Is risk diversification even possible in the forex market?
Good afternoon.
Here's a question:
Is it even possible to break down risks in any way while trading - by trading multiple instruments?
To put the question in an even simpler way:
Is it possible to trade a dozen instruments in the forex market - without fear of putting all your eggs in 1 basket?
1. On forex, no.
2. No.
Good luck.
Good afternoon.
Here's a question:
Is it even possible to break down risk in any way while trading - by trading multiple instruments?
To put the question even more simply:
Is it possible to trade a dozen instruments in the forex market - without fear of putting all your eggs in 1 basket?
Net ne vazmojna
(If so, which market?)
But is it possible to do it in any (other) market?
(If yes - on which one?).
It's not possible anywhere.
You want the Grail. You want to invest and forget about it, and for it to bring you income.
Here, in the most reliable Soviet savings banks - and even that in the 90s everything burned down, so that no matter how much you diversify, and the only winner is the constant adjustment to the situation. It doesn't matter if it is done with one instrument or ten.
It's not possible anywhere.
You want the Grail. You want to invest and forget about it, and for it to bring you income.
Here, in the most reliable Soviet savings banks - and even that in the 90s everything burned down, so that no matter how much you diversify, and the only winner is the constant adjustment to the situation. And it does not matter whether this is done on a single instrument or a dozen.
(Are you serious?)
If I trade with one symbol (no matter what - because I trade all of them without considering by patterns) in the tester (forex tester-2), I am constantly winning - but if I trade with ten or five or seven symbols simultaneously, I cannot obtain these results.
Therefore, created this thread ...
(I want to understand what the reason).
I think (for now) that it's a matter of diversification.
I entered 4 pairs:
GBP/AUD
GBP/USD
GBP/JPY
GBP/CAD
GBP went against me and all 4 positions went simultaneously.
Do you think there is no difference (in terms of diversification) compared to if I had only gone into 1 well pair out of the ones mentioned above?
Are you always in the black? Why else would you need something else?
I wish I had a tool that I was "always in the black"...
And what is surprising that the TS that works on one instrument does not work on others ?
By the way, can you share your TS, which you are "always on the plus side"?
Are you always in the black? Why else would you do something else?
You don't think that's an argument? )
P.S. I won't be able to share - I trade on patterns...
(>> I do it with my hands.)
>> And what is amazing that the TS which works with one instrument does not work with others?
So it works on all of them.
But only if you don't take more than 1 instrument at a time...
(By "works" I mean a couple of months a year around zero or minus a small otherwise positive month by month - if there's no wild randage. But that doesn't happen more than once every 2-3 years...)
percentages are low in a month.
You think this is not an argument? )
(hands)
Strange, I also trade patterns, but not with my hands but with an EA.
What's the problem with coding patterns?
So it works on all of them.
But only if you don't take more than 1 instrument at a time...
I don't understand... If it works on all of them - then you should use it on all of them...
That's some surprising TS you have...
I think not an argument - increase the lot, and the interest will be higher.
Strange, I also trade patterns, but not with my hands but with an EA.
What's the problem with coding patterns?
I don't understand... If it works for any of them, then you should use it for all of them.
What an amazing TS you have.
I made 1 unit of profit on something - and then, as in the pound, I lost 4 units.
Do you think there is no difference for tactics?
P.S. Coding is not possible.
I have no proper skill in programming ...
(I only have a basic skill).
I'm a website designer myself...
(+ 2 years working on nais 10 years ago...)
>> I think it's not an argument - increase the lot, and the interest will be higher.
What about risk management?
(2-3% because according to classic rules the risk per 1 trade)
What kind of risk are you suggesting to trade with?
Look - I gave you an example.
I made 1 unit of profit on something - then, like in the pound, I lost 4 units.
Do you think there is no difference for TS?
I don't quite understand your example. You are comparing options where you would have entered one pair and four that are moving about the same. Assuming that our total lot is the same, it means that in both cases we lose that lot. Why "four units"? You don't compare the case of entering one pair with one lot, and four pairs with one lot !
And, apparently, it is "not always in the black", since there are losses.
But in any case, the risk is determined by the TS, and not by the number of instruments. In theory, if you have the same TS, the risk will be the same. As it seems to me, there is some sense if you have different TS - in this case, the probability that they will all stop working at once is lower than the probability that our one TS running on four instruments will stop working.
And about "impossible to program" - it means that your definition of patterns is not strict. In one case you will detect a pattern where it's absent, and in the other case you will miss it where it is.
And the risk management?
(2-3% according to the classical rules of risk per 1 trade)?
After all, according to the classical rules, the TS cannot be "in profit all the time".
But, most importantly, the risk per trade, in my opinion, should be determined by the maximum historical drawdown, not by a single rule...
I propose to check what the maximum drawdown would be on, say, a year's history at a risk of 1% per trade. And then increase (or decrease) the risk so that the maximum drawdown becomes 30%.
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Here's a question:
Is it even possible to break down risk in any way while trading - by trading multiple instruments?
To put the question even more simply:
Is it possible to trade a dozen instruments in the forex market - without fear of putting all your eggs in 1 basket?