Thanks etcallhome, so what you are saying is that the central bank of one of those currencies could just peg theirs one day which would make it gap up/down w/o warning? Wouldn't the major ones (aud,cad,usd,eur,nzd,jpy,nzd )not as likely to do that vs. the smaller ones (nok,dkk). I guess this is just one of the risks that have to be embraced and use position sizing and diversification as defense.
Your comment about NZD being untradeable is interesting to me. I bought fx data from 2009 till 2015 and did backtests on 28 fx pairs.- working on a fade system that has a 62% win rate on a 1/1.2 RR ratio which is what I will trade live. The curious thing is that this system works on all the pairs EXCEPT for audusd, eurusd and gbpusd. The system is "on" from 7am EST to 8pm-- messed around with different start /stop dates and suprisingly the results were consistent.( ie It makes $ except for the 3 pairs). I wonder if there is something structural in the market that creates such phenomenon (ex.bank doing their business outside these hours? ) Since my system fades trends, maybe those 3 pairs exhibit the strongest trends in that timeperiod? That might be my next research.