Bad Hedging Correlation Currencies
Topic: Bad Hedging Correlation Currencies
I want to warn about the hedging, because everything you read on the internet is not true.
I do not recommend trading based on correlations, for example: EURUSD vs USDCHF (inverse correlation).
The reason why I suggest discard this system is the historical correlation of currencies can change and modfied and knock down the entire account. The only real hedging is when this happens in the same pair, but we must use it, otherwise, only serves to feed the broker.