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

Member Since Dec 08, 2015  4 posts mcsuperb 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?

PinUpGal

Member Since Aug 21, 2017  9 posts PinUpGal Oct 06 2017 at 09:31
Why not take them all

mlawson71

Member Since Dec 11, 2015  1331 posts mlawson71 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.

RichardSuperFX

Member Since Oct 07, 2017  5 posts SuperFXFund (RichardSuperFX) 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.
togr

Member Since Feb 22, 2011  3409 posts vontogr (togr) 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.

I like what I trade, I trade what I like
TiffanyK

Member Since Feb 12, 2016  306 posts Tiffany (TiffanyK) 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
alfredgervais16

Member Since Dec 06, 2016  33 posts alfredgervais16 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.

lubu

Member Since Oct 19, 2017  2 posts lubu 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.

OnTheEdge

Member Since Mar 20, 2011  32 posts OnTheEdge 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.

NicoF1

Member Since Oct 23, 2017  10 posts NicoF1 Oct 23 2017 at 14:57
If there at many opportunities, I take them all and then reduce my Lot size for each trade

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