Here is a list of pairs I'm watching that are on my "approved to trade" list. I watch new pairs all the time, but I only trade those that have passed my requirements in something I call the "lookback test" -- it is a visual review of the past 6-or-so months studying the patterns I watch. If the pair performs well during this recent market activity, I add it officially to my watchlist. I currently only watch pairs with an average spread of 5 or less.
To identify pairs that I consider tradeable, I look for patterns that work 50% of the time or better. During the lookback test, I record each pattern entry as a win, loss or 1:1 breakeven. All pairs on my list have achieved 2:1 or better expectancy. Some perform exceptionally well and others barely squeak out the 50%. But either way, I feel confident to take every trade signal on a pair when conditions are RIPE for opportunities.
Normally I'm only adding pairs to the RIPE list once per day at the New York close. But a dramatic change of events has occurred since the close on Friday, and as such many pairs have already moved far beyond typical. So for now I'm officially watching these pairs and will make an on-the-fly assessment as to whether or not they are ripe if a pattern should form throughout the day. At 5pm, I'll do my regular review and create a "ripe list" for the upcoming 24 hours.
Aussie/Yen short
Euro/Swissy short
Euro/Dollar short
Pound/Yen short
Dollar/Swissy long
NewZealand/Dollar long
The following pairs also showed promise, but they need to be formally tested before I would commit any risk with them:
Aussie/Dollar short
Swissy/Yen short
Euro/Yen short
Pound/Dollar short
Dollar/Loonie long
Lastly, here is a correlation check I've done. Basically it works like this: once I get into the first cherrypick trade, for any subsequent trades I'll check this chart and if the combination is circled, I'll pass on that trade. The goal is to avoid pairs that are too highly correlated, because that could double risk or cancel opportunity on existing trades.
