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Three Pair Basket Trader

The Automated EA program trades a basket of three currency pairs at the same time on the same account in a Partially Hedged Formation. The strategy is based on three currency pairs being traded concurrently when their prices are out of sync with each other to earn a profit. The program does not rely on latency between multiple accounts. The program is a fully automatic program requiring no user interaction once set up on a chart of choice. The program closes the basket of trades once the Profit Target in Overall Pips is met or when specially designed closing conditions are met.

Note, to test out this program there is a free version that will only trade 0.01 lot sizes and only makes a portion of the trades, upgrade to this Paid Version for More Trades, Flexibility, and Adjustable Parameters.

The program is ideal for those looking for a low risk option in the market. By having three trades open at the same time in a partially hedged formation, a user is better protected by market fluctuations. Trade open time can be seconds to days with this program rather than just seconds like most Arbitrage programs. This is good because the program relies less on latency and execution rate than your typical Arbitrage or Scalper program. It is still recommended to pick a broker with low spreads and fast execution as they will play a role in both number of trades taken and profit earned.

Due to the nature of the strategy used to trade where three currency pairs are traded at once, please note that this program cannot be backtested using the strategy tester since you can only backtest one pair of data at a time. Backtesting was performed by the author with a self-written program using real tick data for all three default pairs: AUDUSD, EURUSD, and EURAUD. Based on these tests, using the default risk setting of 10, the expected max drawdown is 10% with an expected average monthly return of about 5%. The EA will limit the risk to prevent large drawdowns. Results may vary based on broker fees and other market conditions. The default EA settings are designed for an ECN type broker. Please ask if your broker is not an ECN broker for settings better suited for your broker.


Parameters

  • Magic - magic number to identify trades by EA
  • Lots - fixed lot size when not using auto lot, EA will limit this to prevent high risk.
  • useAutoLot - when True, calculates lot size based on account balance and risk setting
  • autoLotRisk - minimum percentage of account margin in a basket trade
  • ProfitMult - total overall pips * 10 for target TP of 3 pairs in trade.
  • LossProfitMult - total pips * 10 for target SL
  • SpreadAllowed - max spread for a pair to open
  • TakeProfit - hard TP point for each pair if loss of server connection
  • StopLoss - hard SL point for each pair
  • fileRecord - set to True to record all tick data


Additional Protections Built into the Program Include

  1. A hard TP and SL price are set with each trade opened in the event of very large market swings or loss of connection with the broker’s server.
  2. Automatic closing of all trades when less than three trades remain open or if a trade fails to open when the program tries to open the basket of trades. This is important to know as you can manually close one trade and the program will close the other trades immediately to preserve profits and protect the account.
  3. Stopping all Trading once a set number of consecutive losses occur.


Recommendations on Usage

  1. Run on the chart that has the most ticks, in the default case, the EURAUD chart will see more ticks than the other pairs.
  2. A timeframe does not matter, the EA uses ticks to trade.
  3. Start Risk small to watch program in action and determine if broker you are using will be profitable.
  4. Keep Risk low to protect your account from drawdown.
  5. Do not close trades over weekend as profit can be lost.
  6. Low spreads, low commission and high quality execution will help earn more profit.
  7. Minimum of $500 USD deposit on account to run, recommend $2000 Minimum.
  8. Run EA on its own account as it will use a large amount of margin per trade basket based on risk.


To My Customers

Please don’t hesitate to message me about any questions that you might have, I will be happy to help.


Author

Benjamin Patri – Programming expert in development, design, and optimization of automated trading programs with more than 7 years of Forex Experience and over 10 years of Trading Experience.

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Version 2.0 - 2017.06.29
Version 2.0 is newly improved to work with both ECN and Non-ECN Brokers. Version 1 was designed mainly for ECN brokers.

With Version 2, the Trade Open Signal has been modified to work better for all brokers, the winning trades are bigger, and the open signal stronger. This will equal a higher percentage of winning trades, but less trades overall. Expect an average of 1-2 trades per week.