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Originally Posted by trevman
why, US/JAP, GBP/JPY has better returns, but why does it have better returns than NZD/JPY since the NZD has a higher interest rate.
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US/JAP
cause the spread size is 3 pips on normal trading day .... so if you want to get out of a trade to lock profit and later get in a trade again its will be easier
the other pairs have a very high spread, also GBP/JAP moves more than 120-200 pips per day so its the most dangerours pair to trade.
But yes you have a point and its valid, you can apply this rule at any pair after you draw the trend lines and study the pairs and GBP/JAP has almost the same curves and trend lines like US/JAP with more interest rates
Fainally I did the calculatoin after I draw the trend lines on the US/JAP and not any other pair, you can do the same at any other pair, as long as you get the idea and you know what you are doing.