Home Trading Strategies Which Are The Best Forex Pairs To Trade?

Which Are The Best Forex Pairs To Trade?

Which Are The Best Forex Pairs To Trade?

okay so in today’s lesson we are gonna talk about how to choose the best Forex pairs to trade so if you you know hang around on you know forum books listen to trading gurus they would tell you that you know you should focus on a spread you should focus on the major currency pairs you should focus on the most liquid markets the most liquid currency pairs but I’m here to tell you that you know those shouldn’t really be your consent why is that number one let’s talk about the spread so the spread if you treat you know major currency pairs or the crosses let’s not talk about the exotic pass right major currency pairs or crosses the spread across the board it’s going to be pretty reasonable because the Brooking industry the Forex broker industry is so competitive right the spread has been steadily declining over the years and almost any major currency pairs that you trade all the crosses right now spread really it’s going to be it’s not going to be atrocious it’s gonna be pretty reasonable so the spread shouldn’t really be your main concept because you can be sure I do going with the reputable broker the spread that they offer is gonna be pretty tight this end to start with number two liquidity the forex market is the most liquid markets in the world okay so if you ask me right as long as you’re not a day trader trading a seven or eight figure trading account you don’t have to worry about liquidity if you are trading less than ten loss you don’t have to worry about liquidity because the market is very liquid whatever order that you put into the markets it’s probably not gonna make a difference at all you can imagine you know you take a pill you go to the sea and you scoop up the water and pour the water out into the land is it gonna make much of a difference to the sea no not really it’s only a small pill and it’s the same for liquidity or if you’re gonna treat like one lot one mini lot two lots is not gonna make a difference to the liquidity I mean it’s not gonna make an impact right on the liquidity in the FX markets so now you might be thinking okay right now so I don’t have to concern about the spread I don’t have to worry about liquidity so what should I be concerned with right how do I choose the best Forex pairs to trade and that’s what I’ll get to right now but first right if this is the first time you’re watching this video hit that thumbs up button and subscribe button below this way whenever I publish a new video you’ll always be abated so here the thumbs up button click the subscribe button below have you done it then let’s get on so the thing that I want you to pay attention to right when to decide which is the best Forex pairs to trade is to understand the market behavior that’s right to understand the market behavior you want to know whether the market you’re trading is it a trending market or is it a mean reverting market why is that if you think about this if you are employing let’s say a trending strategy a breakup trading strategy then chances are you want to be trading a market that tends to trend right if you apply a breakout strategy a training strategy to a mean reverting market you realize that you will suffer losses consistently over time because if the market tends to mean river then breakup tends to fail likewise if you are applying a mean reverting strategy a counter trend strategy you do want to be doing it to a trending market because the market tends to train can you see where I’m coming from so now the question is how do I know whether the market is trending over time or does it tend to mean revert over time so now I only share with you this tightening that I’ve learned from Andre Unger okay this is a simple test that will tell you right whether the particular market your trading does it tend to behave in a trending manner or in a mean reverting manner so this is the test what you want to do is now you can do this via back tests I did I use multi cuts for this a particular back testing platform for those of you who are wondering so what you wanna do is you wanna buy the breakout of previously a high right you just for example in this case I used one lot by the breakout of the previously high and you hold that one lock that long position until the price hits the previous day low and when he hits the previous day low you exit the longtree and you go shot so in other words you exit the long position reverse your trade and go shot and you hold that shot position till the price breaks above the previous day high then you exit a shot position and you go along and you rinse repeat this process all over again so in essence what you’re doing is you’re simply you know buying breakouts and shorting break now so the purpose of doing this is to find out right what is the end result of this simple test because if you think about this if a market has a trending behavior then the equity curve right should slope up over time because every time you buy breakup right you hold the trade until it hits a previous day load you exit the trade if the market has a trending character a trending behavior you would expect an upward equity curve that’s sloping higher on the other hand if you do this right and you realize that this particular market this currency pairs tend to to have a equity curve that sloping down it’s telling you that you know whenever you buy the highs okay you tend to lose money anywhere whenever you shot the