Correlation trading strategies could be a high probability method. What are the pros and cons about this method? - Forex Questions and Answers - FXAnswer

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Correlation trading strategies could be a high probability method. What are the pros and cons about this method?

ei: Use EURUSD to trade GBPUSD. They are highly positive correlated pair, or EURUSD to trade USDCHF for negative correlation.

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- Warren
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1 year ago

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0 Votes Correlation trading strategies could be a high probability method because they move in tandom like the EUR/USD and GBP/USD you but one need to know which currency is the moving factor in the two pairs.In the case of EUR/USD and USD/CHF these two currencies have negative correlation to each other we know that traders trade currency not the pair so one should know the fundamental reason behind the moving currency at any particular time. by Harold 1 year ago by Harold 1 year ago
0 Votes The pro is we can make use of the correlation to make profit, the con is the correlation is complicated and dynamic, not suitable for beginner. by Kingpin 1 year ago by Kingpin 1 year ago

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Correlation trading strategies could be a high probability method because they move in tandom like the EUR/USD and GBP/USD you but one need to know which currency is the moving factor in the two pairs.In the case of EUR/USD and USD/CHF these two currencies have negative correlation to each other we know that traders trade currency not the pair so one should know the fundamental reason behind the moving currency at any particular time.