When you trade forex pairs, there are plenty of choices to pick from. Smart traders don’t find themselves confounded when one pair enters a lull or period of choppy trade because they know that while one pair is resting, another pair is probably experiencing some volatility. That’s one reason why forex trading is superior to trading stocks.

When the stock market settles into periods of benign trade, nearly all the stocks in the market succumb to this condition. You’d have to search far and wide to find a stock that was actually moving. This scenario plays out because industry groups are highly correlated in equities market and there simply isn’t as much money changing hands in stock markets as there is in forex.

Forex is a market that thrives on liquidity and it’s the most liquid financial market in the world. And this liquidity is one reason why some forex robots have shown themselves to be very useful tools over time. As we said, there’s always some volatility or a strong trend in one corner of the forex market and this really works in your forex robot’s favor if it trades multiple pairs.

There are forex robots that only trade one forex and other forex robots trade multiple and this debate is something that many forex robot users talk about constantly. While we have found no evidence to suggest that a single-pair forex robot outperforms a multi-pair competitor, we tend to lean in favor of multi-pair forex robots on the basis of versatility. With that in mind, let’s look at what pairs are the best ones for your forex robot to trade.

The Major Pairs

Just in case you’re new to forex trading, we’ll review the eight major currency pairs. They are the Euro/US dollar (EUR/USD), the dollar/Japanese yen (USD/JPY), the British pound/dollar (GBP/USD), the dollar/Swiss franc (USD/CHF) the euro/yen (EUR/JPY), the dollar/Canadian dollar (USD/CAD), the Australian dollar/dollar (AUD/USD) and the New Zealand dollar/dollar (NZD/USD).

As we said, these are the major pairs and they account for the bulk of the daily activity in the forex market and these are the pairs your should focus on regardless of whether or not you’re using a forex robot.

There are certain pairs that forex robots tend to focus. If you have a single-pair forex robot, chances are it only trades the EUR/USD. Multi-pair robots will trade that pair along with the USD/JPY, GBP/USD. USD/CHF and USD/CAD, but even that is kind of limiting.

Don’t Miss The Big Moves And Don’t Get Stuck

It’s a great idea to alter your forex robot settings to focus on volatile pairs like EUR/USD, GBP/USD, USD/CAD, AUD/USD and NZD/USD. The latter two don’t get a lot of attention among forex robots and that’s a shame, so be sure to take the time to alter your forex robot’s settings to avail yourself of the best opportunities. So in short, make sure your forex robot is focusing on the most volatile of the major pairs and don’t take risks with illiquid exotic pairs.

Author Bio: Brenda Maison is a retired Canadian Economist. My main activity since Winter 2006 is trading Forex. I’ve been trading currencies online with the help of EA’s (BTW, the best source for EAs is Forex Robots ) and I currently manage trading accounts at two Forex brokers in the US and in UK respectively.

Category: Finances
Keywords: Forex Robots, Day Trading, Forex, Forex Brokers, Finacial Advisors, Expert Advisors