[Skalpist]

First the results from Thursdays session.

Profitable trades amounted to 100 pips ... Unfortunately there was also 190 pips in losing positions amounting to a net 90 pip loss. After three weeks of trading this is only the second losing day.

That said let me answer the question about the difference between trading 1 lot across five pairs versus five lots in one pair.

Seriously I can't believe that this has been brought up by traders claiming to be experienced but here it goes.

From a pure mathematical perspective there is no difference that is true.

From a trading profits perspective it is true that if you place a single five lot trade in the fastest moving pair that it would make more profits faster.

HOWEVER there is no possible way to know before hand which pair will move the fastest so this argument is beyond ridiculous.

The basket generally provides a level of confirmation of a trend that is sply not possible trading only a pair or two. Furthermore by trading multiple pairs you are protected from one or two going "rogue" and suddenly moving counter to the trend as we saw yesterday with the GNP pairs and what looked an aweful lot like stop hunting.

In other words the basket is meant to provide a level of trading protection without (as a general rule) eating your your profits on every trade with a hedging strategy.

Very nearly all the time the basket moves together and profits are made somewhat quickly (as in 150 pips in a couple of hours).

During those somewhat uncommon times when one pair does move opposite the trend you get protected.

Let me give an example. Let's say that we looked over the last month and decided that since gbpusd has been the better performer we simply placed a five lot trade on that one pair.

When that cuurency suddenly went wildly against the trend thanks to what looked like institutional stop hunting we would have lost our rear ends to the tune of about 250 pips.

Instead we lost only 90 pips ... And folks trading the basic strategy didn't lose ANY because we dropped that pair from the basket. And in fact finished with a profit.

In short the strategy worked and worked Betty well.