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Optimal number of FX pairs to track?

  • #1
  • First Post: Sep 14, 2016 8:07am Sep 14, 2016 8:07am
I have been trading FX now for over 10 months and I believe that I have the trend following, trade entry, and most of the exit strategy solidified to what will be successful in making money. I have tested out my trading strategy and the results are decent. But I realize that in testing, I am always going to be focused as each bar is pushed along in 1 or 2 second intervals until my entry set up shows. I would enter the test trade, apply my money mgmt rules. I always have decent results which shows that my system and risk mgmt is good.

But in real trading, you are not looking at every 1 minute bar all the time so I divided my results by 3 (8 hour trading day) to get the a more realistic result and realized that I wouldn't make much in terms of a living trading 1 pair for 8 hours a day. So...of course you would like to trade as many pairs as possible to multiply the results. The problem is --- how many can I track without diluting my attention?? I noticed before I was tracking 25 to 30 pairs by putting in alerts and floating around to the alerts. But I found that I was just too distracted thinking about missing a better set up. I was not trading enough traking too many things. I was tracking more than I was trading.

I would like to get input on what everyone is tracking in these terms:

1. How many pairs do you track
2. What are the best pairs to track for the best opportunities (spread, movement)


Your input would be really helpful to my insight.
  • #2
  • Sep 14, 2016 8:57am Sep 14, 2016 8:57am
It depends on your strategy;
- If you are working the 1h bars you can have more - if 1m then you will struggle with many pairs
- Consider also some pairs increase your exposure to your 2% per trade if used together ie USDJPY and EURJPY both long but JPY bad news out and you are double risk in exposure.
- if you have few and far between signals on your strategy you can have more pairs as you will not get close to margin limits on the account due to many open positions
- different pairs will have different expectancies on your strategy - do a back test - some might not be worth having - ie if you work with short SL the a GBP with long wicks might be a bad choice... or a one way trending AUD might be bad for a ranging strategy

I work with 8 personally. but this is useless info on its own to you. as would the strategy because its not developed around you (and your life) but me (and mine) - (factors such as disposable income, personality, spare time, access to PC...)

hope this helps
ps advice - start with fewer pairs on a small account and work up
  • #3
  • Sep 14, 2016 9:17am Sep 14, 2016 9:17am
- I track 28 pairs

- Spread

- ATR Rm up Rm down

- ADX

- Trend

- strength

- Trend / CounterTrend

- Candle M5 M15 H1 H4 D1

- Pivots

- Momentum

- Stochastik

- Hi / Lo

- Fibonacci Hi / Lo
  • #4
  • Sep 14, 2016 9:20am Sep 14, 2016 9:20am
Hi,

I guess it all depends on which time frame you are trading, otherwise the numbers of pairs would be irrevelant, also, I might say that if you have not it figured out yet then you are not ready to trade more than pocket money.
LDFX Trading Ltd
  • #5
  • Sep 14, 2016 2:07pm Sep 14, 2016 2:07pm
Quoting luigy
It depends on your strategy; - If you are working the 1h bars you can have more - if 1m then you will struggle with many pairs - Consider also some pairs increase your exposure to your 2% per trade if used together ie USDJPY and EURJPY both long but JPY bad news out and you are double risk in exposure. - if you have few and far between signals on your strategy you can have more pairs as you will not get close to margin limits on the account due to many open positions - different pairs will have different expectancies on your strategy - do a back...
Thanks - great input Luigy! I am not trying to trade part time - currently I am giving this full time effort. The system is more short term and I do not try to hold position for days at a time. I do have a small loss parameter but I am not a scalper. I have tested versions of my strategy varying the stop loss and profit taking parameters and they all have a decent result. It is just my psychology in sitting and waiting for the signals and I tune out a bit when nothing happens just tracking one or 2 pairs. But when I have many I am just so scattered trying to track them all.

What time frame do you trade? Are you full time?
  • #6
  • Sep 14, 2016 2:10pm Sep 14, 2016 2:10pm
Quoting LDFX
Hi, I guess it all depends on which time frame you are trading, otherwise the numbers of pairs would be irrevelant, also, I might say that if you have not it figured out yet then you are not ready to trade more than pocket money.
Thanks How long is your time frame?
  • #7
  • Sep 14, 2016 2:12pm Sep 14, 2016 2:12pm
5~8 pairs is best for normal people. You will be lost if too much.
Inner Trader
  • #8
  • Edited 4:03am Sep 15, 2016 3:15am | Edited 4:03am
Quoting gloo68
{quote} Thanks How long is your time frame?

