Choosing a currency pair

I have a couple questions about choosing a currency pair:

When choosing a currency pair to trade which different factors do I look at to make my decision? E.g. what time of day I trade, type of system I use etc.

How can I tell which works best for my system without trying ever currency pair?

Thanks

Arcane.

Similar issue is being discussed on this thread:

http://www.forexfactory.com/forexfor...ead.php?t=5534

Dane

When compared to other currency pairs, the EURUSD currency pair is relatively predictable. Traders enjoy the fact that it usually starts its daily runs during London Market Open and is liquid throughout the New York session. Prices are usually predictable to a large extent.

As a newbie in forex I would like know which currency pair is better to practice using a demo account and also live trading that has higher chances of profits if traded properly?

Only way you can test which works best with your system is by backtesting with a decent backtester.

EURUSD will give the tightest spreads, with minimal spread widening over 'the witching hour' (5pm-6pm EST) when having to hold overnight (I would seriously just prefer that FX brokers stopped trading during this time).....but I find it can be a real pain in the ass, always falling short of the entry levels I look at....but with that said, EURUSD tends to follow textbook rules of market structure...I watch it putting in these little text book M and W reversals, and I don't touch it cos I think it must be a trap, but they very often aren't. Instead, they are very often the most simple trades in the book.

I like GBPJPY, and CADJPY.....they fkn move. They suit a trader willing to hit trades aggressively at key levels. They seem to suit what I do.

Only way you are going to find out what pairs suit you best is trial and error.....and/or lots of back testing.

Best back testing software I have come across at a cheap price (or for free even), is on Motivewave. It plays price back across multiple timeframes simultaneously....setting up a duff FXCM and/or OANDA account will give your FX and CFD pair feeds on Motivewave.

Your tolerance of risk should be the deciding factor along with your understanding of the currency pair. I started with majors as a beginner and have recently moved to a minor pair- EUR/GBP. I haven’t taken any big risks so far on this pair. Just determining its movements at the moment.

EURUSD always wins

I think it's good to pick a major pair when you're just starting out. I definitely look at the times I trade, the knowledge I have of the currencies and the historical volatility.

Why did you revive a 15-years old thread?? lol?

its one of the major pair we have in online , it can be a winning trading pair always but of course you have to make sure perfect knowledge and experience , otherwise the result of trading can be useless.

Forex traders mainly choose the currency pair according to the following criteria:
1. Their time zone - they have to be able to trade the pair at the time of market opening
2. The relationship between the two currencies which forms the basis of their movements
3. Their trading style is determined by their strategies, money management rules, and risk appetite
4. The market conditions - technical analysis is the preferred method of trading by most traders.

right now doing scalping by EUR/USD, GBP/USD. anyone there is who also doing scalping ?

In my case, I oversee the pairs in the previous hour/day and look at how it changed and where it's going. If I see that looks predictable, then I choose this pair.

yeah i think the safest pairs to trade are the GBP USD and EUR. and they have the smallest spreads.

It seems that everyone thinks EUR is the most suitable。

As a new trader it’s good to use liquid pairs as they don’t move aggressively and give breathing room to you. All the major pairs are great options. No matter which pair you are using, study the fundamentals of underlying economies thoroughly and also try to focus on only one or two pairs in the beginning.

in a real account should trade on major currency but when trading in demo we should trade exotic pairs to see the performance how it works.

As I see you opened this thread almost 15 years ago, but till now the rule is same! New traders need to start with minimum number of trading pair, then be flexible according to your performance; If you are doing well on any specific trading pair, then stay with that pair, and if you are struggling on any particular pair, then practice more on demo! Don’t push any new pair on your live account so directly!

If it's predictable why survival rate is so low? I think it is really use to confuse good results from random wins and make wrong conclusions about your trading approach.

Traders should trade in a non-volatile trading pair like I prefer trading in EURUSD pair to gold trading. This strategy safeguards against balance crashes. Analyzing a certain pairs is easier than analyzing multiple pairs altogether. Traders should not make things complex rather they should make things simple so that they can go ahead easily.