Is it okay to have a one pair system? | Forex Factory

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Is it okay to have a one pair system?

  • #1
  • First Post: Jan 23, 2007 10:09pm Jan 23, 2007 10:09pm
I'm sure the resounding answer will be a Yes, but I have to ask, Is it alright if my system only does well on one pair? Specifically, I tested it for the Pound with +1068 pips resulting, but the Euro and Swissy were 150-250 pips, probably breakeven after spread. Are the technicals for one pair that much different from another that a discrepancy like this could be justified?

Thanks,
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #2
  • Jan 23, 2007 11:00pm Jan 23, 2007 11:00pm
There are a number of people who make a living trading only the pound. I don't trade it exclusively but looking back on my trading history for the last few months most of my trades have been on the GBP/USD pair.

Terry Walters
  • #3
  • Jan 23, 2007 11:29pm Jan 23, 2007 11:29pm
Quoting andersenws
Are the technicals for one pair that much different from another that a discrepancy like this could be justified?
Technicals are the same, but daily ranges and volatility differ a lot from one pair to another. Also. they may have different cycle widths so yes, I think it is totally justified that a system could perform much better on one pair than on another.
  • #4
  • Jan 23, 2007 11:37pm Jan 23, 2007 11:37pm
Quoting andersenws
I'm sure the resounding answer will be a Yes, but I have to ask, Is it alright if my system only does well on one pair? Specifically, I tested it for the Pound with +1068 pips resulting, but the Euro and Swissy were 150-250 pips, probably breakeven after spread. Are the technicals for one pair that much different from another that a discrepancy like this could be justified?

Thanks,
andersenws

andersenws,
I have to agree with you about a system for one pair. I trade almost exclusively the GBP, but observe other pairs also. Is it true that each has its own unique characteristics? For example, a trend system will work better on the GBP whereas a ranging system might be better on the EURGBP.
  • #5
  • Jan 24, 2007 10:26pm Jan 24, 2007 10:26pm
if you are backtesting, and your system only works on one pair, that is a good sign the system is flawed. a great system can not only make money on different pairs, but also in different markets. this can only be achieved through high level adaptability.
Relax and be happy.
  • #6
  • Jan 24, 2007 11:38pm Jan 24, 2007 11:38pm
Quoting merlin
if you are backtesting, and your system only works on one pair, that is a good sign the system is flawed. a great system can not only make money on different pairs, but also in different markets. this can only be achieved through high level adaptability.
Agreed with reservation.

A system that works well on only one pair may be a launch pad for a neutralized clone that works on all pairs.
OR, Perhaps Merlin,
You trade the same system on ALL pairs?
  • #7
  • Jan 25, 2007 1:08am Jan 25, 2007 1:08am
I would think that a system that only works on one pair is bound to fail when the personailty of that pair changes. i.e. 12 months later.

Andersenws indicated that it was still profitable on others though. That's always a plus! LOL

If your system's creating fantastic pips on a particular pair right now though, who's to argue with continuing with that strategy until it shows otherwise?
Bundy's status today: "Waiting..."
  • #8
  • Jan 25, 2007 9:19am Jan 25, 2007 9:19am
In general a good system should show similar results for at least a few pairs.

However, If you have found a niche solution for a particular pair and you think it really works, go for it.
  • #9
  • Jan 25, 2007 9:46am Jan 25, 2007 9:46am
Quoting Bemac
OR, Perhaps Merlin,
You trade the same system on ALL pairs?
i dont have any hard and fast rules about this, but i at least trade a few pairs with every system. i trade a portfolio of systems, so i choose the pairs to trade based on many factors, such as coorelation with other systems, how much i have at risk on a single pair etc.

another point, if you have a system behind your system development, the resulting system will very rarely only work on only one pair.
Relax and be happy.
  • #10
  • Last Post: Jan 25, 2007 9:51am Jan 25, 2007 9:51am
I don't really see a problem with it if your comfortable.

For instance, the only currency i can manage to make a profit on really, is GBP/USD at the moment, the more time i spend watching it develop, the more accurate my trades are getting.

They are only small trades but for instance today i've done 4 trades today and managed 54 pips in total - but i'm comfortable with it!

I think you just need to develop a system that suits you, demo it on other currencies, and if it works on there, then great!
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