Is risk diversification even possible in the forex market? - page 7
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It is not possible to increase the risks without increasing them.
Right?
If I knew the answer to that question, I wouldn't have made the post.
But how can you trade 10 trades a day - if it is risky to hold all your positions at once in the forex market?
Why the risk per trade? It is more correct to operate with a maximum drawdown rather than a single trade.
Diversification can be done everywhere.
Why the risk per trade? It is more correct to operate with a maximum drawdown rather than a single trade.
Diversification can be done everywhere.
The essence of the question is how to obtain the same statistics while trading 10 tools simultaneously (e.g., at expiration of 100 trades), as if I traded them individually.
P.S. What ideas can you offer in terms of diversification?
Who cares?
The point of the question is how to get the same statistics while trading 10 instruments simultaneously (e.g. at the end of 100 trades), as if I traded them individually.
P.S. What ideas can you offer in terms of diversification?
You want to earn more without increasing your deposit with one strategy. There are no diversification options here, only increasing risk.
I want to earn NOT less - for the same number of trades.
(For example 100 trades.)
Just narrow down 100 trades by a factor of time.
(By a factor of 10.)
Where did you read that I want to earn more? )
I want to earn NOT less - for the same number of trades.
(For example 100 trades.)
Just narrow down 100 trades in time.
(By a factor of 10.)
I believe that trading multiple instruments (with the same deposit load) compared to trading a single instrument reduces risk even when using a single strategy in trading. This is explained by the fact that maximum drawdown for each instrument occurs at different times. I checked on the history for the major majors using my Expert Advisor. The maximal drawdown (total drawdown) when trading several currencies is usually calculated as a geometric mean of the maximal drawdowns of separate currency pairs. It turns out that the total profit is simply summing up the profits of individual currency pairs, while the maximum drawdown is the geometric average. Due to this, the recovery factor increases when trading multiple currencies.
I gave an example with GBP/AUD (USD, JPY, NZD), where I was in 4 positions and was taken out of all 4 of them by the 1st move.
As for me - in this situation there is no way to reduce the risk.
So I charged GBP (in pairs related to it) with 4 times bigger lot than allowed.
Do you get my drift?
Look at this:
I gave an example with GBP/AUD(USD, JPY, NZD) where I was in 4 positions and I was taken out of all 4 by the 1st move.
As for me - in this situation there is no way to reduce the risk.
So I charged GBP (in pairs related to it) with 4 times bigger lot than allowed.
Do you follow me?