I trade a basket of pairs but I am doing it more to capture a broader type of movement to prove out and adapt my strategy...

I've done no work on actually proving out whether this is a good (profitable) idea long term (as I said, at the moment this is purely for research/analysis purposes). I've basically used my own logic to come up with the basket... now I am quite open to admit that my logic is maybe completely flawed and I'm sure somebody will point this out if it is!!

I use all possible combinations of EUR, GBP, USD, JPY, AUD... which gives 10 pairs, my logic was that by using all possible combinations it gives the basket some balance, although maybe I'm wrong...??? Obviously there are times when pairs are fighting each other and kind of hedge/cancel each other out... and EUR & GBP are not ideal as against other pairs they do look to correlate, look at both currencies compared to USD & AUD over the last few weeks. Again I've done no long term analysis of this yet... sorry.

Saying that I have made twice as much on GBP/AUD than I have on EUR/AUD in June. My position size is based on ATR & Stop size so different price ranges shouldn't make that much of a difference.

Pretty much the bulk of my profit in June has come from JPY & AUD pairs with AUD/JPY giving me about 40% of my profit in itself.

I'm working my strategy towards breaking-even/small losses in a sideways market and as much profit in trending markets. So by using a basket my theory would be that days like yesterday I make good money on the two strongly trending currencies (AUD & JPY) against the other currencies. Today when they are both going against my defined trend I am stopped out of all trades involving AUD & JPY but making a little on GBP/USD which should cover my small losses for the day...

I hope all that makes sense, as I really haven't done enough research in to this yet to comment with the back up of facts, only my theory... which I'm sure will change when I get the time to do more analysis on it.

I'd also say it must have a lot to do with the time frame and strategy you are following... so what I am saying might (or might not) work for me but might have different results to others...

I was recommended some people to look up on the subject (by NVP) which I haven't done yet but intend to, so maybe have a look too.

"Steve hopgood , Dreamliner , Hanover and some of the other guys at FF"

Cheers,

CFX