DislikedThe point I think that is being missed is that going short on EURUSD&USDCHF because the EURCHF went up and going long on EURCHF&USDCHF is counting on mean revision. When it runs away you are stuck. I think it would be better to use the general trend of EURCHF to pick your side while you aren't geared very highly so that you can handle moves against your hedged position. The two pairs move almost always against each other in the long term but that correlation, if it breaks down, will either be very prosperous for you or go heavy against you. Wouldn't it make sense to use the current correlation status found in http://www.mataf.net/en/forex/tradin...lation/detail/ see when it is not running near -1 and look for either a trend to continue, or try to pick a reversal........Ignored
I enjoy reading this thread but have "been there done that" before and at the end of the day, I dont think these methods are any more profitable or any less risky then the countless others posted on this forum (none of which I would trade with live money).