TradeVestor's.
PLEASE PRINT THIS OUT (CLICK THE #1 IN THE UPPER RIGHT CORNER OF THIS POST BEFORE PRINTING) AS IT WILL BE EASIER FOR YOU TO READ AND TAKE NOTES... IF YOU FEEL COMFORTABLE WITH IT, THEN TAPE IT ON YOUR WALL.
This is the simple system with just one pair, AUD/JPY because it pays the most interest. This system will not trade, but will carry and take advantage of IRA. No silly... not a retirement account...Interest Rate Arbitrage.
http://www.electricsavant.com/INTERESTCOW.xls
Open up your USD Mini account at FXCM and request their "interest free program". Open up a sub-account also. Use 50:1 leverage. This will be your SHORT AUD/JPY account.
When opening your USD FXCM Mini account, you can do it all online. Fax your your id's to their fax number and fill out "interest free" form attached below. NEVER FUND A BROKERAGE ACCOUNT UNTIL YOU GET A CONFIRMING EMAIL WITH INSTRUCTIONS AND WRITE YOUR ACCOUNT NUMBER OR THE WORD, "NEW" OR TEMPORY ACCOUNT# ON YOUR CHECK. Wait for your email from them, advising you that your account is open and ready for funding. After you get your email telling you to fund, call them and check verbally that your account is interest free and has been processed correctly. You can then use the online electronic check system to fund your account with.
then....
Open up a USD Account with Oanda. Open up a sub account also. No need to specify mini or lot...as Oanda only has one account with unit size trade increments. Use 50:1 Leverage (there is a tutorial in Cash & Carry EXOTIC on how to set leverage in Oanda, along with pictures). This will be your LONG AUD/JPY account.
When opening your USD Oanda account, you can do it all online. Fax your your id's to their fax number. Wait for your email from them, advising you that your account is open and ready for funding. NEVER FUND A BROKERAGE ACCOUNT UNTIL YOU GET A CONFIRMING EMAIL WITH INSTRUCTIONS AND WRITE YOUR ACCOUNT NUMBER ON YOUR CHECK. After you get your email telling you to fund, you will need to mail a check and wait. Do not use PayPal as they charge 3% in and 3% out. You must accept that if you fund with Paypal at Oanda. Oanda will only let you take it out to Paypal, this is a security protocoll that they will not make exceptions to. I have often wondered what would happen if you no longer had a PayPal account. If you use Wires your bank has fees for that. Also you must lay out the money immediatley and wait for the wire to be sent and received and processed. When you mail a check it will not be removed from your account until they cash it. You must live in the USA to fund with a personal check and I find it just as safe. Now getting money back, in large amounts it may be best to use a wire as you do not make interest while its in transit....do the math and pencil it out, then decide when it is prudent to use wires. TradeVestor's we are money flow experts Ok? We are detail oriented and observant.
Now. This is the system and what you do:
Go Short 1 Mini (10,000 UNITS) AUD/JPY for every 147 bucks you have on deposit, in FXCM at early AM (mst) hours. (Do this side of the hedge first, as this assures you of an accurate time lag for your fill confirmation as FXCM is not like Oanda and they can lag you in confirmations and play games that Oanda does not)
Then go Long in Oanda at the precise same time in AUD/JPY with 1 Mini (10,000 UNITS) for every 147 bucks you have on deposit.
You can bring up both platforms and park your trade ticket, so when your ready to go, it's just a "click" and a "click" and your "in"...DO NOT SPECULATE WITH YOUR HEDGE, JUST ENTER ASAP WITH BOTH TICKETS OK? FXCM FIRST, THEN OANDA...CLICK...CLICK...DO NOT EVEN LOOK AT THE PRICE....I REPEAT DO NOT EVEN LOOK AT THE PRICE.
If you get near a margin call on either of your platforms, then reset your hedge by exiting both sides. You will need to rebalance the money from one dealer/marketmaker to the other then you can re-enter at one mini per 147 bucks. You will realize compounding at this point as Oanda has fortified your balance along the way with that marvelous interest earned...yes it's daily and direct to your balance not a price quote at rollover. Sure you will realize the spread each time you reset and lose some time in waiting to receive your checks and make the corresponding deposit on the other side (online checks at FXCM, but Oanda mails them. Oanda charges 15 bucks if you get more than one check a month. larger traders can just use wires, when it becomes a breakeven issue in regards to the fee's)...but in a year you will be happy with your net yield....DO NOT BE AFRAID TO RESET TO REALIZE A BALANCE OF THE HEDGE AND THE BONUS OF COMPOUNDING YOUR EARNINGS FROM DAILY INTEREST INJECTIONS. (I will go over "how to think" in regards to doing a reset for the sole purpose of acceleration of compounded capital, and not out of necessity because you are near a margin call)
You can add money anytime to your "perfect" hedge as long as you "add to" on both sides, at the same time in equal amounts of minis. Try to enter in the early AM (mst) time and not on NFP or Greenspan day.
I suggest that you do not wait for a margin call to determine when you exit and reset, as you remove control from the "WHEN" and the "HOW MUCH" and at what "QUOTE" the computer gets you out at. Just exit when you get near and take a break, while waiting for the transfers Ok? TRADING IS NOT ABOUT HOW MUCH YOU TRADE, BUT HOW SMART YOU TRADE.
I have got the opening of FXCM and the funding in process and will be able to trade it LIVE WITH REAL MONEY, for all of you to see, in around two weeks, when my funding of $2,500.00 in each dealer/marketmakers account is complete.
Do you understand that you will make interest in Oanda at around 250% a year and not pay interest in FXCM because you have the "interest free" account and you will only pay a one-time fee of one buck per Mini with NO COST OF CARRY? (AT A SAVINGS OF 287% PER YEAR MINUS ONE BUCK PER MINI)
Private Forum members and TradeVestor's. I would like to thank you for subscribing. And now I will open this discussion thread up to your posts.
