Just a quick question regarding the maximum amount of pairs open at any one time.
So at the minute I have 5 different pairs open, and I am trying to follow the LogikFX guidelines of having a maximum of 5 pairs open at any one time.
My question is, if I want to open a trade on a new pair, how do I decide which pair to close, if any?
I have certain pairs doing very well and some pairs not as well but appear to be in a good position ready to move in the direction I want them to, with the majority of the Fundamental Analysis still in favour of my trades with the exception of one or two, in which the COTA is less favourable than others. So I could do with some advice!
I have one trade which is now running risk free, meaning I only have 4 pairs now that have potential become a loss. Could this be the only exception to add another pair into the portfolio?
Let me know your thoughts, thanks!
Yeah that's spot on Marcus thanks for that, just the answer I was looking for!
The number of positions is generally personal preference - I'd say just make sure when you're taking on more than 5 positions there's not too much correlation between your positions.
My rule of thumb, ALWAYS replace the worst performer after giving at least a month to work, and till then leave all your ideas on the watchlist.
Just think your portfolio should be full of the trades you think has the best opportunity... So if the conditions change in the market, and new opportunities present themselves, find a way to fit them into your active trades. (You can even just reduce position sizes on existing trades to slot it in)
Hope that helps ✌🏼