Often you hear stuff like 'don't risk more then 1% or 3% per trade'. This is pretty clear, and obviously the perfect value for this would change depending on the trading system (in an extreme case a trading system that would allow for 1 trade per year with 100% chance at profiting would allow you to risk 100% of your balance per trade).
I'm wondering how this is affected when trading multiple pairs. Normally raising volume of "gambles" wouldn't require less risk as long as the system is as successful as it is (or more successful) on the other pairs aswell. However, since this isn't gambling and the market always moves because of sentiment rather then sheer chance, would that mean that going from trading 1 pair to 2 pairs require a halving of balance risked per trade? Or is it only limited by the available margin? (obviously entering trades that would cause you to be leaving positions due to insufficient margin would affect the profitability of whatever system you are using)
I'm wondering how this is affected when trading multiple pairs. Normally raising volume of "gambles" wouldn't require less risk as long as the system is as successful as it is (or more successful) on the other pairs aswell. However, since this isn't gambling and the market always moves because of sentiment rather then sheer chance, would that mean that going from trading 1 pair to 2 pairs require a halving of balance risked per trade? Or is it only limited by the available margin? (obviously entering trades that would cause you to be leaving positions due to insufficient margin would affect the profitability of whatever system you are using)