When u look into correlation it all just comes down to Money Management. Sometimes it feels like a missed opportunity/profit when u look at a pair and u didnt buy/sell it when the signal was there. But before one starts to accept that there will be lots of missed opportunities out there, one will not succeed i think. There will always be a trade and there will always be missed signals.
How many pairs do u really wanna trade. If u keep it simple, then just trade EURUSD, it is the dominator, and it will keep your mind focused. If u then feel like some more, then move on to 1-4 of the other BIG pairs, but nothing more in my opinion.
It looks good on the Account when u trade many pairs, but when it turns around and make losses, which it eventually will from time to time, then the losses will be very big. Take EURUSD & USDCHF, they are above 90% in correlation. So if u buy EURUSD and sell USDCHF, it will be the same as going double in one of the pairs.
If u dont feel like one pair is giving u enough pips then just increase the lot size according to your risk..BUT only according to your risk defined by your Money Management.
If cash is king, Money Management must be its twin brother.
How many pairs do u really wanna trade. If u keep it simple, then just trade EURUSD, it is the dominator, and it will keep your mind focused. If u then feel like some more, then move on to 1-4 of the other BIG pairs, but nothing more in my opinion.
It looks good on the Account when u trade many pairs, but when it turns around and make losses, which it eventually will from time to time, then the losses will be very big. Take EURUSD & USDCHF, they are above 90% in correlation. So if u buy EURUSD and sell USDCHF, it will be the same as going double in one of the pairs.
If u dont feel like one pair is giving u enough pips then just increase the lot size according to your risk..BUT only according to your risk defined by your Money Management.
If cash is king, Money Management must be its twin brother.