Forex Portfolio Selection Using Currency Strength Index (CSI)

9月16日

Hello Traders,

Today, I’ll share my portfolio selection approach in forex trading. This method helps identify the best forex pairs to trade based on their relative strength.

The simplest and most effective strategy is to use the Currency Strength Index (CSI), combining the H4, Daily (D1), and Weekly (W1) cumulative strength. By analyzing this data, we can identify the strongest and weakest currencies at any given time.

Once we have this information, the next step is to pair the strongest currencies with the weakest. Here are today’s portfolio selections:

BUY Pairs: GBPUSD, GBPCAD, GBPNZD
SELL Pairs: USDJPY, CADJPY, NZDJPY, USDCHF, CADCHF, NZDCHF

The key benefits of this portfolio selection process are:

A focused view on the most profitable currency pairs
An objective approach to trading decisions
Clear direction on which way to trade (buy or sell)

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Happy trading!