“A set of things working together as parts of a mechanism or an interconnecting network; a complex whole”

In trading we create something similar. Our watchlist = Our system

The beauty of the system is that it works in conjunction with each other. There is logic and reasoning behind every pair that is labeled. To answer your question quickly. Here is my system.

It's built up in three different sections which co-exist simultaneously;

• -  Primary FX pairs.

• -  Secondary FX pairs.

• -  Indexes.

System Explanation

Primary pairs entail the following;

These pairs are usually oriented with the dollar, USD $, the reason for that is due to volume. One of the largest, if not the largest (disregarding CNY) economies in the world.

So, this makes it more attractive to trade primary pairs within your system as you are less likely to be trading in illiquid conditions.

Let’s break that down a little bit more, yes, every pair will have illiquid conditions, which are a good thing. BUT what is meant here, coming from that retail standpoint, is when you trade through CFD's, you are victim of spread (bid and ask).

The more liquid the pair is, so more daily turnover in terms of transactions, the lower the spread is. IE -> the lower your chances are you get flawed by things which are sometimes out of your control.

Secondary pairs entail the following;

These are pairs which are made up of byproducts of your primary pairs. They fit within the regime of your primary movers and allow you to see how each currency moves independently

.Okay, so secondary pairs help you understand which of your primary pairs is leading. They also help you to trade off-beat. A concept we will get into later.

Secondary pairs tend to be a little bit less liquid compared to your primary pairs due to the less significant economies involved.

Indexes;

These build the backbone of your narrative. As they showcase your primary currency pegged against a basket of others.

So, with indexes you have two main ones for your system, a currency basket, and usually a tech-based portfolio of your economy. Both of these will help you understand the state in which your primary currency is in.

All these three act like puzzle pieces, when put together, you get the complete image which is?

Your narrative.