Is risk diversification even possible in the forex market? - page 9
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See - diversification is necessary to reduce risk. In your case, you opened on the GBP and most likely got exactly under the dynamics of the GBP. It is the same if you buy AUDUSD, NZDUSD, EURUSD and get caught by the movements of the dollar - this diversification is of no use.
Diversify as I showed above -GBPAUD NZDCAD EURUSD for example.
(links, books, etc.).
To understand all possible combinations of currencies that do not affect each other...
The dollar index is not a currency, but an index of several currency pairs "weighted" by and quasi-capitalisation level
Go into detail. Weighted roughly by the level of turnover and shows the strength of the currency against other currencies (analogous to currency trading).
So what's the bottom line for a market-neutral forex portfolio?
So you didn't actually diversify your position - you opened on the pound and the pound took you out.
Read my post of2015.08.09 13:15 carefully.
Go into detail. Weighted roughly by the level of turnover and shows the strength of the currency against other currencies (analogous to currency trading).
So what's the bottom line for a market-neutral forex portfolio?
The dollar index is a geometric weighted average of several currencies.
Some stock indices are calculated in the same way - what is the difference?
I can't remember now.
I've had a lot of these situations on both the demo and the tester...
You can trade on multiple currency pairs without increasing your risk or decreasing your lot. Just wait until the previous position is closed before you open another one. The benefit will be that the number of trades (compared to trading on a single currency pair) will increase.
I was trading in the Strategy Tester like that all the time.
But I won't earn much... (% per month)
+ What is the point of the deposit, which remains idle?
(it does not work.)
Depo should work all the time, in my opinion...
(ideally).
Otherwise, what is the point of forex with its 100 (equal in terms of correlation, if we exaggerate) instruments (at most)
And the large leverage?
Then you can trade in the stock market with such an alignment.
(the profit will be the same +- )
+ there are about 5000 instruments!
(Maz respectively much more ...)
That's understandable.
That's how I've been trading in the tester all the time...
But you can't make much... (% per month)
+ What's the point of a deposit that remains idle?
(it does not work.)
Depo should work all the time, in my opinion...
(ideally)
In order to be able to trade with a high depo load, you need high entry accuracy. If this is not the case, one has to be satisfied with very little.
(or rather its absence, as I understand it in the forex market).
P.S. + what is the load on the depo?
(I still can not understand it)
You have a risk per trade.
If you have a 10% risk then you can't take more than 10 trades at a time.
That's all it seems to me.
Ideally (with proper diversification) it should not matter whether you hold them simultaneously or separately.
If your TS loses all 10 trades in a row - you will lose even at 10% load on the deposit...
If your TS is profitable - then at 100% of the depo load you will be in the plus...
In this case it is not a question of accuracy but of diversification.
(or rather its absence, as I understand it in the forex market.)
P.S. + what is the load on the depo?
(I still can not understand it)
You have a risk per trade.
If you have a 10% risk then you can't take more than 10 trades at a time.
That's all it seems to me.
Ideally, it should not matter whether you hold them simultaneously or separately.
If your TS loses all 10 trades in a row - you will lose even at 10% deposit load...