Quote:
Originally Posted by Lobo
Besides GBp/jpy wich ones are good pairs to use this method (10 pip spread with this currency, no good for me)
I live in NY.
Thanks
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G'day mate, I trade a vew different pairs. I started out by trading heaps of pairs but got burnt by most of them. This system seems to work best with GBP/JPY, and in all honesty, there's usually enough price movement through different timeframes to be able to make good gains with this pair alone. However, if you want to brach out, these are my pics:
EUR/JPY - EUR is a great substitute for GBP. Economically tied together, these currencies are closeley correlated. Spread is lower on this pair and price action is usually very similar. In fact, sometimes I use this pair to confirm decisions I'm making about GBP/JPY.
GBP/CHF - CHF is a great substitute for JPY. Due to their very low swap rates, these currencies are usually used as base currencies for trading strategies. When the global economy is looking good, bot these currencies have a hard time (as investors back high yield currencies). Alternatively, in hard times (like our current US sub-prime concerns), these pairs usually strengthen. Importantly, they tend to weaken or strengthen together. whilst you still might pick a move here that you missed on GBP/JPY, the spread is just as bad. Which bring me to:
EUR/CHF - This pair is slightly sketchier than the others. I think this is because the system is built around GBP/JPY, and this pair uses 'replacement currencies' on both sides of the trade. I've still made some money with it in the past. Oh, and a low spread.
Check out USD as a replacement for GBP or EUR too, but I find it too mentally taxing. The USD pairs using low yield currencies whipsaw too much for my liking.
-Benjimang