Pairs correlation conflicting values

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1

Hi everyone, newbie here

I need you insights about a particular topic : pairs correlations

I’ll give you an example : if I want to long EURCAD, I go check correlation values with my already open trades (let’s say I already have a short NZDCHF open and losing)

Now the problem is when the table shows me a positive correlation between the two pairs, it’s conflicting and I don’t know what to do

Shall i close the NZDCHF trade since it’s losing before getting long on EURCAD ? or not open EURCAD at all and wait for the outcome of NZDCHF trade ? Sometimes the NZDCHF (losing position) will turn out profitable and I’ll end up losing money on my new trade

Do you find yourself in similar situations ?

Thanks a lot

2

hi, the correlation between pairs is less important for me. In my opinion, the most important thing, in this case, is the correlation between strategies. Regards Greg

3

I currently use only one strategy (trend following)

4

so, pick fx pairs with low correlation if you using one type of strategy (trend following )

5

Oh, each situation has its own peculiarities, it is difficult for me to give you universal advice.

6

It’s true that sometimes it’s really better to block the drawdown with another asset because it has a more serious potential, but if you see that the drawdown is minimal, then you should save the position and add more, then maybe you will get a larger profit.

7

It seems to me that it is much more convenient to switch to more promising things.
On the other hand, I’ll recommend that you apply both approaches to the demo so that you can work without losses and learn how to define these patterns.

8

Correlation changes all the time and I also feel that all pairs are somehow correlated. Just trade with the chart that has better chances at the moment. Also, try to avoid opening too many orders at the same time.

9

I focus on using just one strategy at a time, mainly price action strategy. According to me, it is the best way of making profits.

10

I have been a forex scalper for so many years. I tried pair correlation but it didn’t work that well for me.