well im sure someone else has also thought of this but ill post it anyways as im looking for advice/comments on this.
well the idea would be lets say you have a trading system from EUR/USD. since EUR/USD is like 95% the exact opposite of USD/CHF couldnt you have your buy signal from EUR/USD also be your sell signal for USD/CHF? and vice versa. you wouldnt use a USD/CHF strategy (though you could and use opposite signals for EUR/USD) just a EUR/USD strategy to trade both currency pairs
So really your taking two trades at once instead of just trading EUR/USD. does anyone know how well that would work? or any opinions/advice on this topic?
You are correct that Eur/Usd and Usd/Chf have a negative correlation of 95% (give or take on different months). But I would pose the questions to you…why would you buy eur/usd and sell usd/chf…why not just double your lot sizes on Eur/Usd ?
I understand what you are saying, but if you are buying one and selling the other, you may as well just buy or sell one of them and work with larger lot sizes.
u shud edit your post your embarassing me lol
your point is very true, and i didnt realize that, well i did but at the time i wasnt thinking of it
i guess your better off just doubling your lot size then lol
I used to trade like this…but not for long. The problem. Correlation is great, they mostly more completely opposite, but they never move the same amount.
The only time I was profitable with this was after 5pm est while both of these pairs are ranging. Just get in and out quick.
lol