How to deal with Currency Correlation for Day Traders

Sep 17, 2021 at 14:30
Przeglądane 573
6 Replies
Uczestnik z Oct 19, 2020   3 postów
Sep 17, 2021 at 14:30
What do you think is the best way to deal with currency correlation as a Day Trader due to correlations between pairs changing so much. No one wants to unknowingly double their risk on two or three pairs that's correlated and ends up all hitting your stops because of correlation. Would you prefer to always check the currency correlation table every time before you add a second or third Intra-Day trade or is that too much to do?
Playing great defense over great offence.
Uczestnik z Jul 19, 2020   788 postów
Sep 19, 2021 at 00:50
I think the correlation is a myth. Each currency moves at its own pace so no correlation is required.
Uczestnik z Oct 16, 2020   137 postów
Sep 21, 2021 at 11:33
Currency correlation is definitely a thing. Some currency pairs are related in value and move together.
Uczestnik z Jul 23, 2020   759 postów
Nov 11, 2021 at 13:05
Forex traders will use currency correlations to either hedge their trades, increase their risk or use it for creating value.
Uczestnik z Jul 23, 2020   869 postów
Nov 11, 2021 at 15:01
When actually placing a trade, consider whether the markets are currently correlated, whether one market leads another, and whether the price is diverging.
Uczestnik z Jul 23, 2020   869 postów
Nov 11, 2021 at 15:02
When actually placing a trade, consider whether the markets are currently correlated, whether one market leads another, and whether the price is diverging.
Uczestnik z Oct 19, 2020   3 postów
Nov 12, 2021 at 06:48
LyudmilLukanov posted:
When actually placing a trade, consider whether the markets are currently correlated, whether one market leads another, and whether the price is diverging.
I fully agree.
Playing great defense over great offence.
You must be connected to Myfxbook in order to leave a comment
*Komercyjne wykorzystanie i spam są nieprawidłowe i mogą spowodować zamknięcie konta.
Wskazówka: opublikowanie adresu URL obrazu / YouTube automatycznie wstawi go do twojego postu!
Wskazówka: wpisz znak@, aby automatycznie wypełnić nazwę użytkownika uczestniczącego w tej dyskusji.