Complimentary pairs?
Is there a list of complimentary pairs, like USD/JPY generally moves opposite to EUR/USD etc?
Found it, thanks
G/J and G/U
Daily, no indicator system
Hi all
I have an idea and want to see what your opinions are. most of us know that EUR/USD and USD/CHF are in almost perfect correlation with each other. In fact, they are 99% in unison. I attached a pic of both pairs on a monthly time frame to illustrate this. It goes back for a few years and you can see that they are opposite. Where one goes up the other drops.
So any way I was thinking that there has to be a way to exploit this. So i was thinking and playing with the thought of what if we were to buy both pairs. What you would do is buy (for example) 1 lot of EUR/USD and buy 1 lot of USD/CHF. Now put a stop loss of 65 for both and a target profit of 75 for both. Adjust for your spreads so it equals 10 pips. Pretty much every time you will get 10 pips a day. When one of the pairs hits your stop loss the other one hits your T/P shortly after.Now there are days when neither one will hit the stop loss and hit your target profit instead. And then there are also days where your Stop is hit and not your target profit. but those days are very very seldom and make up for each other. Also if none of your targets are hit for that day. Don't do a thing, just wait for them to hit the next day. place your trade at the beginning of each session and check back at the close the next day.This idea works the best on a daily time frame.
Put both charts up and back test them and you will be surprised.
let me know what you all think
Ed
Some thread can be usefull in this case:
silenroc2
Gidday
I have been looking at a similar approach except using sigs from the different pairs
e.g if price goes below ma by X pips on the usd/chf then buy eur/usd an vice versa no SL needed just a TP
Hi Beno
Sounds a bit interesting. how many pips below the MA before you buy into eur/usd, or do you set a limit
that's the hard part but we have to start some where I am looking at a percentage of ATR or something like that it's early days
this pairing has been studied alot on various forums so there is plenty of info out there to read
why make it difficult. If you got patience and no greed, 10 pips a day will yield 200 pps a month. I have a full time day job in this will suit me fine. Anyway, i think MA or any other indicator might fake us out. one thing that might work good is a stoch setting as follow. 15,5,5. it gives very good reliable entry signals.
i agree it's to much, kiss is the best way, but since we both work it needs to be automated
would you agree
yes i agree. but this is what I am going to do. 500PM EST my broker trade session begins. At that time I will place my targets. The next day I come back at 455PM before the new trade day begins. My positions should be all executed and I am in a profit of 10 pips. So then I place the next trade, and so on. for the rest of the week. thats as best as automated as I can get it.
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Is there a list of complimentary pairs, like USD/JPY generally moves opposite to EUR/USD etc?