breakdown to shut the previous deal or you tend to lose money so this tells you that this market has a mean reverting characteristic so let me just share with you the findings that I had right so here a couple of markets that trend well dollar yen and dollar against the Chinese yen so let me prove it to you with data I don’t just want to know say let me just share the data with you okay so this is for dollar yen you can see over here this all the stats alright although all the trades long trades short trades whatever but the key thing that I want to point out is the equity curve over here you see right from 2000 2008 onwards this dollar yen pair it has been sloping up higher the equity curve so it’s telling that dollar yen is a trending market whenever you buy the breakout of the highs the market plans to go up for a few days before in reverse down lower hit the lows right and it tends to continue down lower so this dollar yen is a trending market equity curve is hitting up higher over time also right dollar against the Chinese view and you can see over here this is another trending market in the currency pairs it’s a this means that you know you want to be trading breakouts you want to be trading a trained continuation traits on the dollar against the Chinese yen so these are a couple of trending markets in the forex markets the Forex pairs what about mean reverting markets so let’s check it out mean reverting markets this is our Aussie Canadian you can see this one again we applied that same system right buying the break of the highs and shorting the breakdown of the lows in this market equity curve is going down steadily over time so what this tells you is that for Aussie Canadian whenever you buy the breakout of the highs or you shot the breakdown of the lows this simple pass this simple strategy right tends to lose money over time so this tells you that Aussie Canaan is not a trending pair it doesn’t rain well in fact it’s a mean reverting market and this is the data the data don’t lie in fact and see all the list of traits that have been executed over time right so again this is it’s all backed by data it’s not Rainer say but the data says so okay so this is Aussie Canadian another one is Ozzie New Zealand similar phenomenon or I can see that the equity curve is also heading down steadily over time telling you that Aussie New Zealand is another mean reverting currency pair so now what do you do with this information okay Rina I know a dollar yen dollar Chinese yen is training market or the Canadian oz in New Zealand is a mean reverting currency pair so why right so well here here’s here’s what okay so this tells you that you know if you are applying a trending strategy a breakout strategy you want to be focusing on currency pairs that have trending characteristics it would greatly increase right the odds of your trade walking up think about this does it make sense and likewise if you are a counter trend trader a mean reverting trader then it makes sense right to be trading currency pairs that have a mean reversion characteristic to be a mean reversion behavior to it okay so let me just share with you an example let’s say we talk about trending markets right so training markets I mentioned you can treat trend continuation traits or breakout traits so just to share with you a example so let’s talk about dollar against the Chinese you in okay let me just get it out okay here dollar against the Chinese yen so you can see over here right what we’re gonna do over here is that we’re just gonna apply simple technical analysis right overlay with the statistical data we have learned right from this particular currency pair dollar gives the Chinese yet it is a trending market so what you can see that is that over here we know that just basic technical analysis right this market is in a range okay in fact we have a declining stage lower then the market went into this range over here so what’s interesting is we notice this market is showing signs of bottoming out over here now you have this build-up form over here so if you see this pattern right is a technical analysis standpoint this is actually quite bullish because it shows you sign of strain right are willing to buy at this higher prices and resistance so this is a sign of strength and what we can do is just simply simply to buy the break up of the highs so if the price for example it breaks above this highs all right or it breaks and close above the highs we can go long okay and on top of it or if you recall rain I share the statistical data I think it’s a trending market so this should give you confidence that you know you wanna be buying break ups on this particular market since it has a valid technical trading setup plus statistically it tends to trend over time so the second quick thing is now how do i you know drill my stop-loss couple of ways you can do it number one you can just use a simple tool like me 20-period moving average right and just drill your stop-loss right until the price breaks and close below this 20ma over here so that’s one way you can go about drilling your stop-loss alternatively right you can also trill your stop-loss right on the weekly timeframe okay so you would enter somewhere here I believe or somewhere here okay so you can exit your trade only when the price breaks and closed below the previous week high which is would be this candle over here I believe your entry would be somewhere about here so there’s a couple of ways you can trillium stop-loss and again it’s nothing rocket signs over here no more