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Basket trading

forexpipcatcha
Apr 22 2014 at 09:28
posts 325
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.

Nicola Jonathan (SlymTrader)
Apr 22 2014 at 12:48
posts 6
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 !


When money makes money...
forexpipcatcha
Apr 22 2014 at 13:18
posts 325
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?

Nicola Jonathan (SlymTrader)
Apr 22 2014 at 13:47
posts 6
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



When money makes money...
Nicola Jonathan (SlymTrader)
Apr 22 2014 at 13:47
posts 6
err sorry : that is Med Risk = 10% Low Risk = 30 %

When money makes money...
Hugo ONeill (honeill)
Apr 22 2014 at 18:24
posts 1141
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."
forexpipcatcha
Apr 22 2014 at 18:53
posts 325
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.

alexforex007
Apr 23 2014 at 06:23
posts 774
What is the idea? To create a portfolio that uses different trading systems? Should be interesting to see the results of such management strategy.

forexpipcatcha
Apr 23 2014 at 09:38
posts 325
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.

Hugo ONeill (honeill)
Apr 23 2014 at 16:08
posts 1141
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."
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