as a example, I track EUR/USD at current stage, 200SMA-200EMA 1.12 and 1.14 , I checked monthly 5-10-20-50-100-200 SMA, EMA . 5month SMA, trading below 5 EMA. monthly RSI and Daily RSI both are 30 means buying stage. If I compared all that, I can hedge with this idea. (I am tracking without my camarilla strategy). Mid term target for USD/INR is 1.16 upside, it can struggle there sometime If it get stable there it can move above 1.20. about downside, target can be new 52 week low or near that. these are Technicals, another side, USD/JPY, it's over all data indicating, It can fall more only below 119. until it is stable above 122, it will move upward ,(I tracked EUR/JPY also) now idea is after FED rate hike 1 of these currency will outperform. that's guaranteed. so, i already knew my 1 call will fail and another will get successful. If i tried Buy Euro/USD and Sell USD/JPY or vice versa. I can take loss on both or profit on both. here risk factor is 100%. But if i decided to Buy EUR/USD and Buy USD/JPY my 1 call will get successful. or If I decided to sell Both my still my 1 call will get successful. point is where to put sl. ? below 1.07 EUR/USD is bearish and above 1.12 bullish, USD/JPY bearish only below 119, so next point of risk, How much to invest amount in both currencies ? ratio 50-50 because both currencies have strength to outperform. Decide sl. , Hold positions if 1 sl. triggered, that position will get closed with less loss. but another will give profit. If anybody have Question, why sl. of both will not get triggered ? answer is Track EUR/JPY it's 135.81 now. not near 52 week low, Not near 52 week High. try this pair trading.
