I've made the decision to stop trading exotic currency pairs like the EURTRY, NOKSEK and USDHUF. The spread on exotics gets extremely wide after the NY close, up to half the average daily range. This will reduce my frequency of trades, but I want to avoid getting stopped out by short-term wide spreads as much as possible. Exotics might be tradable on the weekly timeframe where the spread becomes relatively small, or where you're trading with extremely wide stop losses. It was a hard decision as I enjoy shorting the EURTRY and EURZAR (the overnight yield on both these pairs is massive, especially on Wednesdays).
I've also noticed that exotics tend to gap over the weekend pretty badly. It's awesome if it works in your favour... but it can also go against you. Risk management is key.
I've also noticed that exotics tend to gap over the weekend pretty badly. It's awesome if it works in your favour... but it can also go against you. Risk management is key.
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