DislikedYea. What is the correlation or USD/NOK? I have used negative correlations with success tho, such as USD/CHF is -1 with EUR/USD. Sometimes I just get Euro fatigued.
For instance, I set up a sweet trade short EURO long USD/CHF. Because of the correlation the Euro dropped 40 pips and the USD/CHF gained 40 pips and the pair trade made me happy!Ignored
that is double exposure to same correlation assuming if the correlation holds.
well, maybe you intend to split your trade or risk into 2 orders, 1 eurusd and the other usdchf but oh well...
i'm just saying that's not how u trade correlation, and volatility is different as well. cause in the end you arrive the same conclusion. eur down and usdchf up since u assume a -1 correlation.