Technical analysis

Best currency pair. How to choose them?

Written by forex

Hello, dear friends! Today we talk about the best currency pairs and how many pairs to use in trading. The majority of traders often ask what are the best currency pairs, and how many underlying assets to use and how it affects the quality of trading. In addition, many is enough I wonder what the underlying asset is used most often!

In my subjective opinion, the number of underlying assets should not play a key role in the way of Your trading. Much greater priority has a competent risk management and control their own emotions. It’s very simple, the more basic assets used in trade, the greater becomes the load on Your capital.

In this case, You will need to fully adjust the money management so as to follow will have multiple transactions. In addition, if on average You are risking 5% of the Deposit on each transaction, and when using 10-20 currency pairs use the same risk is impossible, as the opening 5 deals with the search risk of your stroke to forfeit 25% of Deposit if the transaction will not play.

Of course, hardly anyone uses such a huge number of underlying assets simultaneously, so as to keep track of all of them simply physically it is difficult. But the point here is simple, respect the rules of your system and a proper money management in this case has a higher priority. Why are all furnished in this way? – we will examine later.

How many pairs to use?

As practice shows, the vast majority of professional traders use in their trade no more than 1-2 of the underlying assets. In principle, this aspect is easy enough to explain, because to keep track of multiple pairs would be extremely difficult! Among beginners wanders the myth that the use of a large number of assets will help to earn many times more. Frankly, it is not even a myth, rather it is a serious mistake on the part of the speculator.

Your earnings are not associated with any number of assets, and not even associated with their volatility. Overall, Your success depends on two important factors – the provision of quality and competent management of own capital.

If judged theoretically, it is possible to earn 100% of the capital, trading in a narrow consolidation, and not to be able to earn even a few points during the development of a clear trend.

In that case, if You do not understand the reason for this is, it is likely that aspects of capital management and compliance with risk You have problems. And it’s a very good reason! After all, competent money management can help to systematically raise capital and take risks unnecessarily. For example, You have decided on the underlying asset you want to use, then estimated the mathematical relationship of the system and selected your allowable risk per trade.

In the future, Your earnings will be directly conditional on the quality of Your system, and not the number of simultaneously used assets. Imagine that You can afford to risk 5% of the Deposit on the deal. Thus, if you are using 5 pairs, then it will have to split up the risk so as not to exceed the maximum mark.


Accordingly, and whether there is some common sense in the use of a large number of assets, if earnings are positive, the parties are not affected! But even despite this, it is sometimes difficult to distinguish really the best currency pair that had a clear advantage.

Choose a couple of

In principle, no such thing as the best currency pair does not exist in principle! By and large, a meaningful difference between currency pairs is not to look. Basically, You can earn 50% of the Deposit on the movement of 20-30 points, and earn no interest on large movements of 200-300 pips. In this case, the priority is reduced much more in the direction of risk to reward.

For example, if Your risk per trade was 5%, stop is 5 pips and profit is 50, then the percentage of the transaction will add to Your Deposit by 50%, and the risk would be unchanged. But, if Your stop was 100 points, the performance of this order, will be much lower.

In addition, if the stop value exceeds the profit is not good from such a transaction should be abandoned. Actually, we went back to the original – Your income depends on the quality of trade, but not the number of underlying assets.

In any case, the final choice of an asset depends solely on yourself, in this matter we must be guided by personal preference. A tool well suited for positional trading, the other is good for scalping. What is a couple to choose is depends on You and Your trading system. Pick something that fits and YOU like it!


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