MultiSpread trading system
MultiSpread is a trading system that studies the correlation between 5 financial instruments and determines useful information on how to open a basket and when to close it.
The basic setting that we will use for the guide is to predict the study of correlations between 5 forex pairs:
Trading indicator + Trade Manager EA download page
The graphic aspect of the Multispread indicator
The indicator generates a curve that has the characteristic of being stationary in the long term (it has a maximum limit and a minimum limit).
This reflects an important principle typical of online trading, that is, we can have important information about where we are and where we can go.
When to open a basket of trades
If the curve is in the high end and in particular it tends to turn downwards (blue passes under the red) we can evaluate to open a basket that will take value (create profit) on the bearish phase of the curve.
We can of course also think of the opposite signal, i.e. when the curve is in the low range and turns upwards (blue passes over red). In that case the basket will create value from the upside of the curve.
The 5 underlying must be combined in buy and in sell and it will be the same indicator to provide information on the directions to open.
It is preferable to have at least 4 out of 5 indications to open a basket of positions.
When to close basket trading
There are 3 guidelines to follow for closing the basket:
- closes when a certain monetary profit value of profit set by the trader is reached (on average from 50 to 100 pips total based on the lots used)
- closes when the curve has reached the line opposite to the start (up to down or vice versa)
- if the result is not achieved within 7 days, it is advisable to close the basket by accepting the loss or any lower profit.
MultiSpread Trade Manager
The Trade Manager is an expert advisor who helps the trader manage positions. Among its features we mention:
- selection, opening and closing of 5 instruments with 1 click
- global monetary profit target setting
- monetary target setting on individual baskets (10 are planned)
- breakeven setting with respect to the monetary target
- change the type of Buy or Sell order with 1 click
- manually closing baskets
- manually closing half size of baskets
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Basket to trade
The default basket proposed is specially designed and tested by our traders. It allows for a good balance of market exposure versus USD and has given excellent operational insights.
If you decide to calculate other spreads you can evaluate positively or negatively correlated pairs as a whole.
For example, a slight variant that we are studying is the use of NZDUSD instead of GBPUSD.
The first piece of advice we want to give to our customers is to study the trend of the curve on all timeframes before taking a position.
In order of importance we have:
For those who want to trade intraday it is very useful to follow H1 when it is aligned with the Daily… and then enter when M15 also aligns with H1.
Intraday trading example
1. Daily with bullish and positive curve (value> 0, blue over red)
2. H1 with curve on the minima (value <0 and at the minimum)
3. M15 with curve on the minimums (value <0 and at the minimum)
4. in M15 it is even better to wait for the blue line to pass over the red
For those who want to trade slower timeframes then it is advisable to evaluate Daily and H4.
Italian PDF paper
As you know we have an italian team for this project and we have prepared a PDF paper available on the telegram channel here: https://t.me/PipTrend/1051