Basket Trading Strategy uses a number of difficult to understand custom indicators, which every trader using this TS needs to understand in order to clearly understand what is happening. ForTrader.org magazine offers you a ready-made solution of the system, designed for timeframes H1 and M15, but insistently recommends to take a closer look at the code of the indicators or study the information on them before trying to trade on a real trading account.
For our work we will need
- Currency pairs: one of the main
- Timeframe: H1 or M15
- Indicators: 14 Pair HAS, Basketv6, Heiken_Ashi_Smoothed, I_XO_A_H, T101 Basket Trader v2.3
- Template: simple-basket-trading.tpl
Load the indicators and the template in the appropriate folders of your terminal, open the desired pair and connect the template. The template is set to work on the timeframe H1, respectively, the indicators I_XO_A_H have parameters (from top to bottom) 925 (readings for H1), 1230 (readings for H4), 4920 (readings for Daily). To work on the M15 time frame it is required to set the parameters 35, 85, 123, respectively.
Rules of the trading strategy
Buying deal opens when all three indicators I_XO_A_H blue, Heiken_Ashi_Smoothed also blue and 14 Pair HAS on the desired pair shows the up arrow.
A bargain for sale opens under opposite conditions: all three indicators I_XO_A_H red, Heiken_Ashi_Smoothed also red and 14 Pair HAS on the desired pair shows the down arrow.
Closing the transaction occurs when a reverse signal appears. You may be able to think of additional rules for exiting a position or use a tralling stop.
It is important to note that the strategy is focused on the long term, so even on M15 trades can be open for quite a long time. If you want to reduce the duration of the transaction, vary the Box Size parameter of the I_XO_A_H indicators.