we’re just taking a statistical data that shows us that dollar against the Chinese yen tends to train over time and we overlay it with a simple technical analysis like you know buying breakups before build up a resistance or maybe buying a pool back towards the tween image just very simple technical analysis tools so technical analysis combined with statistical data boom powerful stuff okay another example you can see over here right okay dollar against the Chinese ume notice that this market now again goes into a range okay then it breaks down retest previous support now I guess resistance then we have this uh this so-called bearish engulfing pattern over here a reversal at this market structure so you zoom in a little bit alright so you notice again we call dollar against the Chinese yen is a trending pair whenever the pie price breaks out of the high so it breaks down with a lower right in the long run right it shows a statistical edge the market tends to move right now as it as a trend it tends to move a little bit more then I mean it tends to train over time right it’s off trying to see so get this over here right a typical technical analysis setup righteous a reversal candlestick pattern at previous support and resistance we can see that over here previous previous support now I guess resistance then you have this bearish engulfing pattern so you can go shot on the breakdown of this low stop-loss and okay me just above this highs somewhere about here and they can write the move down lower right maybe you have a fixed target at this swing low or maybe you can drill it right again your stop-loss using the tween EMA or the previous week high or previous daily candle high it’s up to you but the key thing I’m trying to share with you over here is that when you’re trading markets that tends to train you want to be trading setups right there are in the direction of the breakout trading setups right which are trained continuation setups okay that’s what I’m trying to bring across so that’s a couple of examples over here right for trending markets now you might be thinking okay Reina so what about the mean reversion markets how can I trade it well actually cover all this and more in pro trader sage and let me just you know bring you in for a sneak peek all right so you know what to expect so this is the pro trader session members dashboard right Pro traders H is a Premium Membership right to give you the skills and techniques right to beat the markets okay so you can see that in this Pro traders – – pot there is one module over here called mean reversion trading strategy so this is a mini cost right there dives deep into mean reversion trading first lesson right we will talk about what is mean reversion trading in the second lesson we talked about which are the best markets right to trade mean reversion because as you’ve learned right not all markets are created equal some markets tend to trend better some markets tend to mean revert better and in this lesson I’ll break down which are the best markets for mean reversion trading and of course all right it’s based on you know statistics and data the third lesson we talked about the mean reversion trading strategy itself we talked about the set up the entries the exits and much more and then we also talked about important considerations that you have to think about before you put on the trade and finally the fifth lesson is about you know identifying the high probability and low probability trading setup because you can have two trading setups which are very similar but one of them is a higher probability trait and one of them is a lower probability tree how do you tell right that’s what we cover in this fifth lesson and when you and when you’re a pro traders each member right we also have something called the back test research lab right in this lab over here you can access to uh you can access to a new piece of research each man right and each piece of research is based on again statistics and data back testing stuff that I’ve worked with my developer so you know what works and what don’t in the financial markets then we also have a weekly trade alerts okay weekly trade alice is each week right I publish my own market analysis of the markets you can see that over here okay all the different analysis each and every week I share it over here then we also have a premium trading strategy guide a ple pdf version so you can see that a ton of a PDF you can download right strategy guides that you can download for your own reference and keeping you get access to exclusive training webinars right that you can’t find elsewhere you get my training checklist you get access to this proprietary trading indicators volt so this is indicators for mt4 users so you can see that you know I know the MACD is pretty much an issue with it right so this may be one solve the make the problem on for mt4 users get dungeon channels to cast a news reporter price level pivot point and much more okay so all this add more right in Pro traders age and there’s a 7-day free trial by the way this means you can join pro traders h for seven days for free and buy the seven day if you don’t enjoy a membership you think it’s not what you’re looking for just email us let us know anyone cancel your membership so there’s a seven day free trial there is no risk to you at all okay so I’ll put the link below to join pro traders h right so just click on it and we will get you started so with that said I’ll see you on the inside


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