Different currency pairs seem to behave differently. Do you change your trading strategy depending on the pair, or do you just stick to one strategy for everything?
I scalp btw 4 ticks to 40 ticks or pips, generally trade futures cause I learned patterns well on ES. But chart patterns work on any market. 99% of time I trade countertrend, learned risk is tighter and profits are consistent. But you have to practice much to get consistent.
Adapting your trading strategy to different currency pairs is a smart move! Each pair has unique volatility and patterns, offering diverse opportunities.
My chart template for index, precious metals, currencies, bonds, commodities ... futures are exactly the same. The volume for those volume charts is different. The max loss for those futures is different.
Some exhibit more signs of a trend, like USDJPY, where fundamentals like capital flows and rate differentials explain some persistent trend of JPY strengthening or depreciation. Other major pairs like EURUSD or GBPUSD are more responsive to economic data releases like PMI, unemployment and inflation data which causes more erratic price movements and more short-term profit opportunities
Currency pairs do have unique behaviors, so adapting your strategy can be helpful. Some traders use a core strategy but tweak it based on volatility, liquidity, and market conditions specific to each pair.
Yeah, I change my strategy depending on the pair. For volatile ones like GBP/JPY, I use wider stops and quick targets, while for steady pairs like EUR/USD, I go for longer trends with tighter stops.
Yes, currency pairs can behave differently, so adjusting your strategy is important. For more volatile pairs, you might use shorter time frames and tighter stops, while for stable pairs, longer-term strategies with wider stops may be more effective.
It's hard to conceive that there are 28 different strategies for the 28 main forex pairs - especially if like me you take the reductionist view that there are only two trading approaches - buy because price has been rising, or buy because price has been falling. But I do use different tactics on different pairs - based on volatility. For example AUD/JPY has more than double the historic volatility of AUD/NZD. It would be odd if the same strategy worked equally well for both. In fact no less than 19 pairs have volatility at least 50% higher than AUD/NZD. Also, many pairs are highly correlated so I avoid playing pairs featuring the "junior" currency - so if I'm in AUD I avoid NZD, if I'm in EUR I avoid CHF, if I'm in USD I avoid CAD, if I'm in GBP I avoid EUR.