Types of currency pairs
🔸 Euro vs US Dollar EUR/USD
🔸 US dollar vs Japanese yen USD/JPY
🔸 British Pound vs US dollar GBP/USD
🔸 US dollar vs Swiss franc USD/CHF
🔸 British Pound vs Japanese Yen GBP/JPY
🔸 Euro vs British Pound EUR/GBP
🔸 Euro vs Swiss Franc EUR/CHF
🔸 US dollar vs Poland zloty USD/PLN
🔸 British Pound vs Singapore Dollar GBP/SGD
🔸 Turkish Lira vs Japanese Yen TRY/JPY
The trading platforms that you use have a large number of currency pairs available for trading and some may look unfamiliar and look more like heterogeneous groups of currency symbols, in general, the main currency pairs have higher trading volumes and liquidity compared to the unpopular pairs and depending on your nature as a trader you may be looking for pairs If your strategy involves trying to catch major trends then you will be looking for currency pairs that have clear paths most of the time.
If you are good at taking profits in the markets, this feature may not be a necessary condition for you, the only thing that you should stay away from in all cases, regardless of the preferred trading method is the turbulent markets, which are usually accompanied by a large number of false signals
Each currency pair has a unique personality and changes over time, meaning that the currency pair that made you profits in one month or years may carry you losses in the next month, and also the pair that achieves good results on one of the time frames may not achieve the same Performance over another tire and even actual results change over time.
Start working by observing a variety of currency pairs and try to get acquainted with their unique characteristics at the moment and you can also look at historical data for them to know the nature of the pair’s behavior in the past, after this step you can start to backtest the past performance of currencies that look promising and valid for inclusion in your system Private trading, but it must be understood that your strategy can achieve good results on one pair and fail on others and that these relationships may completely change over time.
Some forex traders prefer to stick to one or several currency pairs all the time to keep things simple, while others prefer to trade a large number of pairs depending on the prevailing market conditions and the suitability of these pairs to the opportunities available, the trade-off between these two approaches depends on your personal style and your comfort with dealing with pairs Certain, and the decision in this case is determined by the suitability of the chosen currency pairs to your trading strategy.
The back-test provides a good starting point for choosing currency pairs that can be tested on a demo account, noting that the changing nature of the market requires going back to past performance tests now or in the future, and you may also need to find a way to include these changes in your real-time trading plan while making Tests on demo account.
In either case, you will have to achieve positive results during the beta testing period, and make consistent profits over several consecutive months, regardless of the currency pairs you intend to trade, as a basic stage before moving to real trading on any of them.
In short, the best currency pairs for trading are the currencies that you can profit from, with less chances of loss, and with high liquidity, as well as knowing the best time to trade, and you must know the currency information that you will trade.