. That is, if you want to use all 8 expert advisors (2 baskets and 6 rings) on one account with a 0.01 lot for each, then your deposit must be at least 8000 units ($80 on a Cent-NDD account at Forex4you) for BasketFX to function normally. For three expert advisors (for example, 2 baskets and 1 ring) with a 0.01 lot, you will need at least 3000 units of deposit currency in the account. Of course, no one is forcing you to risk several thousand dollars, so for this robot it is better to choose a cent account, namely Cent-NDD at Forex4You - the most optimal option.

To show the advantages of this account type more clearly, take a look at the table below, which presents the minimum deposit for trading with all 8 expert advisors for different account types:

If you are new to trading forex expert advisors, BE SURE to study the FAQ on installing and trading robots.

So, we have 8 expert advisors available: 2 baskets and 6 rings. So that you do not get confused, here are instructions on which expert advisor to place on which pair:

In total, when using all 8 expert advisors, you will end up with 32 charts.

For the expert advisor to work correctly, the trading terminal must be turned on from the market opening on Sunday evening until its closing on Friday evening. If you do not have the ability to keep your computer running 24/5, then I advise using a VPS server service.

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