I have a question regarding Multi Market Validation. I notice in your course, you use up to 9 markets for validation tests, and if it passes more than half, that’s say 5 out of 9 then it passes the validation test of Multi Market Validation.
1. Why do you choose 9 markets instead of other numbers such as 8 or 10. Is it due to your experience or have you tested all the cases (that’s say from 4, 5 to 9 or 10 markets) and found out that 9 markets is good enough for this validation tests?
2. When we choose 9 markets, do we need to consider their correlations with the pair we’re testing or we simply randomly choose any pairs so that the final number is 9?
(I think the way we choose the currency pair in Multi Market Validation test is quite important. Let’s say, we are testing the pair EURUSD, it’s rationalize if we choose the pair that often have good correlations with this pair, such as GBPUSD, AUDUSD, NZDUSD, USDCHF… than the exotic pairs that have loose correlation with EURUSD such as EURCHF, EURGBP). Do you think my idea is reasonable?
Thank you Petko in advance for helping me with this specific question. I hope I have earned two euros for two of my posts so far to use for course discount in the future ^_^.