Currency Ring is interesting forex trading strategy. This is a trading method which has been around for some time now. Many people have reported good success rate with it. In this forex method, we are going to trade 3 pair at the same time, the 3 pairs together form what we call a ‘Currency Ring’. The main property of a Currency Ring is that, altogether, they share the same number of currencies. It is advised that you trade only 1 currency ring per account as this will decrease undue drawdown that your balance can suffer with these type of strategies.It is also better in the sense that you will be able to study the behaviour of each ring separately and may better assess their performance.
Ebook- currency-ring-forex
- Thread starter autoforex
- Start date
- Watchers 0
Quote from the book:
It's completely wrong. If we go long on GBP/CHF and GBP/JPY, we aren't buying CHF/JPY. We are actually short on both CHF and JPY. If we then buy CHF/JPY we won't stabilize anything, we'll just reduce our short on CHF and add even more short on JPY. Even our stance on the CHF won't be stabilized, as there's different amount of CHF involved in buying 1 lot of GBP/CHF and buying 1 lot of CHF/JPY.
Be very careful using this "strategy"!
It's completely wrong. If we go long on GBP/CHF and GBP/JPY, we aren't buying CHF/JPY. We are actually short on both CHF and JPY. If we then buy CHF/JPY we won't stabilize anything, we'll just reduce our short on CHF and add even more short on JPY. Even our stance on the CHF won't be stabilized, as there's different amount of CHF involved in buying 1 lot of GBP/CHF and buying 1 lot of CHF/JPY.
Be very careful using this "strategy"!