Filter opportunities if multiple setups are presenting entries

15 ביולי 2021

Risk Management: How to filter trading opportunities if multiple setups of the same currency pairs are presenting entries.

Hello everyone:

Today let’s take a look at how to filter trades if multiple opportunities shape up on the same currency pairs.

It's in our best interest to understand risk management. If there are trade setups shaping up for the JPY pairs for example, it's a good practice to choose the best ones to enter rather than most of them.
When the JPY gets strength or weakness, most of the JPY pairs will move together impulsively, so it's susaintable to filter out all the potential opportunities, and choose the best 1-2 pairs.

Taking multiple positions on different pairs of the same currency may potentially put your trading account at a greater risk.
Sure, on short term samples and examples, traders may find taking more positions can earn extra profits, but long term sustainability wise, it's not ideal to open up so many positions of the same currency.
When traders simultaneously take multiple losses, especially due to correlations, this usually “tilts” the traders, and all sorts of trading psychology effects happen.
They may go on to revenge trade, over trade and over leveraged to “win” back the losses they just took. Best to avoid such negative emotions.



When I am filtering out potential opportunities, few key areas I will focus on when I choose between multiple pairs:

Multi-Time Frame Analysis: Where is the price currently at, and is it in the beginning of the impulse phase on the HTF, or is it closer to the end ?

Risk:Reward: 3:1 RR or higher. Can I comfortably enter with proper Risk:Reward ? or is the price already approaching a previous swing lows/highs ? Which pairs may yield the best reward potentially ?

Price Action Development: Are we getting the confirmation price action structures/patterns on the lower time frames for entries ? Is there a better, more clear price development between the currency pairs ?


Compare the currency pairs with each other, and identify the best 1-2 pairs that fit all the above criteria. Then simply look to set your stop entry orders when applicable.

To wrap it up, understand you can always enter or scale in more positions, as the price continues to develop and in your bias favor. As long as our original positions’ SL are at BE or in profits.
This way you will never lose money from the original account, while potentially maximizing your profits.


Any questions, comments, or feedback welcome to let me know.


Below I will list out some of the other educational videos that tie in closely to what we talk about today:

Risk Management 101

Risk Management: 3 different entries on how to enter the impulsive phrase of price action

Risk Management: How to Enter and set SL and TP for an impulse move in the market

Multi-time frame analysis

Identify a correction in price action analysis

Continuation and Reversal Correction

Thank you :)