currency correlations
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Thread: currency correlations

  1. #1
    So I was thinking of trading non-correlated currency pairs. But reading from investopedia, it is said that correlations do change. What exactly the hell is the point of paying attention to these things?
    Although I believe it's stupid to extended gbpusd and brief eurousd in the same time, but some people fear being long gbpusd and eurousd in the same time cause they fear of losing twice in a row. My experience have shown that higher trade frequency GIVEN THAT you're MONITORING YOUR AVAILABLE MARGIN AND RISK, is quite beneficial in terms of likelihood of achievement....

    Exactly what do you guys think????

  2. #2
    I believe it is of paramount significance in terms of money management, because trading high-correlated pairs in precisely the same time, raises your risk variable in the end.

    As for significance shing in time, yes, it is true, but not so much. Just have a look at the correlation between EURUSD, USDCHF and GBPUSD in the last years, they're most of the time pushed by the USD part.

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