Quote from Maxprofit$:
Here an updated version of my spread sheet. I hope clearer.
The values to play with are the zone in Gray. Nothing else.
Quarter1 pairs are highest paying. Quarter2 are exotic pairs, followed but other "nod so bad" pairs. And finally hedging pair to use solely to reduce exposure (and ROI).
I have a column of basic portefolio (where i use 20% of my capital). These are to stay for the long term (but still offsetting losses with gains when possible). You input the position size you want in % per portfolio, then the number of trades you open for each pairs.
The other column is where i input the other 60%-80% of my capital. You use the % per Trade case if you want to put a different trade size.
The 3 risks are: 1/#pairs in basic portfolio; 1/#pairs in trades; 1/(50-effective leverage); then a sum of the 3. Means nothing, just a tool to compare different strategies.
The exposure thing is all computed according the the size of your different positions. Low or high numbers are insignificant, the goal is to have all exposure relatively equals (or not if you want to play for some FX gains).
Think that's it. Hope it helps.