1 minute chart, maximum 2 pairs (eurusd, usdjpy)

what is your time frame?
LDFX Trading Ltd
  • #9
  • Sep 15, 2016 5:56am Sep 15, 2016 5:56am
Concentrate on one or two pairs for intra-day, any more than this is a unnecessary and destructive to your trading. If you cannot make a living from forex from one single pair, then you will not be able to do so from three or four.
  • #10
  • Sep 15, 2016 7:40pm Sep 15, 2016 7:40pm
I track 10 pairs. On a given day, I will trade 4-6 of these pairs, depending on which ones are structurally sound for trading. I will then actually enter trades on any of the "approved" pairs that present good trading opportunities. As for the "best pairs to trade", the spread is not a determining factor. Only market structure, set ups, and opportunity/risk matters.
  • #11
  • Sep 16, 2016 4:40pm Sep 16, 2016 4:40pm
Quoting gloo68
{quote} What time frame do you trade? Are you full time?
4h part time. I check at 10am, 2pm, 6pm, 10pm - miss 2am and 6am (GMT)
candle patterns tend to be more reliable. I use IKH 9 26 52 but candle patterns and S/R trump indicator signals - mostly to tighten stops.
the advantage of a larger time frame is also once mastered you have a life during the day to do other things b4 having to worry about the next signals.

good luck. but more importantly do your back checks. manually is best/more productive
  • #12
  • Sep 16, 2016 5:13pm Sep 16, 2016 5:13pm
u need to know the 4 wize man ......

cabel will connction you , eur will feed da sloul , chf will staight u up , yen will will give a solder to loay down if u feel lonny ......
da rest just folo .....

learn ech one properly , it easy to get to 3rd base .... so 4 x 3 is 12 ... so 12 devide by 3 is 4 ... 12 devide by 4 is 3 ... WWWOOOOWWWW ...........

scalp , dai trade any thiggy from tick to 30 min look good , swing posst 1 h or later is great .........

ask u self how mach sl you can evord .... how much time is the time u can spen ...... u will find it so clear ..... brigter then the light at the end of the turtule


juice 2 cent
  • #13
  • Sep 17, 2016 7:12am Sep 17, 2016 7:12am
Quoting GEfx
I track 10 pairs. On a given day, I will trade 4-6 of these pairs, depending on which ones are structurally sound for trading. I will then actually enter trades on any of the "approved" pairs that present good trading opportunities. As for the "best pairs to trade", the spread is not a determining factor. Only market structure, set ups, and opportunity/risk matters.

The numbers of pairs without specifying the time frame is irrelevant.

One would be much busier with one pair on a 1 minute chart that the guy trading 20 pairs on the daily time frame, you should have began by telling which time frame you do trade, that is why your post is useless.
LDFX Trading Ltd
  • #14
  • Sep 17, 2016 7:15am Sep 17, 2016 7:15am
Quoting cat
Concentrate on one or two pairs for intra-day, any more than this is a unnecessary and destructive to your trading. If you cannot make a living from forex from one single pair, then you will not be able to do so from three or four.

yes, that is it, it doesn't need to be more eloquent.
LDFX Trading Ltd
  • #15
  • Sep 17, 2016 7:21am Sep 17, 2016 7:21am
Quoting luigy
{quote} 4h part time. I check at 10am, 2pm, 6pm, 10pm - miss 2am and 6am (GMT) candle patterns tend to be more reliable. I use IKH 9 26 52 but candle patterns and S/R trump indicator signals - mostly to tighten stops. the advantage of a larger time frame is also once mastered you have a life during the day to do other things b4 having to worry about the next signals. good luck. but more importantly do your back checks. manually is best/more productive
Thanks for your post which at least said the time frame used.

In in my humble opinion I do agree with the fact that higher time frames gives you "detachment" which is important to not call in your emotions but in the other hand you will have much slower feedback about your trading.

I will try to explain my meaning with my example, I do average 700 trades a month, after even 1 week I could say if a strategy smells bad, other will need a year or even more...
LDFX Trading Ltd
  • #16
  • Last Post: Sep 20, 2016 7:30pm Sep 20, 2016 7:30pm
Quoting LDFX
{quote} The numbers of pairs without specifying the time frame is irrelevant. One would be much busier with one pair on a 1 minute chart that the guy trading 20 pairs on the daily time frame, you should have began by telling which time frame you do trade, that is why your post is useless.
Sorry, but time frame was not included in the questions. If you want to talk about time frames, why don't you start your own thread titles, "Optimal number of FX pairs to track and time frames", or something line that. If the OP wants to talk about time frames, they'll introduce it as an addition to the thread. Until then...
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