Baxter started with centre-backs Mulomowandau Mathoho, Tefu Mashamaite and Morgan Gould, as well as full-backs Tsepo Masilela and Siboniso Gaxa against the Urban Warriors on Tuesday night.
However, the Briton says Masilela and Gaxa were deployed primarily in an attacking capacity at Cape Town Stadium.
"It couldn’t be further from the truth that we played five defenders. We played with three defenders and the two full-backs were pushed forward to assist the attacking midfielder," Baxter told his club's official website.
"Tsepo played more crosses, and 'Pa' (Gaxa) made more forays in the opposition’s box than 'Shabba' (Siphiwe Tshabalala) and George (Lebese), who had a license to be offensive on the day.
"We were more offensive than defensive. The same system that has worked before; we used the same system against Wits last season and succeeded."
Amakhosi, sitting five points behind League leaders Mamelodi Sundowns, next host Bidvest Wits on Saturday, with Baxter hoping for a response at Soccer City.
"We have to demonstrate a solid response against Wits," Baxter said.
"That’s what coaches all over the world tell their players after disappointing results. Last year we still won the PSL after losing in Cape Town, so if you look at the bigger picture, as disappointing as it was losing to Ajax, it is not the end of the world.
He added: "This season is so disjointed, maybe until January it will be difficult to know who the genuine challengers are. We just have to make sure that while the league is taking shape, we must stay with the chasing pack.
"We will have our challenges in the process. Last season the respect for Chiefs had dissipated and everyone thought they could beat Chiefs. Now that we got the respect back, the opponents have become more tactically careful.
"To repeat success is difficult. It is natural to breathe after a successful period. The players don’t consciously decide to take a day off.
"I told the players after the defeat that we are not stretching ourselves and that’s what successful teams have to come to terms with.