2HEDGE FX-BASKET STRATEGY

The strategy is half statistical and half position sizing with using minimum leverage. Most trading systems try to predict market direction while our strategy only react to price changes on major currency rates.

A better risk-reward comes from diversification of the basket of the major currencies involved compared by just trading one major currency. A portfolio of several currencies, one can be negative while the other show profits to compansate for losses.

The system has no real technical indicators and nothing to optimize. Very important for the system is leverage, which is very low and variable. The systems has open positions, both Long/Short in all major currencies, but is almost hedged in the account currency. The open postions are adjusted daily in small steps. You can trade your account using a broker which allow trading in pips (fractional size). Big accounts can use mini contracts to rebalance the account with small corrections.

The system looks to all the major cross rates in order to trade the major currency rate. There are no stops involved.