Trading only one pair is fair enough, as TK's strategy seems profitable for those who stick with it (and remember when he first posted, only one pair showed to be great!). However, as I posted earlier, I think trading only one pair is less profitable. Not to talk about the risk, which IMHO can be lighter trading more than one.
Just to elaborate on that, I was out GBP/JPY this week. I Traded GBP/CHF, GBP/USD and EUR/USD. In the end I got net profits of over 500 pips. If I had chosen only GBP/JPY it would be great for this week. But we cannot predict that kinda movement every week.
Just imagine, for whatever reason, what would be like if one have chosen to trade on only GBP/USD this week...
Just my 2 cents...
But for this strategy I'm going to stick with one currency for now to keep it simple. I fear that if I have to choose then I'll be kicking myself whenever the pair I didn't choose does well. I don't want to get into a the-pips-are-always-greener-on-the-other-side mentality.
See, with other strategies that are based on some pattern forming or some alignment of indicator values, then it's easy to choose which pair to trade: Trade the one where the setup is ready. But with this strategy, the only real setup is time itself, i.e. wait for the new week to begin...so every single week every single pair is ready to go. But which one will make the big move? A tricky question. I'm starting to see Kimble's wisdom in not changing anything.
In the end this strategy is really just based on a simple statistics: Most weeks, price will eventuallt make a substantial move one way or the other. A weekly candle where doesn't does not move much would look like a doji or spinning top. As Kimble pointed out long ago in this thread, just looking at a weekly chart is very telling. You'll see that the probability of a weekly bar that is a small doji/spinning top is quite low. It seems to happen much less than 50% of the time, something like 25% to 33% of the time. Of course the question becomes: How many times will you be stopped out before the eventual big move? Well as long as the stop loss level is kept tight (like 30 pips) then once price does take off, it should more than make up for the losses, in the long run.
