Hi everybody!
I want to offer for discussion a method allowing to increase results of any TS. I am working at it and would be glad to any constructive dialogs.
We will use eight currencies: EUR,USD,GBP,CHF,JPY,CAD,AUD,NZD so we will be able to make twenty eight pairs by using these currencies (look on the attached picture) and one hundred five combinations called as hybrids with little correlation of pairs inside of hybrids.
Rules of the strategy are:
1. to trade no more than four pairs,
2. all traded pairs must be as the whole or the part of one hundred five of hybrids,
3*. the size of a position of each pair must be normalized by volatility of EURUSD; for example 100K EURUSD corresponds to 300K EURCHF or 90K GBPCHF.
My favorite pairs are EURUSD,GBPUSD,USDCHF,USDJPY,EURCHF,EURGBP,GBPCHF. Usually I begin to construct the hybrid with these pairs.
Currently I am waiting for reversal of some of these pairs so I hope we will be able to see how it works very soon.
* It is an necessary element of Money Management.
P.S. My TS uses a day time-frame, has the stoploss about 150-250 pips (for EURUSD) and will not be as a subject for discussion (sorry).
We will use only its signals, but all traded positions will be accompanied in detail from initiation to liquidation with description of dynamics.
Regards
I want to offer for discussion a method allowing to increase results of any TS. I am working at it and would be glad to any constructive dialogs.
We will use eight currencies: EUR,USD,GBP,CHF,JPY,CAD,AUD,NZD so we will be able to make twenty eight pairs by using these currencies (look on the attached picture) and one hundred five combinations called as hybrids with little correlation of pairs inside of hybrids.
Rules of the strategy are:
1. to trade no more than four pairs,
2. all traded pairs must be as the whole or the part of one hundred five of hybrids,
3*. the size of a position of each pair must be normalized by volatility of EURUSD; for example 100K EURUSD corresponds to 300K EURCHF or 90K GBPCHF.
My favorite pairs are EURUSD,GBPUSD,USDCHF,USDJPY,EURCHF,EURGBP,GBPCHF. Usually I begin to construct the hybrid with these pairs.
Currently I am waiting for reversal of some of these pairs so I hope we will be able to see how it works very soon.
* It is an necessary element of Money Management.
P.S. My TS uses a day time-frame, has the stoploss about 150-250 pips (for EURUSD) and will not be as a subject for discussion (sorry).
We will use only its signals, but all traded positions will be accompanied in detail from initiation to liquidation with description of dynamics.
Regards