In Financial markets, everything is about Psychology and Money/risk management.
When we are trading, no matter the symbol or strategy, some of our trades ending with profit and some other with loss. So, what if we trade the baskets of strategies or symbols?
In the Basket trading strategy, our basket can be a mixture of symbols or strategies. And both are using to decrease the risk of loss.
In the Strategy basket, we find, for example, four different strategies, which are not correlated and following different bases.
For example:
EMA crossing Strategy / Candlestick Strategy /
Trend Trading Strategy / Ichimoku Clouds
You can find all of them in our Meta trade platform; it is enough to click on the bellow link and start registering with us. And then to choose four symbols that can be related together or not.
EURUSD / AUDUSD / CADJPY / GBPUSD
In the last stage, we divide the total volume that we want to trade into four positions.
So,
In the Symbol basket, we choose a single strategy but four different symbols that are not correlated. For example
EMA crossing strategy and
EURUSD . GBPCAD . AUDNZD . USDRUB
These symbols following different time zone and economies and are not related, so we already reduced our risk.
And now what we do is to divide the total volume that we want to trade into four positions.
So, a basket trading strategy is a Money and Risk Management strategy, by distributing the risk into different markets by different strategies.
Hedge funds and investment institutes mostly use basket Trading strategies; however, as an independent trader, you can use them also.
