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PaniereFX

August 3, 2012 05:36 AM

Basket trading can be one of the most profitable ways of trading Forex. The idea is to trade a set of “correlated” currency pairs based on a sort of “index” of them.

The advantage is that you don’t put all the money on just one trade but on a set of trades correlated between them. By doing that you average losses and compensate them with the gains coming from other pairs.

Despite of the relatively simple concept behind it, basket trading is not as simple as it may seem.

The “PaniereFX” indicators set is here to help you in that.

It’ll make all the calculations for you and will show you a simple “index line” telling you exactly when to enter and if you have to go long or short your set of pairs.

The strategy can be applied to any timeframe, but as usual I suggest you to go with higher timframes like the daily (1D).

I usually trade a basket made of “USD” based pairs but I created another 3 indicators made to trade also “EUR”, “GBP” and “JPY” based based baskets. The 4 indicators form the set of “PaniereFX” indicators set.

Each of them will let you create and manage an independent basket of pairs.

Reading it is very simple. If you see the index line above the 0 line, then it means that the base currency is bullish, if below is bearish.

What to do next? If for example you have a bullish “USD” you go long all the USDxxx pairs and short all the xxxUSD pairs. AT THE SAME TIME.

The opposite applies in case the “USD” index is bearish. You sell all the USDxxx pairs and buy the xxxUSD ones.

That’s the same approach you’ll have for the other 3 baskets you can create.

Personally I suggest you to start with the USD one as in the past months it has been the most “reliable” one. But the JPY and GBP ones may be also a good choice. Trade wisely the “EUR” one as it is a little too volatile lately.

So the “PaniereFX” indicator set is (as almost all the indicators we develop) a trading system by itself.

What You Get

  • the 4 indicators
  • an online manual with detailed instructions regarding installation and and use, along with trading strategies to use the indicators for you trading with entry and exit rules
  • free access to the “PaniereFX Users’ Group” in order to receive automatic free updates, tips and tricks/articles/videos on how to use the PaniereFX indicators at best, and new trading strategies as they are found

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