jtrade
10-13-2006, 04:25 AM
Good morning, all :)
I'd like to ask how other's consider correlation in their forex positions : for example, this morning I had two 240min setups : short GBPUSD and long USDCHF. From one perspective, this is almost the same trade, as there is a high correlation between these two pairs, so putting on a full position in both could be said to be over-exposure. On the other hand, this is forex, where there is a lot of correlation.
So I'd be interested to hear other's thoughts on this, please, Do you take the best looking or best RR set-up, halve position size... or what !?
J.
I'd like to ask how other's consider correlation in their forex positions : for example, this morning I had two 240min setups : short GBPUSD and long USDCHF. From one perspective, this is almost the same trade, as there is a high correlation between these two pairs, so putting on a full position in both could be said to be over-exposure. On the other hand, this is forex, where there is a lot of correlation.
So I'd be interested to hear other's thoughts on this, please, Do you take the best looking or best RR set-up, halve position size... or what !?
J.