day trading during London session

Hi there, I need a little help over here.

I'm currently doing some back-testing for a day trading strategy on EUR/USD trading during most of the London session from 08:00 GMT to 16:00 GMT.
EUR/USD seems to be doing fine so far, so I was wondering, what other pairs would be good candidates for day trading during the London session?

I'm looking for diversity, I don't want to watch three pairs giving me the same long/short signals at the exact same time...

Any suggestions?

OK, I've found a correlation table at Oanda. The description of the table values says:

* 0.0 to 0.2 Very weak to negligible correlation
* 0.2 to 0.4 Weak, low correlation (not very significant)
* 0.4 to 0.7 Moderate correlation
* 0.7 to 0.9 Strong, high correlation
* 0.9 to 1.0 Very strong correlation

Positive values of 1 or very close to 1 show that the pairs usually move in the exact same direction, while negatives values of -1 or very close to -1 show that the pairs usually move in the exact opposite direction.

So...if I want diversity I have to look for those pairs with correlation values around 0, that would mean that they don't move in the exact same direction and they don't move in the exact opposite direction either, right?

According to this table, USD/JPY and EUR/GBP are (in the long term) the ones which don't have a high positive or negative correlation with EUR/USD, am I right?

Regardless of the correlation issue, if you are looking to exclusively intraday the London session, GBP-crosses (not only GBPUSD, but all the GBP-pairs) are a must have on your list. They are the best movers across the board during London session by far. They have a better spread-to-ATR ratio than EUR-crosses.

Eur/Jpy has some good moves during UK trading and the spreads are pretty good.

I like it as my none USD pair

Mart

Thanks for the help 1kt guys, back to work on more back-testing now...

what kind of trader am I?
Well, one of the first questions to ask is, “how much time do I have to trade currencies and how long can I comfortably be in a position?”
We can identify different trading personalities by timeframe. Take a look at these different styles and see which one may fit you.

1. Scalping – Scalpers are very short-term traders, usually in and out of trades within seconds. Most forex brokers discourage this type of trading. It’s also extremely dangerous due the high number of lots required to make a decent profit off a couple pips. Not for the faint of heart or shallow pockets.
2. Day traders – Day traders open and close positions in the same trading session.
3. Swing traders – Swing trading holds trades for days.
4. Position trading – Long term position traders hold trades from weeks to months at a time.

Next question to ask is, “how do I want to analyze the market and decide on which trades to take?”

1. Technical Analysis – using charts and technical indicators to analyze the past price movements of a currency pair to possibly see where the price may go in the future.
2. Fundamental Analysis – Watching and analyzing economic news reports and indicators such as GDP, CPI, Employment data, or any political news that may affect a country’s economy and their currency.