Building Weighted Basket Charts from Multiple Instruments

Summary

This document explains a MetaTrader 4 script that builds an offline chart for a user-defined basket of instruments and updates it as new ticks arrive. It calculates basket prices using a geometric mean, allows directional weights—including fractional weights—to set each instrument’s contribution and orientation, and lets the user choose the chart timeframe and apply a template. Suggested baskets include groups of commodity currencies, precious metals, yen pairs, and technology stocks.

The chart is intended for analysis or use by an expert advisor, but the note gives no trading rules, backtest, or performance evidence. It recommends running the script from a one-minute chart and warns that the resulting history depends heavily on the quality of historical data for the basket’s instruments. The examples establish that baskets can span different asset types, while the usefulness of any particular composition and weighting remains a matter for the trader to define.

Key ideas

• The script constructs an offline chart from a user-selected instrument basket.
• Basket prices are calculated using a geometric mean.
• Directional weights can orient instruments with or against the basket and can be fractional.
• The basket can include different instrument types, and its chart can be analyzed or traded by an expert advisor.
• Chart history quality depends on the historical data available for each instrument.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.