lavishdream19 wrote: Fri Oct 31, 2025 10:14 pm It's worth considering that not all pips are equal.
A successful 100 pip trade on GBPAUD would yield a profit of approx £549.89
A successful 100 pip trade on GBP USD would yield a profit of approx £787.82
Both pairs have their advantages, GBPUSD being theoretically safer for new traders who are looking to scalp 10 pips and repeat with less risk or overheads, but GBPUSD is a very uneventful market which in turn causes a lot of false (indicator) signals.boytoy wrote: Fri Oct 31, 2025 10:47 pm Getting 100 pips on GBPUSD is a lot harder to bag than on GBPAUD which is why the most volatile pairs are the best to trade
Negative swaps on both long and short for both pairs which won't change any time soon, but GBPAUD is where your best trades will be because it actually moves and respects price action (and your indicator's signals), even though indicators follow price.
This phenomenon of indicators working better in volatile pairs is due to less algorithmic noise (that occurs in the "Majors"), making volatile markets a better environment for traders, particularly those who rely on specific, technical indicators for trading.
An example of this is:
- When the TDI green crosses red on a GBPUSD M15 chart it's anyone's guess where it'll go
- If TDI green crosses red on a GBPAUD M15 chart, there's way more certainty in it's signal
As you can see above, GBPAUD tends to have smoother, more directional price action (and provide more certainty for indicator's signals) while GBPUSD exhibits tighter, choppier fluctuations illustrating the difference in “algorithmic noise" as mentioned above.
Below is a comparison of volatility based on ATR, illustrating that GBPAUD consistently maintains a greater "daily range" and volatility in comparison to GBPUSD. This characteristic aids indicators in producing clearer signals with a reduced occurrence of "false triggers".
As new traders we tend to gravitate towards the "Majors" as they have lower spreads and it's what we're told to do, but as experience grows, traders should begin exploring the "Minors" and the more volatile markets which will unveil an entirely new realm of possibilities.