GBPJPY scares me big time for this system since this system is all about adding to a losing position. We all know that GBPJPY may easily run 200 pips per day, and if we have a couple of weeks of heavy downtrending market sentiment we could be tickling the margin call level. Besides, the broker's margin call requirements are more strict for GBPJPY than AUDJPY, which makes the margin call problem even more.
I have been toying with Oanda's Margin Call Calculator and Swap Calculator and it seems like trading 1 lot on USDJPY and 0.6 lot on GBPCHF might be a sensible combination taking into account:
I have been toying with Oanda's Margin Call Calculator and Swap Calculator and it seems like trading 1 lot on USDJPY and 0.6 lot on GBPCHF might be a sensible combination taking into account:
- The spread cost (very low for USDJPY and medium for GBPCHF)
- The volatility (GBPCHF moves about 60% more than USDJPY per day)
- Margin requirements (margin for GBPCHF is about a 10% more strict than on USDJPY, at least on Oanda)
- Currency diversification
- Swap rewards (GBPCHF yields 15 dollars per lot per day whereas USDJPY yields 11)
So Im going to Demo this system for 1 lot on USDJPY and 0.6 lots on GBPCHF.
Im anxiously waiting for your equity charts billbss
PS: USDJPY seems better than AUDJPY despite the fact that AUDJPY yields slightly better because USDJPY has smaller spreads and smaller average daily range. Plus the yield difference is actually pretty insignificant to be honest.