The commodity of these pairs are both related to two big European economies. I will post account transactions later tonight. The only thing to do except the system itself is 'account protection feature'. Swiss Franc and Japanese Yen have some similarities because both of them belong to oil consumer countries but the volume of industrial trades in Japan, makes JPY different.
Forum on trading, automated trading systems and testing trading strategies. Multi currency EA ideas. Multi currency EA may be based on some other systems. The only thing to do except the system itself is 'account protection feature'. Because those kind of EAs may be risky, and this risk is for whole the account just my opinion sorry. But it also depends on how it will be coded for example.
Currency Pairs Correlation in Forex Market: As a forex trader, if you check several different currency pairs to find the trade setups, you should be aware of the currency pairs correlation, because of two main reasons:. Additionally, you avoid taking the positions with the currency pairs that move against each other, at the same time. Now I explain how currency pairs correlation helps. Lets start with the 4 major currency pairs: As you know, the first currency in currency pairs is known as the commodity and the second one is the money.
The commodity of these pairs are both related to two big European economies. Just recently, because of the economy crisis, they moved a little differently but their main bias is still the same. What does it mean? If you analyze the market and you come to this conclusion that you should go short with EURUSD and at the same time you decided to go long with GBPUSD, it means something is wrong with your analysis and one of your analysis is wrong.
So you should not take any position until you see the same signal in both of these pairs. Of course, when these pairs really show two different direction which rarely happens , it will be a signal to trade EUR-GBP.
I will tell you how. Swiss Franc and Japanese Yen have some similarities because both of them belong to oil consumer countries but the volume of industrial trades in Japan, makes JPY different. Otherwise, you have to revise and redo your analysis.
Just their movement pattern sometimes becomes more similar to each other and sometimes less. When I have a signal with a pair, but I need confirmation to take the position, I refer to the correlated currency pairs or cross currency pairs and look for the confirmation. I want to take a short position but I just need a confirmation.
If I wait for the confirmation, it can become too late and I may miss the chance. In such cases, you can check a correlated currency pair and look for a continuation or reversal signal.
It helps you to decide about the position you have. It's all about money management and collecting swap interest. Reset buy stop at this price level with a pip stop loss.
Let me know if you have any questions. I will post account transactions later tonight. I will give it a try also on a demo account and keep you posted. I don't understand 5 , will maybe need an example with actual numbers So now you have a long 1. You are looking to break even if the pair moves against your 1st position. While this is happening the other pair will normally be hitting their take profit level building you account balance.
Hope this didn't confuse you. Much clearer now, thanks. So are you saying that one of the pairs wouldn't realize a profit on the way up while the other is moving down all the while collecting interest on both pairs? If up to the challange, please show an example of your above statement compared to trading my method over this time to see how it would fair don't forget to add the interest.
I'm not saying that at all. Since you're not giving up two spreads, you save their. You said you had nothing you could say on that subject, so I tossed that in to the discussion. I guess I am not seeing it the way you explain. I consider both pairs as independant of each other that move in the opposite direction based on the daily time frame most of the time.
I haven't backtested my system. I have forward tested on a demo since May 08 and has a net profit at this current time. I count on the market gyrations to close the multiple open positions. I need to take a look at the max DD and build a MM spreadsheet around this.
Will work on it over the weekend and post it here.