Have you ever looked at how the three pairs move in conjunction or relation to each other?Each of the pairs has its own side of story.Sometimes the other will lead ,somedays the next pair does.One also leads one almost always follows. This could be a hidden gem, since the three "always" go everywhere together during my observation. Yes they do split sometimes but in the end they always band back together. With higher TF's we could see the main direction of where it should go,no matter how far it went even towards 1000 - 2000 far apart in due time it will go back to its direction, like the sun.
In retrospect this could be absolutely powerful tool,even more than very long term trend.The trend as you can see ,even the most powerful/longer ones will change in due time,its past cannot foresee the future,the train will run but you wont know for sure how much fuel is left, you will be playing a guessing game which its why so many has failed in forex.The notable difference is that with this 'tool'/correlation we could see the destination, yes the destination matters, its what matters most. Twist and turn it be, but reaching the predetermined place it will.Think about it, i did not see anyone teaches this anywhere,even if they do its incomplete or vague at best. Combine it hedging / locking then you will minimize those DD's.
Nowadays i also have traded additional pairs ,EURUSD as well as EURGBP.The signals on EURGBP has become a bit rare ,even waiting for weeks now. I had placed a trade on EURUSD naked based on correlation out of boredom , and reached +60 quickly. I had thoughts that maybe i could ditch all of those technical analysis and just place the trade at random, knowing the main direction provided. The risk had to be determined before hand,but we know since we could calculate the maximum deviation by the charts a max of -200p DD should work since i'm looking at statistics here. Backtest is good to calculate max drawdown.Using sl's we could be stopped out anyhow.But without currency exposure,how could we profit? Stops/hedge, lock whatever must be large enough to account for currency fluctuations ,by fluctuation i could mean 50 -150p up/down. Throw the risk/reward out of the window here ,thats only good to lose your account eventually.Statistics are what matter here. A boxer couldnt win any match after suffering 2 - 3 punches and gave up.He wont be champ forever. He must absorb it and keep duking it out. A 50 pip sl and 100 p tp? no way, i had not make it work ever.
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