If you are long on GBPUSD, that means you will also long on some other GBP pairs against weak currencies, because GBP is strengthening. So as you indicated, you may compensate this losing position with other GBP longs. That's why trading all possible combinations will smooth out your equity curve.
DislikedHi TS...
I have been looking at this system and it appears to be producing pips for just about everyone who is trying it.
I have attached the 4 hr GBPUSD chart and was wondering how you filter or stay out of these situations. First off let me give you the RS readings for the 8 candles in the picture. Just going by the strict application of going long or short on the next candle using the RS readings would have resulted in 3 losses, 1 win with 2 no trades.
----USD-------GBP
1. 0.0070---- 0.0130
2. 0.0052---- 0.0141 Long on 3rd candle = Loss
3. 0.0083---- 0.0142 No Trade
4. 0.0093---- 0.0152 No Trade
5. 0.0057---- 0.0163 Long on 6th candle = Loss
6. 0.0016---- 0.0182 Long on 7th candle = Loss
7. 0.0012---- 0.0194 Long on 8th candle = Small Win
8. 0.0012---- 0.0197
This chart was from 12 Sept to about 16 Sept and we were transitioning from a down trend into a fairly decent pullback.
Has anyone come up with a way to filter out these situations, or do you just take the loss because the other pairs that you trade at the same time will make up for the occasional losing position?Ignored