Here is my new rating system for volatility of pairs. I rated them from 1-6, 1 is lowest volatility and 6 is the highest. The biggest shock of this information is that the EUR pairs occupy 6 of the top 9 most volatile pairs. As this moment I would not try trading most EUR pairs because of this information. The information has been divided into two studies. Volatility based on OCT. 2008 moves and volatility based since April 2009 when most of the effects of the Oct. 2008 had finally finished. For trading 10.0 Range trading I would take the lowest 10-15 pairs to trade. Use a ratio of trading 1 nickel per 1000 dollars in the account. Now what I mean by that would be .02 cents first level and .03 second level for a total of .05 cents. Included is my test version which gained 13.5% of my account in two weeks. However, that was trading too large lots. I traded 100 dollars and trade .01 or 1 penny .02 second level great returns but no room to countertrade if there was trouble. I trade all the pairs I marked as #1-4 but no GPB/AUD or EUR/AUD. I will not trade #5 or #6 because I rate them as too volatile. Any way here is the my new currency range information and rating system.
Attached File(s)
RANGES OF PAIRS.xls
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