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The Worst Offenders: Pairs for Trading

By Tim Shea | September 14, 2007

I’ve been doing some data analysis for FXCM mini accounts over the past year, and have broken down client profitability by currency pair. 

The very best pair in terms of client profitability was the AUD/CHF.  Unfortunately, it is traded by only a few clients. 

The top 5 pairs (of those with significant volume) with the best results for clients are: 

1. GBP/AUD
2. EUR/USD
3. EUR/CHF
4. EUR/JPY
5. EUR/GBP

So, what do they have in common?  4 out of 5 pairs are Euro pairs.  Number 6 is USD/CHF, which is often the mirror image of the EUR/USD.  With the exception of the GBP/AUD, these pairs are low-volatility and low-spread pairs.   

It appears that range trading tends to be more consistent than other approaches.  All of these pairs, with the exception of EUR/JPY, spent most of the survey time range-bound.  They all feature strong support and resistance lines, giving range bound traders excellent and consistent opportunities over the past year.  Strong support and resistance lines also let you trade with tight stops, giving good opportunities to use good money management techniques. 

Now, the 5 biggest losers, starting with the worst: 

1. NZD/JPY
2. EUR/CAD
3. AUD/JPY
4. CAD/JPY
5. GBP/JPY

What’s in common here?  The JPY.  JPY pairs tend to have very high volatility, and can be brutal for many accounts.  Most of these currencies are popular carry trade currencies, with often violent sell-offs.  When they drop, they drop a

To compare the extreme losses of the worst pairs, you can compare AUD/CHF to NZD/JPY.  For every dollar of average net profit on AUD/CHF, there were over $6.20 of losses in NZD/JPY. 

Results are based on closed trades on FXCM mini accounts from 6/30/06 to 7/31/07 (13 months); rollover interest is not factored in.

Topics: What's New at FXCM | 6 Comments »

DailyFX Forex Radio - US Dollar Awaits Key Retail Sales Report, Will EUR/USD Turn From Record High?

By DailyFX Radio | September 13, 2007

· US Dollar catches a break after EUR/USD hit record high of 1.3927 this morning

· Will the pair make a significant turn lower on Friday’s US retail sales report ?

· Be sure to view the rest of the week’s event risk on the DailyFX Weekly Calendar

To discuss these or any other FX topics with the DailyFX analysts, check out the Forum

Click Link to Listen to our Evening DailyFX Radio PodCast:

http://media.dailyfx.com/podcasts/FXRadioPM091307.mp3

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DailyFX Forex Radio - US Dollar Hits Record Lows As Oil Surges To Record Highs

By DailyFX Radio | September 12, 2007

· US Dollar plummets to record lows - will Friday’s US data give the greenback a reprieve?

· USD/CHF could gain despite a possibly rate hike by the Swiss National Bank - why?

· Be sure to view the rest of the week’s event risk on the DailyFX Weekly Calendar

To discuss these or any other FX topics with the DailyFX analysts, check out the Forum

Click Link to Listen to our Evening DailyFX Radio PodCast:

http://media.dailyfx.com/podcasts/FXRadioPM091207.mp3

Want to hear our PodCasts daily? Subscribe to them for free on

Topics: DailyFX Radio Podcasts | 2 Comments »

DailyFX Forex Radio - US Dollar Loses On Mounting Fed Cut Expectations - Are They Overdone?

By DailyFX Radio | September 11, 2007

· US Dollar continues to lose as markets bet on a Fed rate cut - will it be by 25 or 50bps?

· British pound gains have slowed, but UK data could send GBPUSD above 2.0400

· Be sure to view the rest of the week’s event risk on the DailyFX Weekly Calendar

To discuss these or any other FX topics with the DailyFX analysts, check out the Forum

Click Link to Listen to our Evening DailyFX Radio PodCast:

http://media.dailyfx.com/podcasts/FXRadioPM091107.mp3

Want to hear our PodCasts daily? Subscribe to them for free on

Topics: DailyFX Radio Podcasts | No Comments »