Scaling Baskets

[ezrydn]

HUH??? LOL

You'll have to be a basket trader to enjoy this one.

You have your basket active and running. All pairs are solid GREEN. Wanna add to your total take?

I use a product called Auto-Scaler. Google it. If your basket is running on a 1H offline chart, simply open a new 15M chart for your top producing pair, add your fav template and the Auto-Scaler EA. I set the Scaler to 4 add'l trades w/5 pips sep at 0.5 lots. Original Scale order is 1 lot. My basket trades usually run at 0.4 lots.

It will normally take 3 candles for price to clear the order field. Wait til it's well clear of the order field and back on solid run.

Now, Rinse/Repeat for your 2nd and 3rd highest producers. That's it!

I call it a money Pump! Demo it and see for yourself. Seven-pair JPY baskets, done this way, produce scarey amounts. LOL

 

[ezrydn]

Even with a ranging market last week, the combo of using baskets and scaling pull profit out of the system. I used both combined and singularly and did fairly well. I like these two approaches. Plus, they enhance the use of the other.

Actually, it's an all day effort! First, you have to wait till all basket pairs are SOLID green. That, in itself, may take a while. Next, open a pair chart for your top producing pair. Here, I scale 4 add'l trades @ 0.5 lots and 5 pips separation. On a 15M chart, it might take 3-4 candles to fully pass through the order field. Once price is clear of the field without returning, now repeat with you second highest producing pair. In an 8 hr period, you might get the third highest producer started.

This method has been a great profit producer, WHEN IT RUNS. And when it clicks, it's a money spout. And this was revealed by playing my "what if" game.

 

[ezrydn]

As I said above, there's waiting involved. What to do while I wait? I Scale GOLD! Making my "Money Pump" a three-part operation. I have a basket in profit, my scaling of basket producers are in profit and I'm now scaling GOLD, which is highly profitable. I combine the three concepts throughout my trading day. I use a 5M chart to scale GOLD.

 

[ezrydn]

I have recently tested the "10 add'l trades" idea with FAS. It works well if you use 4 pip sep. Price is less likely to get stuck bouncing around in the order field. Lot size is your call. I use 1.0 lots.

 

[ezrydn]

For those of you who reside in the US, I'm sorry. I didn't know that you were blocked from trading metals. So, just for you, three buddies of mine and I are putting together a workaround for you so you can enjoy the same types of profits we Gold scalers get. When it's proven and the lot sizes are worked out, I'll post the procedure in it's own thread. Probably this coming weekend.

 

[ezrydn]

A TIP about scaling. No matter what you set your scale field to, ALWAYS make your initial order at 0.01 lots. WHY? If price balks at your scale and retraces, you close out, losing pennies. If price moves into the field, you're more apt to see profit.

This is one of my "checkpoints." Oh, the Gold workaround is to scale GBPJPY and CHFJPY at the same time, two charts open. on 15 M TF.