Which trade to enter when there's more than one opportunity at the same time?

Oct 04, 2017 at 07:13
1,167 Views
27 Replies
Member Since Dec 08, 2015   4 posts
Oct 04, 2017 at 07:13
Hi Trader,

Just wondering how you decide which trade to enter when there are several opportunities?

Do you check the correlation and pick the one with the strongest trend?

Do you use correlation at all to make sure not to trade two highly correlated pairs at the same time?
Member Since Aug 21, 2017   12 posts
Oct 06, 2017 at 09:31
Why not take them all
Member Since Dec 11, 2015   1487 posts
Oct 08, 2017 at 12:55
Take the trade that seems more likely to make a profit. How to determine that, however, depends on a lot of factors.
Member Since Oct 07, 2017   5 posts
Oct 09, 2017 at 06:31
I suggest you to focus on one forex pair, trading many pairs at the same time will not make good profit. You will never know which trade will make the most profitable trade (market is un-predictable)
Taking high risk is the key to wealth.
Member Since Feb 22, 2011   4862 posts
Oct 09, 2017 at 14:42
mcsuperb posted:
Hi Trader,

Just wondering how you decide which trade to enter when there are several opportunities?

Do you check the correlation and pick the one with the strongest trend?

Do you use correlation at all to make sure not to trade two highly correlated pairs at the same time?

I would say follow your trading plan
If you dont have trading plan do not trade.
If you have trading plan it must clearly define when to enter trade and when dont.
Member Since Feb 12, 2016   427 posts
Oct 12, 2017 at 06:27
And when you define when to enter trade, you can enter on couple pairs at the same time. No need to pick one, two or the strongest one :)
Accept the loss as experience
Member Since Dec 06, 2016   33 posts
Oct 13, 2017 at 09:16
mcsuperb posted:
Hi Trader,

Just wondering how you decide which trade to enter when there are several opportunities?

Do you check the correlation and pick the one with the strongest trend?

Do you use correlation at all to make sure not to trade two highly correlated pairs at the same time?

sometimes finding the 'perfect opportunity' for each trade could be a frantic task and could lead to a point wherein we couldn't decide well. and that's where forex indicators come in, (see https://fto-capital.reviews/index.php/forex-indicators/), use these tools to gauge their landing and pick the better one.
Member Since Oct 19, 2017   2 posts
Oct 20, 2017 at 09:06
one thing that's often overlooked is the volatility to bid-ask spread ratio. if i have x identical signals, i usually go with the one where i have to pay my broker the least for the same perceived risk.
Member Since Mar 20, 2011   44 posts
Oct 22, 2017 at 02:29 (edited Oct 22, 2017 at 02:38)
Since we can't know which trades will be profitable, if the signals meet your trading system there is no reason to try and cherry pick. Doing so invalidates your strategy and makes your odds less than radom.

Trading correlated pairs can work but again this should be part of your strategy, if you take the time in evaluating pairs you will find that some correlated pairs move before the other correlated pair. This could be used as part of a strategy. However, many of these correlations have less volatility so the move is a fraction of the main correlated pair, as such use cautiously.

Assuming, your talking about trades that meet your strategy than there are 2 things to consider:

1) This is when using high leverage is beneficial by allowing you to take multiple trades and having the margin to cover them, Do Not leverage your positions, us the leverage to equalize your position sizing.

2) If you're trading a pair with a pip value of 1$ than size your position so all your trades have a value of or as close to 1$ as possible. This is important to insure a loss is made up with 'A' win, rather than a win and a half for example. Nothing worse than to have a 20 pip loss or 20$ loss and a 40 pip winner but the winner is worth .881 per pip so a profit of 35.24$ rather than 40$ or 39$ or 41$ depending how you position your size.

I think to many traders see leverage as a way to get rich rather than a way to go broke, however, using leverage in a beneficial manner makes a world of difference as well as reducing your overall drawdown by allowing you to equalize your position size.

