What pairs to trade for best performance | Forex Factory

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What pairs to trade for best performance

  • #1
  • First Post: Apr 9, 2014 2:51am Apr 9, 2014 2:51am
I have a doubt maybe someone can help me out.

I have a trading style that made me this profit last month. The question is how to optmize it. Wich pairs should one dump and increase trading in others?

EUR_USD : 2600€ profit using 15 lots. average open trade time: 435 minutes.
GBP_USD: 3500€ profit using 26 lots. average open trade time: 115 minutes.
USD_JPY: 760€ profit using 3 lots. average open trade time: 4512 minutes.
EUR_JPY: 4250€ profit using 23 lots. average open trade time: 297 minutes.

How to mesure this? Wich one to pick? Just one, or a combination of two ? Or three?
  • #2
  • Apr 9, 2014 3:01am Apr 9, 2014 3:01am
One month of data doesn't mean much, do it for another month and the results may be totally different. If you get these results consistently then you can use them to make a decision.
si hoc legere scis nimium eruditionis habes
  • #3
  • Apr 9, 2014 3:07am Apr 9, 2014 3:07am
Quoting sconcha
I have a doubt maybe someone can help me out. I have a trading style that made me this profit last month. The question is how to optmize it. Wich pairs should one dump and increase trading in others? EUR_USD : 2600€ profit using 15 lots. average open trade time: 435 minutes. GBP_USD: 3500€ profit using 26 lots. average open trade time: 115 minutes. USD_JPY: 760€ profit using 3 lots. average open trade time: 4512 minutes. EUR_JPY: 4250€ profit using 23 lots. average open trade time: 297 minutes. How to mesure this? Wich one to pick? Just one, or...
measure it like so:

USDJPY 760/3 = 253,3
GBPUSD 3500/26= 134,6

Higher number = better pair. So in this case USDJPY is much better than GBP. In another words just use logic
  • #4
  • Apr 9, 2014 3:18am Apr 9, 2014 3:18am
GBPUSD > EURJPY > EURUSD,

Obviously you have a lot of confidence in these pairs and in this order too.
  • #5
  • Apr 9, 2014 3:29am Apr 9, 2014 3:29am
Quoting Vitez
{quote} measure it like so: USDJPY 760/3 = 253,3 GBPUSD 3500/26= 134,6 Higher number = better pair. So in this case USDJPY is much better than GBP. In another words just use logic
Thanks for the reply Vitez,but you take no consideration the time? USDJPY takes a great amout of time to close trades. I think time must have it's "space" in the formula to calculate wich pair is better.
  • #6
  • Apr 9, 2014 3:30am Apr 9, 2014 3:30am
Quoting Danny Maina
GBPUSD > EURJPY > EURUSD, Obviously you have a lot of confidence in these pairs and in this order too.
Thanks for the reply Danny
Care to explain how you reach that conclusion?
  • #7
  • Apr 9, 2014 5:04am Apr 9, 2014 5:04am
Gold/USD and Silver/USD.
  • #8
  • Apr 9, 2014 6:01am Apr 9, 2014 6:01am
Quoting sconcha
{quote} Thanks for the reply Danny Care to explain how you reach that conclusion?
Most number of lots on the GU in the least time;

The EJ is naturally volatile

and the eurusd is the midway between the those two
  • #9
  • Apr 9, 2014 7:31am Apr 9, 2014 7:31am
You are making good money trading all four, why not stick with it. If something is not broken then don't fix it.
  • #10
  • Apr 9, 2014 7:49am Apr 9, 2014 7:49am
Quoting johnvr
You are making good money trading all four, why not stick with it. If something is not broken then don't fix it.

You are right, i think it is in our human nature to try and get the most we can.

Maybe thinking pairs over complicates things.
Lets say you own a shoe factory.
You produce 4 types of shoes (A,B,C and D).

You only have 67 units of raw materials to produce it.
You know that Shoe A required 15 units of raw materials and was produced in 435 minutes of your factory time. Same goes to the others.

Obviously you want to optimize your production and sell as many shoes you can. To optmize your production what would you do ?
  • #11
  • Apr 9, 2014 3:59pm Apr 9, 2014 3:59pm
Quoting sconcha
{quote} Thanks for the reply Vitez,but you take no consideration the time? USDJPY takes a great amout of time to close trades. I think time must have it's "space" in the formula to calculate wich pair is better.
divide with minutes:

USDJPY 760/3 = 253,3/4512 = 0.056
GBPUSD 3500/26= 134,6/115 = 1,17

GBPUSD is the winner form the two.
  • #12
  • Last Post: Apr 9, 2014 4:40pm Apr 9, 2014 4:40pm
If you trading 1 lot and less then there is not such things as best currency pair to trade. It's like this, we see these currencies paired up all the time and think they are good to trade. But my way of thinking and it has served me well over the past year and a half is to think of each currency as an island, when you can do that then it becomes easier to trade, way easier, EURUSD is good for liquidity but most retailers would never have too much problems on other currencies anyway.

I see it a lot of the time, every single day, at every minute or hour or half hour or what ever time frame you trade. There is one trade that is better than all the rest, by that I mean one currency pair going either up or down is the trade with the least risk and most profits, but most traders never bother to look for that trade because they already limit themselves to currency pairs and biases that are not in line with what the market is saying.

What you have to do is move away from the crowd and find a spot in the market where things are nice and safe. It's easier said than done but it's worth the research.
Being a trader is lonely, but being a great trader is lonelier still
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