Lots of good wisdom here, Qman! Yes, there is lots of good in this system, better than any I have tried before. Just be very careful not to get overleveraged, that is the main drawback.
DislikedThe ultimate unwind on these intrest rate extreme pairs is tied exactly to that... the interest rate spread. As long as that is in place I don't think we would see anything dramatic enough to make a complete melt down in our accounts (cross my fingers and pray never to see it...). One should watch the interest rate adjustments between the two (and not necessarily only GJ), and leave when it stops being -- I don't know -- in the top 4? When/if that happens, find whatever is more favorable. Let the interest rates lead you out of the pair and into another. I think if we do that we'll probably be okay. And since those kinds of moves are unlikely to happen literally over night, I think it is pretty safe. But if it happens, a good trader wouldn't be married to the pair just because it has yielded a fortune in the last 2 or 3 or 10 years, ... whatever.
The neatest thing about this method is that it is in keeping with my ideal state. No bias on what the market wants to do. No guessing. Because it really doesn't matter what I think the market SHOULD be doing. The only thing that matters is what is happening. And then just go with it. Don't fight it. The second you say to yourself the market is wrong you just pulled the trigger on the gun you pointed in your mouth. The market is NEVER wrong. It is also NEVER right. It is a market. Lots of influencers, but no single entity controls. And if you doubt it, then remember... The Bank of England vs George Soros. BOE was betting they could control their own currency. Result: Soros meets a billion dollar pay day. He is hardly my hero, but he knew when the other guy got too smart for their own good, and he wasn't afraid to go with the market, even if it put him at odds with the biggest guy on the block. This system helps take the emotion out. Personally, that is exactly what I need.Ignored