Above all else follow your system this is the only way to truly evaluate your performance and that of your system.
Member Since Oct 23, 2017   13 posts
Oct 23, 2017 at 14:57
If there at many opportunities, I take them all and then reduce my Lot size for each trade
Member Since Feb 12, 2016   427 posts
Oct 26, 2017 at 15:23
I agree with NicoF1. Exactly what I was talking about 😄
Accept the loss as experience
Member Since Dec 11, 2015   1487 posts
Oct 29, 2017 at 13:59
I, personally, don't keep more than 3-4 positions open at a time, regardless of lot size. I start having a hard time following them all if I have more.
Member Since Oct 12, 2016   855 posts
Oct 30, 2017 at 07:36
The answer is simple.If you are trading manually and you are 100% sure about the profitability of your system and there is a trade set up in each currency pair and you have a money management plan intact along with your trading system, then such a question doesn't arise. You have to enter every trade which meets the trade entry condition.

But again if you follow a thumb rule not to enter more than one trade at a time, then that depends on your past experience and backtesting which should tell you which trade to enter with maximum probability of success.
Artificial General Intelligence
Member Since Oct 29, 2017   10 posts
Oct 30, 2017 at 07:39
NicoF1 posted:
If there at many opportunities, I take them all and then reduce my Lot size for each trade

But where to set the limit? For me it does not seem rational to reduce down to minimal numbers. There has to be some max number depending on the size of the lot. Or what you think?
Member Since Feb 22, 2011   4862 posts
Oct 30, 2017 at 07:59
Mike76 posted:
NicoF1 posted:
If there at many opportunities, I take them all and then reduce my Lot size for each trade

But where to set the limit? For me it does not seem rational to reduce down to minimal numbers. There has to be some max number depending on the size of the lot. Or what you think?

This has to be defined in trading plan!
Member Since Oct 29, 2017   10 posts
Nov 02, 2017 at 07:28
togr posted:
Mike76 posted:
NicoF1 posted:
If there at many opportunities, I take them all and then reduce my Lot size for each trade

But where to set the limit? For me it does not seem rational to reduce down to minimal numbers. There has to be some max number depending on the size of the lot. Or what you think?

This has to be defined in trading plan!

Sounds logical
Member Since Feb 22, 2011   4862 posts
Nov 02, 2017 at 15:58
Mike76 posted:
togr posted:
Mike76 posted:
NicoF1 posted:
If there at many opportunities, I take them all and then reduce my Lot size for each trade

But where to set the limit? For me it does not seem rational to reduce down to minimal numbers. There has to be some max number depending on the size of the lot. Or what you think?

This has to be defined in trading plan!

Sounds logical

There is no other way.
You cant just open trade based on your feelings. You need to execute your trading plan precisely to get consistent results.
Otherwise you wont succeed long term.
Member Since Oct 29, 2017   10 posts
Nov 03, 2017 at 13:54
I have also read that the best traders focus a lot of their time to trading psychology. For not to make decisions by their feelings.
Member Since Nov 04, 2017   13 posts
Dec 14, 2017 at 08:30
mcsuperb posted:
Hi Trader,

Just wondering how you decide which trade to enter when there are several opportunities?

Do you check the correlation and pick the one with the strongest trend?

Do you use correlation at all to make sure not to trade two highly correlated pairs at the same time?





If we are not so experts we can try the ADX since it is just one of those instruments that help us to filter the operations and to discard the ones that have the greatest risk. the ADX index goes down and then falls below the value 30. Therefore, there are no more trends, or at least we must realize that the trend no longer has such strength as to enter with a trade, if we are using a trend following technique. It's a matter of continuing to study and see what is best for us
Member Since Feb 22, 2011   4862 posts
Dec 14, 2017 at 08:54
Adelgrepling posted:
mcsuperb posted:
Hi Trader,

Just wondering how you decide which trade to enter when there are several opportunities?

Do you check the correlation and pick the one with the strongest trend?

Do you use correlation at all to make sure not to trade two highly correlated pairs at the same time?





If we are not so experts we can try the ADX since it is just one of those instruments that help us to filter the operations and to discard the ones that have the greatest risk. the ADX index goes down and then falls below the value 30. Therefore, there are no more trends, or at least we must realize that the trend no longer has such strength as to enter with a trade, if we are using a trend following technique. It's a matter of continuing to study and see what is best for us

It is not about technical setup of some indicator.
It is about following trading plan.
Trading plan could be based on various factors with or without technical indicators.
It needs to be defined if you open another trade or not once conditions are met.
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