TheCyclist posted: And hedging by the way is a fallacy. Very few people I know can keep a fx portfolio hedged. Open a long eurusd and a long usdchf to the same value and see what happens to your NAV...
I agree that it would be hard to do with multiple currencies if you are doing it manually. But using a properly written trading bot, it's not hard to keep the hedge trades properly balanced out. That is a major reason why I use an automated system, it can do all the hard calculations in real time for me, so I don't have to worry about things like that.
I trade 28 currency pairs using a system based upon multiple time frames, trending, spread and a few other things. To do that for 28 pairs manually would extremely difficult. But using an automated system, it's pretty trivial actually.
tolgupde posted: Anyone who trades more than 15 currency pairs at a time? If yes what are they and do you usually win or lose? I would like to hear from you.
I profitably trade multiple currency pairs.
forexalertsystem posted: easy to spot a newbie, they want to trade everything at the same time.... LOL Fast way to be good at nothing and lose your account....
It is flawed logic to assume someone is a newbie trader based upon the number of currency pairs they happen to be watching.
If a trader has a strategy that works on multiple currency pairs profitably, and if the trader is happy with the growth rate of their account, that doesn't qualify them as a newbie. I would say the person is smart and trades with an effective multiple currency strategy.
Analyzing multiple currency pairs, means greater possible trading opportunities.
For example: A trader decided that they will trade 3 currency pairs. EURUSD, GBPAUD, GBPJPY.
They also decided that they are using a simple moving average crossover strategy, with SMA 20, and SMA 100. The trader would then have to sit there and watch their charts waiting for the crossover, and hope they do miss the crossover event.
To increase the efficiency of the trading strategy, the trader might decide to automate their system.
It isn't very difficult to create an automated trading system that can analyze a large number of currency pairs according to a strict basic set of rules.
The system can then either automatically place the order for the trader, or the trader could be notified by the system of the opportunity that it has found.
The trader might also take into consideration the account balance, equity, spread, volume, and a few other things which could determine the maximum number of positions to have open at once.
Simply because there are 30 pairs being analyzed, does not mean the trader is going to open 30 trades all at once.
Jayakumar posted: Its better to restrict your trade to few pairs...then only you can feel the pulse of the particular pair and understand the trend. I watch only EUR/USD and able to predict the trend
That's not true, by trading more pairs you diversify the risk and you can hedge different pairs. I am not talking about some manual trading but about automated experts running 24/7 on dedicated server:)