Dear community, I have heard that this kind of systems can make you win 1,000 pips per week.
Please anyone in this community can answer me what is basket trading? It's real the fact that I can win 1000 pips per week or more? Does anyone can post a reliable system using basket trading?
Thank you very much.
Basket trading is when you trade a number of pairs that correlate together. I traded a basket of GBPJPY, EURJPY, GBPUSD, EURUSD, AUDUSD some time ago. These pairs don't move in lock step with each other but they do move overall in the same direction.
When you hear 1000 pips a week it is kinda inflated. I say that because......Let me give you a example;
I traded 1 lot each pair, and would have a take profit of 150pips total, so when i got 150pips total i would exit. But in reality because i am trading 5 lots , if i was to trade 5 lots with one pair i would really only need 30pips from that one pair to make the same amount of money! So the pip count can get kinda inflated.
The good thing about trading with a basket you get an overall picture of the market. The bad thing about it is if you get the direction wrong you are likely to have five pairs moving against you.
Hope that has helped you a bit.