One Pair, Two Pair, Three Pair, More?

[dwaddell]

Hi all,

I'm about to get back into the swing of things after the break, one question which I'd like some opinions on:

Should I trade just one pair, like EURUSD for a higher position size or trade multiple pairs for smaller position sizes on each. I'd been sticking with EURUSD but started following GBPUSD, however, other than greater volatility and the good and bad that comes with that, is there any point to trading both, rather than a single pair, given that these two 'generally' trend in all the same places?

Dave

 

[turtle trader]

Dave

One option is to trade both EUR & GBP, but instead of holding positions in both simultaneously, decide which is showing more strength/weakness and trade accordingly. For example:

Both pairs are currently 'drifitng' lower on hourly charts, and are near the top of the range. Say you trade off 10 min charts & see a short setup developing on both pairs. Moving out to 240 minute charts clearly shows that GBP has dropped further today than EUR, and the daily charts show that whilst EUR has taken out it's Dec high and 100 EMA, GBP is still below both.

The longer timeframe charts demonstrate that GBP is currently weaker than EUR, therefore if you have a short setup on both, GBP is the safer trade.

That's what I do anyway, hope it's useful

Simon