Basket trading
Členom od Aug 30, 2013
325 príspevkov
Apr 22, 2014 at 09:28
(upravené Apr 22, 2014 at 09:33)
I started this post to try and develop collaboratively a basket of trading systems to minimise risk and maximise profits without blowing trading accounts.
My suggestion is to build up say 5 systems to make 100% of a portfolio. Each of the system is to have its weighting as configured by it's statistical results shown such as DD, performance per month, risk to reward, risk managed, length of system being in operation etc. The basket should contain a small percentage to a high risk strategy that works well, then a big percentage aimed at med risk strategies and low risk strategies, but feel free to disagree giving reasons and suggestions.
So if you have any system in mind that would be useful in this topic do post the link for them and suggest what percentage they should be allocated of the total 100% and your findings are based on what? The good thing about basket trading is that if an account is detected to be declining in performance one should replace it by a better strategy that is performing much better. This will weed out the weak systems and hopefully maintain a high standard of a basket system trading produced.
My suggestion is to build up say 5 systems to make 100% of a portfolio. Each of the system is to have its weighting as configured by it's statistical results shown such as DD, performance per month, risk to reward, risk managed, length of system being in operation etc. The basket should contain a small percentage to a high risk strategy that works well, then a big percentage aimed at med risk strategies and low risk strategies, but feel free to disagree giving reasons and suggestions.
So if you have any system in mind that would be useful in this topic do post the link for them and suggest what percentage they should be allocated of the total 100% and your findings are based on what? The good thing about basket trading is that if an account is detected to be declining in performance one should replace it by a better strategy that is performing much better. This will weed out the weak systems and hopefully maintain a high standard of a basket system trading produced.
Členom od Jan 14, 2014
6 príspevkov
Apr 22, 2014 at 12:48
Hi ,
This is exactly how I trade on my accounts :)
couple scalpers EA , one grid EA and a break out EA...
Works great , money management is the key here !
Have a look :
Demo : https://www.myfxbook.com/members/SlymTrader/ninja-10000--ecn/846993
Real : https://www.myfxbook.com/members/SlymTrader/ninja-client07/847228
Cheers !
This is exactly how I trade on my accounts :)
couple scalpers EA , one grid EA and a break out EA...
Works great , money management is the key here !
Have a look :
Demo : https://www.myfxbook.com/members/SlymTrader/ninja-10000--ecn/846993
Real : https://www.myfxbook.com/members/SlymTrader/ninja-client07/847228
Cheers !
When money makes money...
Členom od Aug 30, 2013
325 príspevkov
Apr 22, 2014 at 13:18
Very much in line with what I've said right?
What sort of percentage do you break them up into?
I'm guessing something like this:
High risk 15%
Med risk 35%
Low risk 50%?
Is that close you reckon?
What sort of percentage do you break them up into?
I'm guessing something like this:
High risk 15%
Med risk 35%
Low risk 50%?
Is that close you reckon?
Členom od Jan 14, 2014
6 príspevkov
Apr 22, 2014 at 13:47
Well , I don't use 'High risk' ( for me that's martingale , d'Alembert progression and stuff like that )
I would rather break it down to :
Low Risk = 10%
Med Risk = 30% max
High Risk = ---
There is a safe stop in place for every strategy on a max DD
I would rather break it down to :
Low Risk = 10%
Med Risk = 30% max
High Risk = ---
There is a safe stop in place for every strategy on a max DD
When money makes money...
Členom od Jan 14, 2014
6 príspevkov
Apr 22, 2014 at 13:47
err sorry : that is Med Risk = 10% Low Risk = 30 %
When money makes money...
Členom od Apr 08, 2014
1141 príspevkov
Apr 22, 2014 at 18:24
Why is the low risk (30%) higher than medium risk (10%)? Should it not be the other way around!!!
"I trade to make money not to be right."
Členom od Aug 30, 2013
325 príspevkov
Apr 22, 2014 at 18:53
(upravené Apr 22, 2014 at 18:55)
No I meant of the 100%of funds what percentage of them would you allocate to high risk, media risk and low risk strategies? But you must use all 100%of a fund. Sorry I wasn't clear. Most people invest 100% of their fund on one strategy only and when it fails they lose all their funds I.e 100 % of funds,so the point is to protect the account.
Členom od Oct 11, 2013
775 príspevkov
Apr 23, 2014 at 06:23
What is the idea? To create a portfolio that uses different trading systems? Should be interesting to see the results of such management strategy.
Členom od Aug 30, 2013
325 príspevkov
Apr 23, 2014 at 09:38
Yes Alex that's the idea which is far superior then using only one strategy (50/50 success rate at best) in which if it fails then you lose your entire fund. Perhaps such a system will have sustainability and if such a basket is made out of several systems say 5 if one is not working up to the expectation it can be replaced to improve overall performance.
Členom od Apr 08, 2014
1141 príspevkov
Apr 23, 2014 at 16:08
I see. On monthly base i must not losse more than 2%. If i reach the 2% level in the midlle of the month i stop trading and start studying what went wrong. I'm up 3% to 4% a month.
"I trade to make money not to be right."
Členom od Jan 14, 2014
6 príspevkov
Apr 24, 2014 at 06:37
@ alexforex007 : The point is to have a diversification of risk. i.e. If one strategy will loose one day the other 2 will 'save the day' by at least evening up the lose or even break to profit .
( funny it happened today ... exactly as I say . I ended up making profit with one EA having to close in lose )
@ Hugo : Its not the risk...
