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A challenge for you

  • #1
  • First Post: Feb 21, 2006 6:51pm Feb 21, 2006 6:51pm
When I started with Forex, I opened a bunch of different positions. I figured a balanced portfolio would be less risky. Now that I've got a feel for things, I want to get serious and close some of these out. I have 1 lot in each of the following:

long: AUDJPY CHFJPY EURJPY GBPCHF

short: USDCAD USDJPY EURUSD

I have 6 lots worth of free money in my account.

What's a graceful way to get rid of these, and/or which ones should I hold onto?

Thanks a lot. I hope you enjoy this little problem of mine
  • #2
  • Feb 21, 2006 9:19pm Feb 21, 2006 9:19pm
Hmmm..I have been straying away from crosses...
I think a trader should focus on one or two pairs
  • #3
  • Feb 21, 2006 11:06pm Feb 21, 2006 11:06pm
Quoting Mike Jolley
When I started with Forex, I opened a bunch of different positions. I figured a balanced portfolio would be less risky. Now that I've got a feel for things, I want to get serious and close some of these out. I have 1 lot in each of the following:

long: AUDJPY CHFJPY EURJPY GBPCHF

short: USDCAD USDJPY EURUSD

I have 6 lots worth of free money in my account.

What's a graceful way to get rid of these, and/or which ones should I hold onto?

Thanks a lot. I hope you enjoy this little problem of mine
Simple, sell your loses and hold on to your winners.

Simon
  • #4
  • Feb 21, 2006 11:08pm Feb 21, 2006 11:08pm
In fact, come to think of it, you should get out of all your positions, work out a system that you are going to use, and then start trading again. Don't just blindly put positions on. If you want to do that, let me know and I will pass on my bank account details and you can transfer all of your funds to me. It will just cut out the middle man.

Simon
  • #5
  • Feb 22, 2006 12:15am Feb 22, 2006 12:15am
I didn't blindly put my positions on. I looked at the strongest and weakest currencies on the long term charts and paired them up.

I found that JPY was the weakest currency on the daily, weekly, and monthly charts, so I bet against it. Unfortunately, it kicked my ass tonight while I was out shopping. I didn't see that ninja move coming.

But really, if you think about it, why should I keep my reserve money in USD? Shouldn't I keep my money in a currency that's been stronger than USD such as CAD EUR GBP?

Thanks again.
  • #6
  • Feb 22, 2006 12:26am Feb 22, 2006 12:26am
Oh yeah, the Yen move. This has simplified my positions as I no longer have any related to JPY

I'd still like to know the answer to the original problem, but I must admit that I've closed everything for a shot at some GBP volatility. I caught a great pin and some triangles and I hope this goes well.

Thanks all.
  • #7
  • Feb 22, 2006 6:35pm Feb 22, 2006 6:35pm
If you have got a plan for what you are doing, why are you on the forum asking what you should do to get out of your positions?

Simon
  • #8
  • Feb 23, 2006 2:33am Feb 23, 2006 2:33am
Quoting Mike Jolley
When I started with Forex, I opened a bunch of different positions. I figured a balanced portfolio would be less risky. Now that I've got a feel for things, I want to get serious and close some of these out. I have 1 lot in each of the following:

long: AUDJPY CHFJPY EURJPY GBPCHF

short: USDCAD USDJPY EURUSD

I have 6 lots worth of free money in my account.

What's a graceful way to get rid of these, and/or which ones should I hold onto?

Thanks a lot. I hope you enjoy this little problem of mine
At the first you should close the most correlated pairs. It is like doubling your positions.

I have calculated for some pairs and here are some results:

http://buymeridia.info/images/correlations.jpg

Pairs marked in red are correlated. The more closer to 1 there is correlated more. It is based on 4H data. 527 cases (big amount of data in statistics).
  • #9
  • Feb 24, 2006 3:57pm Feb 24, 2006 3:57pm
Wow, that's exactly the kind of info I was hoping for. I've been confused about the relationships among the pairs and your table nails that. Thanks.
  • #10
  • Feb 28, 2006 2:48pm Feb 28, 2006 2:48pm
In the Solar System, there are nine planets in total - Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, Neptune and Pluto. The planets all revolve around the Sun.

If you plot an X-Y graph with the Sun at coordinates (0,0) you can find the locations of the other 9 planets.

With the push and pull forces of the planets and the Sun they move in a logical order. If any of them move in the wrong way there will be cosmic chaos.

When one of the planets move in the wrong way the push and pull forces of the other planets will cause that straying planet to move back into the right path.
  • #11
  • Last Post: May 20, 2011 2:21am May 20, 2011 2:21am
Quoting linkarr
Hmmm..I have been straying away from crosses...
I think a trader should focus on one or two pairs
I could not agree more, unless one is able to stay constantly focused on several positions (maybe you should not even try unless you are a woman :-))

Cheers
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