Lets say you trade the NQ, YM, TF, or the ES. You use the exact same indicators and the exact same time frame across each indice. Now the only thing that seperates the four is when the signal occurs and time of entry. In the exact same day each market gives an entry signal. You take all four trades, and trail your stop. Now the question is will you get stopped out at your trail stop? the answer is most likely yes but which one will you get stopped out of.
The NQ, YM get stopped out from the trail stop, and the TF and the ES do not get stopped out and you catch a nice trend which covers the trend that you missed on the NQ and YM.
Scenario 2 is you get stopped out of the NQ and the YM on your trail stop but the TF never gave you a signal. However the ES did give a signal and you caught a trend for the day or week or year.
This is how being diverse as in trading correlated markets can help you. Had you only traded one of the indices your chances of being able to catch a trend has diminished. This can go across the board from indices to bitcoin, etc.
The NQ, YM get stopped out from the trail stop, and the TF and the ES do not get stopped out and you catch a nice trend which covers the trend that you missed on the NQ and YM.
Scenario 2 is you get stopped out of the NQ and the YM on your trail stop but the TF never gave you a signal. However the ES did give a signal and you caught a trend for the day or week or year.
This is how being diverse as in trading correlated markets can help you. Had you only traded one of the indices your chances of being able to catch a trend has diminished. This can go across the board from indices to bitcoin, etc.