@ Forexpipcatcha :its not the founds... : I use the money management that will check before every trade issued by the EA the account balance and equity:
For every strategy I have a risk percentage ( 10 % for the risky ones and 30 % for the safe ones ) to invest and not fall into 'margin over requirements' AND to have a comfortable risk management.
For me the monthly Goal is 15% ROI of current account and max DD 20% with this bucket strategy.
Sorry if I was not clear before
Safe trading !
( funny it happened today ... exactly as I say . I ended up making profit with one EA having to close in lose )
@ Hugo : Its not the risk...
@ Forexpipcatcha :its not the founds... : I use the money management that will check before every trade issued by the EA the account balance and equity:
For every strategy I have a risk percentage ( 10 % for the risky ones and 30 % for the safe ones ) to invest and not fall into 'margin over requirements' AND to have a comfortable risk management.
For me the monthly Goal is 15% ROI of current account and max DD 20% with this bucket strategy.
Sorry if I was not clear before
Safe trading !
When money makes money...
Členom od Apr 08, 2014
1141 príspevkov
Apr 24, 2014 at 10:58
Ok, i've got it, is the amount of capital you would use.
"I trade to make money not to be right."
Členom od Aug 30, 2013
325 príspevkov
Apr 24, 2014 at 11:02
The capital is slit into several smaller parts and each of the smaller capital invested into different strategies.
I would recommend split into 3 or 5 parts that way you're not risking all capital on one strategy and should protect your capital much better. The question now is which strategies to use which probably would depend on DD.
I would recommend split into 3 or 5 parts that way you're not risking all capital on one strategy and should protect your capital much better. The question now is which strategies to use which probably would depend on DD.
Členom od Apr 08, 2014
1141 príspevkov
Apr 25, 2014 at 10:25
forexpipcatcha posted:
The capital is slit into several smaller parts and each of the smaller capital invested into different strategies.
I would recommend split into 3 or 5 parts that way you're not risking all capital on one strategy and should protect your capital much better. The question now is which strategies to use which probably would depend on DD.
Diversification can be achieved not only by using different strategies.
You can use the same strategy on different financial instruments with low correlation.
"I trade to make money not to be right."
Členom od Aug 30, 2013
325 príspevkov
Apr 25, 2014 at 10:41
(upravené Apr 25, 2014 at 10:42)
honeill posted:forexpipcatcha posted:
The capital is slit into several smaller parts and each of the smaller capital invested into different strategies.
I would recommend split into 3 or 5 parts that way you're not risking all capital on one strategy and should protect your capital much better. The question now is which strategies to use which probably would depend on DD.
Diversification can be achieved not only by using different strategies.
You can use the same strategy on different financial instruments with low correlation.
I agree but if the strategy doesn't work you lose 100% of the capital in all the instruments and the idea is to protect capital as much as possible so that you produce some stream of income, hence why the suggestion is to use several strategies. Besides if you use the same strategy how do you define what is low, medium and high risk?
By the way does anyone know how to use myfxbook to merge 3 accounts into one to try and set up such a basket trading system?
forex_trader_43716
Členom od Aug 06, 2011
345 príspevkov
May 07, 2014 at 09:15
Are you an affiliate for a group of money managers? Just that none of your published results give verification of your trading privileges. As quoted ny Myfxbook:
'Verifying my trading privileges (MetaTrader 4)
Since users can publish an account which is not theirs using the investor password, another verification system is used. This verification process ensures that you are actively trading the account and not using someone's investor password. However, this check is relying on the fact that your account's password wasn't stolen! In such case, please contact us.'
😎
'Verifying my trading privileges (MetaTrader 4)
Since users can publish an account which is not theirs using the investor password, another verification system is used. This verification process ensures that you are actively trading the account and not using someone's investor password. However, this check is relying on the fact that your account's password wasn't stolen! In such case, please contact us.'
😎
Členom od Aug 30, 2013
325 príspevkov
May 07, 2014 at 09:56
Who are you referring to Gary?
I'm affiliated to anyone nor anything and I don't come here to publish anything but use myfxbook so I can track my trades when I cant access my server. I don't come here to put up with idiots lol
I'm affiliated to anyone nor anything and I don't come here to publish anything but use myfxbook so I can track my trades when I cant access my server. I don't come here to put up with idiots lol
forex_trader_43716
Členom od Aug 06, 2011
345 príspevkov
May 07, 2014 at 09:59
As expected! 😎
Členom od Aug 30, 2013
325 príspevkov
May 07, 2014 at 13:37
(upravené May 07, 2014 at 13:48)
What do you mean ? I am affiliated to no one not that I care lol but add something worthwhile here like you know how to combine accounts to make it one total etc
By the way I wouldn't know how to steal an account or copy or tamper with unlike you I don't need to be a thief but I can explain each account if you like.
By the way I wouldn't know how to steal an account or copy or tamper with unlike you I don't need to be a thief but I can explain each account if you like.
Členom od May 02, 2013
90 príspevkov
May 09, 2014 at 00:12
This is an interesting concept, but won't the end result still be a single trading strategy? That is, it's a 'basket trading strategy.'
The strategy is a collection of different strategies which in the end is a single strategy. If all the collection of strategies are trading one Bankroll then in the end it's just a single strategy, purely an opinion and maybe I'm missing something. (No wise cracks please 😁 )
If anyone has adopted this strategy recently, I would be interested in knowing how it's going.
The strategy is a collection of different strategies which in the end is a single strategy. If all the collection of strategies are trading one Bankroll then in the end it's just a single strategy, purely an opinion and maybe I'm missing something. (No wise cracks please 😁 )
If anyone has adopted this strategy recently, I would be interested in knowing how it's going.
Hate your losers more than you like your winners
