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FX pair differences?

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  • First Post: Edited Jul 17, 2022 10:54am Apr 8, 2020 4:52pm | Edited Jul 17, 2022 10:54am
Why the same strategy can give very different results on different forex pairs?
I'm a beginner but as I understand it, strategies can give different results with different pairs because pairs can behave differently depending on different factors in their respective economies. Even if two pairs have similar average volatility, one could still chop around a certain amount while the other trends a certain amount and that could cause a strategy to give different results.

I've read that if you have a strategy that works much better on some pairs than others, it may be a good idea to tweak the settings or indicators to produce a more consistent result across-the-board. Of course, if your strategy is working well on most pairs but seems to fail with one or two in particular, there's nothing wrong with just ignoring those pairs entirely.
I suggest stop studying strategies if you are new, and focus on understanding what the forex market is and how it works first. If you understood this you would not be asking this question.

Read through babypips.com school of pipsology it will save you a lot of time.
Quoting Pubert
I'm a beginner but as I understand it, strategies can give different results with different pairs because pairs can behave differently depending on different factors in their respective economies. Even if two pairs have similar average volatility, one could still chop around a certain amount while the other trends a certain amount and that could cause a strategy to give different results. I've read that if you have a strategy that works much better on some pairs than others, it may be a good idea to tweak the settings or indicators to produce a...
It sounds strange the fact that it seems that there is like an inner character in each market that lasts over the years, I'm trying to understand why...
Quoting jo24
{quote} It sounds strange the fact that it seems that there is like an inner character in each market that lasts over the years, I'm trying to understand why...
It's true, some pairs are more prone to trending than others in certain months or years or chunks of years etc. I'm not sure it's crucial to understand why as long you know that it happens and is something you have to take into account when building your system. On the other hand, every little bit you learn should be able to help you in some way.
Quoting viptrading
I suggest stop studying strategies if you are new, and focus on understanding what the forex market is and how it works first. If you understood this you would not be asking this question. Read through babypips.com school of pipsology it will save you a lot of time.

I'll second this advice understand the market first. happy trading
when any traders think there is far difference among all pairs , its not true exactly in order to me, because when you have knowledge more about this stock market then of course there is a chance to bring minimum result by using any pair. but really major pairs is much secure than all others.
its really a nice topic i have seen in FOREX FACTORY , why the different result even though their is same result actually it depends on various reasons. mostly money management and risk management.
Quoting MarkFxAnde
when any traders think there is far difference among all pairs , its not true exactly in order to me, because when you have knowledge more about this stock market then of course there is a chance to bring minimum result by using any pair. but really major pairs is much secure than all others.
There are more information about major pair available on internet than other minor pair. Spreads of major pair are also lower than other pair.
major pair is always risk free and its more appropriate to trade major then others.
major pair is good than others , its so true there is no way to deny but its risk free its not completely true , because in spite of using major pair the result of trading can be useless if there is no trading knowledge and experience.
Quoting jo24
Why the same strategy can give very different results on different forex pairs that have same average volatility?
Every pair has its own unique movement pattern and characteristics. Sometimes it seems they are all moving to the same direction and every pair has its own chart and price pattern.
Quoting jo24
Why the same strategy can give very different results on different forex pairs that have same average volatility?
If we talk about technical aspects every pair has its own reasons to move. Sometimes same strategy works on different pairs but not all the time. But we try to use all the time. That's a mistake.
Quoting jo24
Why the same strategy can give very different results on different forex pairs that have same average volatility?

Because "average volatility" isn't a metric that primarily (or indeed significantly) determines the constancy across pairs of the strategy outcomes.

They may have the same "average volatility" but they'll have hugely different volumes; some are more dependent on fundamentals than on technicals.
All pairs are not same. Some remains stable for long time. But some are very volatile. So, be careful when you are going to trade with different pairs.
Which pairs remain stable for quite a while?
The currencies are different and have a different value. Even the pairs are different so the same strategy won’t necessarily work for all.
Quoting MarcoDresner
{quote} If we talk about technical aspects every pair has its own reasons to move. Sometimes same strategy works on different pairs but not all the time. But we try to use all the time. That's a mistake.

I completely agree with you. Fundamental aspect also different in every currency pair. Like Brexit only impacts on GBP pair.
Each trading pair has its own characteristics. As you can see, there is a volatile trading pair. but the other trading pairs are as stable as nothing happened. it is too normal
The speed of each pair is different. If you measure it with one strategy you will never catch it.
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