Multi-currency portfolio as a risk diversification

June 27 article “Is 15-minute charts optimal when price movement is narrow?”

June 30 article “EURUSD 5-minute reversal scenario and SL reference signals”

Here are the forward results for July.

Data is with default settings using only the 1-hour chart, without a trend filter.

USDJPY +72.5 pips (5 wins, 2 losses)

AUDJPY +53.7 pips (4 wins, 0 losses)

GBPJPY +38.6 pips (2 wins, 2 losses)

GBPUSD +14.4 pips (2 wins, 2 losses)

AUDUSD +5.6 pips (2 wins, 1 loss)

EURJPY +3.8 pips (4 wins, 1 loss)

EURUSD -66.0 pips (4 wins, 6 losses)

Total +122.6 pips (23 wins, 14 losses) win rate 62%



It is only a progress update, but during this period EURUSD underperformed.


Excluding EURUSD, for the six currencies, +188.6 pips (19 wins, 8 losses) win rate 70%.



Note: The above data is only the mid-July progress of this system, so other systems or other periods may yield completely different results.


Although hindsight is not good, it could be said that currencies with high event/news characteristics, like EURUSD, tend to move irregularly.

So why is EURUSD a currency with high event/news characteristics? The EU comprises many member countries (28, including Germany, France, Italy), so more participants lead to more sudden events and news, and even an economic event or news from one EU member country can influence EUR more than expected.

USD also has events and news, such as employment statistics, but since USD is the world’s major currency, most events are anticipated and priced in, and since it is well-researched, its sudden moves may be lower than EUR’s.


Of course, there are times when EURUSD performs well and in systems it does well.


In any case, the差 (differences) can be so large depending on the period and currencies.


From this perspective, a multi-currency portfolio that operates across multiple currencies is an important viewpoint for diversifying risk beyond a single currency.



By the way, purchasers have provided comments including such perspectives.

Excerpts are provided.

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“This time I purchased MT4 Reversal Scenario RSI Bands.”

I mainly use it on 1-minute and 5-minute charts, but

so far the indicator functions properly. Since I have just started using it,

I will conduct thorough testing and report again.

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For purchasers, the logic is 공개 (public), so during free upgrades it will be easier to communicate with them, which is a big advantage for purchasers.


In the future, we will apply the above results to other existing EAs, indicators, etc.