Best Forex Trading Pairs – Most Profitable & Lowest Drawdown
Many questions about choosing a best forex trading pair, whether this currency pair to trade to make more profit with less drawdowns? here is a simple explaination about which currency pair you should choose to trade.
Firstly that choosing a currency pair is all about your trading strategy whether how’s your trading strategy works or maybe you have any of the EA that how it works? Depending on your strategy or forex ea, the currency pair can be choosen. But in this post we will explain some details which will make you able to take better decision whether which pair you should choose.
Before you go further, note that this explaination is more about our forex EAs hedge scalper ea, forex correlation ea and never losing EA to help you to choose the suitable forex trading pairs for your forex EA.
Which pair to trade?
Depending on how many pairs you are going to trade with? if you are going to trade on just a single pair, you should choose EURUSD. but why EURUSD? its not because this pair can make you more money or something like it. Its just because the EURUSD is most popular trading pair and there is always a huge volume on both side of trades such as bullish and bearish. So, if this symbol goes bullish one day, and it was unfavorable for you, the next day or the other day there is higher possibility that it will be in bearish trend.
Is EURUSD best pair?
As explained above there is nothing special in this currency pair for example, more gain or quick getting richer. But yes it becomes the best pair for those who has less amount in their trading account because we expect trend reversals in trading pair.
Should i trade on mutiple pairs or single pair?
Trading on multiple pairs is one of the best idea, but again depeding on your capital and risk settings. Trading on multiple pairs makes your trading more profitable because when you are losing on currency pair, in same time you might be winning on the other currency pair. So this how it makes your trading more profitable and divide the risk into multiple currency pairs instead of completely dependent on single trading pair.
How many pairs to trade?
Multi pair trading is a good choice and it divide risk but do not use too many pairs that you always have many trades in loss that never comes into profit. So a simple calculation would be as if you have 1k balance, the 2 pairs would be good, but keep adding one pair for each extra 1k balance. such as 5 pairs for 4k balance. but it would be recommended to use maximum 6 to 8 trading pairs. but do not use more than 8 pairs as it will add only a burden to trading account, but won’t help to make more profit. The best choice would be 4 to 6 pairs.
| Account Balance | Recommended Pairs | Notes |
|---|---|---|
| $500 – $1,000 | 1–2 pairs | Low volatility only |
| $2,000 – $3,000 | 3–4 pairs | Mixed currencies |
| $4,000 – $6,000 | 4–6 pairs | Best balance |
| $7,000+ | 5–6 pairs | Avoid overloading |
Best combination of trading pairs.
Its the most important that you should have a proper strategy on how many pairs you should choose and what are those pairs? The simple strategy would be choosing different pairs, example you are going to trade on 5 pairs, there is no need to add all those pairs each pair has USD or EUR or GBP. you need to use those pairs that are completely different to each other and they are not correlated.
Wrong combination example. EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD. In this example each and every set has USD this means if there is strong trend on USD, all your pairs may lose money and result in account wash.
Right combination example. EURUSD, USDCHF, EURAUD, GBPCHF, GBPJPY. In this example you have mixed combination of currencies. If incase USD gets trended, only your two pairs may get effected but the other 3 pairs remain less effected.
Which pair makes more money in forex?
It depends on the strategy whether how it fits to your selected trading pair? if it fits perfectly, the EA can make a good profit but if it doesn’t matches, the EA may makes losses. Example, if you are a scalper and uses strategy that requires minimum spread but you are trading on EURNZD which has higher spread and moves many pairs each hour, then it may not be the suitable trading pair for you. but for EAs that eatrades provides you comes with fully auto adjustment strategy that adjust itself according to trading pair.
Higher Volatility vs Lower Volatility
Volatility depends on market volume, but yes still there are some trading pairs that moves more and some others moves less in pips. So which pair you should choose? higher volatility or lower volatility.
If you have enough money in your trading account and you are trading only on one or two pairs, it would be recommended to use higher volatility pairs but chose less volatility pairs when trading with smaller amount.
Taking the following image as example which has been taken as screenshot of forex hedge scalper EA on myfxbook results page that USDJPY has performed best than any other pair for many months, because it has moved the most than other pairs. You may cross check by yourself on myfxbook link.
Currency Trading Vs Gold Trading Vs Crypto Trading, Which one to trade?
As explained above in Volatility section and EURUSD section that its a good idea for trade on lower volatility and those pairs that reverse most of the times to make good profit. but XAUUSD and BTCUSD or ETHUSD has most higher volatility and they moves one sided a lot before changing their trends.
Its true that you may make more profit on gold trading or crypto trading but you can’t even deny the truth that many people gone bankrupt trading on gold and crypto. So here we would suggest to trade on currency market as all our EAs on eatrades.com supports only forex currency trading but can’t be used on gold or crypto pairs.
Best Forex Pairs for Low Drawdown
The trading pair doesn’t makes itself to low drawdown or higher drawdown, but depends how you use them makes it more profitable and low drdawdown forex pair. Using long term strategy on high volatility pairs and short term strategy on low volatility pairs would makes it low drawdown forex EAs. As our forex EAs uses AI strategies that adopt itself to market movement and trends to make maximum profit on low drawdown.
Manual Vs EA Trading. Which one is best?
Manual trading maybe time consuming and high chances of making mistakes on analysing market and we can analyse maybe one or two trading pairs and after opening trades, the emotions and fear of losses disturbes the whole strategy which then ends up in losses. but similarly when using forex EAs, you must make sure to use a forex EA that has been trusted by community with verfied results. because using a random EA may makes losses. Using forex EA avoids emotions and avail each and every opportunity. furthermore it analyse all market pairs at the same time with accuracy.
A quick answer to short questions
Yes, because it has bigher volume on both bullish and bearish.
Yes, it a good idea to trade multiple pairs, but not too many pairs.
The combination is best when they are not directly correlated
Forex EA trading is more suitable as it avoids emotions and don’t miss any opportunity.
Risk Disclaimer
Forex leveraged trading may lead to higher risk or losses. Past performance of EAs does not guarantee future results. Always use proper risk management.
