the problem I forsee is a 9/11 style catastrophe ----> instant margin call. and since this strategy relies on being invested for years to be worthwhile, the chances of such an event are greater.
TRADE FOR SWAP
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Dislikedthe problem I forsee is a 9/11 style catastrophe ----> instant margin call. and since this strategy relies on being invested for years to be worthwhile, the chances of such an event are greater.Ignored
DislikedCurrent status
Unrealized P/L: -3,614.89 (~500.00 from a margin call)
Interest: +330.71Ignored
DislikedYes , YEN base carry trade seems very difficult in bear market, my plan is to wait for the bottom to go long and get out at 38% or 62% retracement.
I think non YEN base carry trade still has change , such as EURTRY .Ignored
DislikedI am planning and waiting for try/jpy goes buttom to enter this trade.
Since the market is bearish, I will not keep the position open for long time, the gain and loss on the try/jpy itself is a lot more interesting than 39% per year.
Since you mentioned AUD deposit in the beginning of your post, You may consider shorting AUDTRY , if you base currency is MYR and do 1x leverage than what do you will be equivalent to short MYR long TRY ( convert MYR to AUD as deposit then short AUDTRY)
I am using SAXO SingaporeIgnored
DislikedLatest update ,
2 weekd ago, the account opened in Feb got MC.
and this week,
2 accounts that opened last year, October , both also MC .
seems like the risk for this strategic is very real+high ...
by the way, which website has the chart for TRY/JPY?
i hope to enter when the price hit rock bottom, and for the time being earning the AUD daily swap ..Ignored
DislikedLatest update ,
2 weekd ago, the account opened in Feb got MC.
and this week,
2 accounts that opened last year, October , both also MC .
seems like the risk for this strategic is very real+high ...
by the way, which website has the chart for TRY/JPY?
i hope to enter when the price hit rock bottom, and for the time being earning the AUD daily swap ..Ignored
DislikedI see there are many of us that see carry trades as still possible and sensible in the long term.
I am also practicing (but have just this week opened the first position) a long-term carry trade position on TRYJPY.
My strategy:
Leverage 4:1
Every three months a new position is opened (and funds transferred to trading account)
Position entry is 2:1 + 2:1 (within a span of 1 month), if I assess that the price on the day of first entry is low, i enter at 4:1 immediately.
Term to capitalization: 5 years. During that time of the investment every 6 months an assessment of current state and technical analysis for the pair. After 5 years, if all the planets are in the right alignment just collect the interest and currency rate differential profit.
Thats the strategy, we'll see how it works out.Ignored
Dislikedhi mar,
see if I understand you.
say you got $20,000 in capital......at 50:1 = $ 1 mil trading capital
so you work up your position slowly to $ 500,000 and get out if your stop is hit.
is your SL a certain amount of pips or a percentage of purchase price?
seems you do it a lot smarter than letting the price run amok like the others are proposing.
could you give me an example please?
thanksIgnored