Hello

I have start trading Forex from more than 5 year, initially I was trading any pairs available on platform, but I found that lowering the traded pair will reduce my potential risk, so from last year my trading limited to the following pairs: EURUSD, GBPUSD, GBPJPY, USDJPY, USDCAD, GOLD.

after that I got a glow about the correlation of currency and how they tending in the same direction, like if EURUSD up trend you can expect a same direction on GOLD, but the problem is that if I went long on EURUSD and took a look at GOLD and got a weakness sign from GOLD then my thinking will be as following I'm longing EURUSD but the GOLD is weak and it maybe went down so longing EURUSD is mistake and I have to close my trade.

After I get into future trading and institutional trading most of professional trader that I have met they informed me they used to trade just 1 or 2 pair to avoid and correlation conflict and to concentrate on small amount of pairs.

Right now I decided to reduce my trading to 2 or 3 pairs but they should be not correlated, how can you help me to solve this problem?

Sorry for pour English, hope you understood me well.

If you're still looking for this information, the sites below may be helpful.

https://www.investopedia.com/trading/using-currency-correlations-advantage/

https://www.cashbackforex.com/school/currency-pair-correlations/

@zuhier Dourgham

Good Idea - bad example :-)
The Correlation between GC (Gold) and most of the Currency-Pairs is just moderate.

A good overview about the correlations between different pairs of Currency (for different Time-Frames) you will find on:

https://www.mataf.net/en/forex/tools/correlation

You will find out, that the overall correlation (better: covariation) between Currency Pairs rise, when the observed timeframes become longer (1 Hour, 1 Day). On shorter timeframes (i.e. 5 Min.) you will find lower (and less stable over time) correlations.