Many of us use parallel strategies without knbowing we are and others use it as part of a trading plan. So what is a parallel strategy?
This is by far one of the easiest trading strategies to implement and follow. It requires a technical or fundamental set up and at Dynamic Trader we favour technical set ups. The set up has to be on two pairs that tend to move in the same direction. An exaqmple of that is the Euro v Dollar and Pound v Dollar. Both the Euro and Pound are the base currencies against the Dollar and both the Euro and Pound behave in similar fashions.
As Javid teaches this method on his forex mentoring courses, taking a position on the Euro Dollar based on a set up and taking the same position on the Pound Dollar with similar set up is referreed to as a parallel position and so the name Parallel Strategy.
The Parallel Strategy is a basic strategy but we will require good points for entry and stop as per usual and as always must have good money management.
Some suggestions for you to use the Parallel Strategy on are listed below:
- EURUSD and GBPUSD
- AUDNZD and NZDUSD
- USDJPY and USDCHF
- EURJPY and GBPJPY
- AUDJPY and NZDJPY
The above listed pairs and crosses are suggestions for the Parallel Strategy but any two currencies pairs or crosses you find are similar in their behaviour can be used.
You can read daily forex analysis at www.fxcps.com
Enjoy the weekend and also the start of the Premier League football season.
Below are today's forex daily pivots created by Dynamic Trader Toolkit.
FX Analyst
Anne Chapman
