All pairs & thoughts

Hi,
I'm trying to understand about the pairs and the prices. I figured that if 1 pair goes UP, then other pairs must suffer and go down. Likewise, if 1 pair goes down, then others must go up.

Is there something like, a limited amount of juice in Forex? If 1 pair such as the JPY or CHF took juice away from the market, the the EURO could simply not go up anymore....

Obviously if someone were to just flat out purchase all 21 pairs/crosses, you would not make any money, well i haven't calculated it out, but it's doubtful.

I personally think the CHF and JPY are going to take the fall, but maybe it's the Euro....

I knew a guy that bought all the IBFX pairs and once a day avereraged into the losing pairs and had a "close-all" EA installed with a 5% Global TP. He used 1K to trade nanolots with and just kept averaging until his EA got him flat.

He said it worked....but I did not ask the details.

ES

Uh no.

Just think about it for a second. EURUSD has 2 components to it's price right, EUR and the USD. But the EUR's price can be determined thru other pairs, as can the USD.

For instance to get the EURUSD in terms of the JPY you could take 2 pairs, a long EURJPY and a short USDJPY. That would give us a short USD and a long EUR, or an effective long EURUSD. In other words...
EURJPY / USDJPY = EURUSD

Plus or minus a couple pips (depends on arbs).

So when the price of one thing goes up, the price of other components all must compensate. If, in the above example, the EURJPY was barely moving but the USDJPY was rapidly increasing then the resultant EURUSD must decrease in value. Which is exactly what you'd think, an increasing USDJPY would usually mean an increasing USD, which would drive the EURUSD down.

And no if you purchased all pairs you wouldn't make squat, you'd lose money on spreads. If you were trading in the pits you could do triangle arb and make money keeping these relationships in check, but you aren't, so you can't. There is no edge for retail traders here, it's a sure-fired way to lose money. Some people claim they can do the same arb with correlated pairs, but I'm extremely doubtful. I have yet to see math that works there.