Quote:
Originally Posted by n_aftab
Just a quick question really, but whats reason are you tracking so many pairs?
Some of them are so strongly correlated its as though your opening the same position several times.
N
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It is plain suicide to trade so many pairs at once. And i agree the aud/usd and eur/usd and gbp/usd correlate. If the dollar weakens then they all go up or if the dollar strengthens then they all go down. The same goes for all the Jpy pairs. So why would you wanna go long on all 3 those pairs at the same time? You only tripple your risk.
I am sure this is a fun system but in my opinion this is a recipe for disaster.
This reminds me of a system i came across a while ago with a dude that said he turned $1000 into $100 000 in a week's time. What he didnt say was that in previous attempts he lost numerous accounts trying to do so. He doesnt even have a trading strategie. All he does is put in one 10 lot on gbp/jpy, then turn the computer off and go to sleep. In the morning he has either made a few grand or lost his whole account.