Running two strategies: does diversification actually help?
Two uncorrelated strategies smooth the equity curve — in theory. In practice they double the discipline, split the attention and often trade the same underlying moves anyway.
What's your experience?
- the strategies you run together
- how their results correlate in practice
- whether the smoothing was worth the complexity
The correlation guide applies to strategies too, not just pairs.
Background: Currency correlation: why EUR/USD and GBP/USD often move together
Pairs that share a currency or an economic driver tend to move in step. How correlation works, why it changes and how it can quietly double your risk.
Which currency pairs are positively correlated?
EUR/USD and GBP/USD, and AUD/USD and NZD/USD, often move in the same direction, although correlations change over time.
Why does correlation matter for risk management?
Holding highly correlated positions is similar to holding one bigger position. A single move can hit several stops at once and multiply the loss.
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