Questions and Comments....Speak up... that is why I am here and at at your ser vice....This is not a public forum...so show your colors and real honest concerns without worrying that the public will comment. This is about trading and YOU making money. Your independence in thought and your observation skills is on trial here....and I will try and help with what I know without Bullshit.
Michael B.
P.S. As you ask your questions I may alter them and edit them for presentation. They may not resemble your original layout, but I will answer your question (s). Just go along with this, you will see that the reasons that I need control is purely for presentation and to cut through what I perceive to be bad presentation. I do not think you are here just to have a Forex Factory #2. THIS IS NOT ENTERTAINMENT. THIS IS THE BUSINESS OF TRADING. YOU WILL NOTICE THAT I SPEAK MORE CLEARLY HERE COMPARED TO THE PUBLIC FORUMS, AS I DO NOT NEED TO GET YOUR ATTENTION OR SPUR YOUR CURIOSITY. I KNOW WHY YOU ARE HERE AND I KNOW YOU ARE SERIOUS, AS YOU HAVE PAID THE PRICE.
P.P.S. Everything is in "Plain Speak" here, so you advanced traders from Banks, HF's and the "institution", please dumb it down...
PLEASE PRINT THIS OUT (CLICK THE #1 IN THE UPPER RIGHT CORNER OF THIS POST BEFORE PRINTING) AS IT WILL BE EASIER FOR YOU TO READ AND TAKE NOTES... IF YOU FEEL COMFORTABLE WITH IT, THEN TAPE IT ON YOUR WALL.
This is the simple system with just one pair, AUD/JPY because it pays the most interest. This system will not trade, but will carry and take advantage of IRA. No silly... not a retirement account...Interest Rate Arbitrage.
http://www.electricsavant.com/INTERESTCOW.xls
Open up your USD Mini account at FXCM and request their "interest free program". Open up a sub-account also. Use 50:1 leverage. This will be your SHORT AUD/JPY account.
When opening your USD FXCM Mini account, you can do it all online. Fax your your id's to their fax number and fill out "interest free" form attached below. NEVER FUND A BROKERAGE ACCOUNT UNTIL YOU GET A CONFIRMING EMAIL WITH INSTRUCTIONS AND WRITE YOUR ACCOUNT NUMBER OR THE WORD, "NEW" OR TEMPORY ACCOUNT# ON YOUR CHECK. Wait for your email from them, advising you that your account is open and ready for funding. After you get your email telling you to fund, call them and check verbally that your account is interest free and has been processed correctly. You can then use the online electronic check system to fund your account with.
then....
Open up a USD Account with Oanda. Open up a sub account also. No need to specify mini or lot...as Oanda only has one account with unit size trade increments. Use 50:1 Leverage (there is a tutorial in Cash & Carry EXOTIC on how to set leverage in Oanda, along with pictures). This will be your LONG AUD/JPY account.
When opening your USD Oanda account, you can do it all online. Fax your your id's to their fax number. Wait for your email from them, advising you that your account is open and ready for funding. NEVER FUND A BROKERAGE ACCOUNT UNTIL YOU GET A CONFIRMING EMAIL WITH INSTRUCTIONS AND WRITE YOUR ACCOUNT NUMBER ON YOUR CHECK. After you get your email telling you to fund, you will need to mail a check and wait. Do not use PayPal as they charge 3% in and 3% out. You must accept that if you fund with Paypal at Oanda. Oanda will only let you take it out to Paypal, this is a security protocoll that they will not make exceptions to. I have often wondered what would happen if you no longer had a PayPal account. If you use Wires your bank has fees for that. Also you must lay out the money immediatley and wait for the wire to be sent and received and processed. When you mail a check it will not be removed from your account until they cash it. You must live in the USA to fund with a personal check and I find it just as safe. Now getting money back, in large amounts it may be best to use a wire as you do not make interest while its in transit....do the math and pencil it out, then decide when it is prudent to use wires. TradeVestor's we are money flow experts Ok? We are detail oriented and observant.
Now. This is the system and what you do:
Go Short 1 Mini (10,000 UNITS) AUD/JPY for every 147 bucks you have on deposit, in FXCM at early AM (mst) hours. (Do this side of the hedge first, as this assures you of an accurate time lag for your fill confirmation as FXCM is not like Oanda and they can lag you in confirmations and play games that Oanda does not)
Then go Long in Oanda at the precise same time in AUD/JPY with 1 Mini (10,000 UNITS) for every 147 bucks you have on deposit.
You can bring up both platforms and park your trade ticket, so when your ready to go, it's just a "click" and a "click" and your "in"...DO NOT SPECULATE WITH YOUR HEDGE, JUST ENTER ASAP WITH BOTH TICKETS OK? FXCM FIRST, THEN OANDA...CLICK...CLICK...DO NOT EVEN LOOK AT THE PRICE....I REPEAT DO NOT EVEN LOOK AT THE PRICE.
If you get near a margin call on either of your platforms, then reset your hedge by exiting both sides. You will need to rebalance the money from one dealer/marketmaker to the other then you can re-enter at one mini per 147 bucks. You will realize compounding at this point as Oanda has fortified your balance along the way with that marvelous interest earned...yes it's daily and direct to your balance not a price quote at rollover. Sure you will realize the spread each time you reset and lose some time in waiting to receive your checks and make the corresponding deposit on the other side (online checks at FXCM, but Oanda mails them. Oanda charges 15 bucks if you get more than one check a month. larger traders can just use wires, when it becomes a breakeven issue in regards to the fee's)...but in a year you will be happy with your net yield....DO NOT BE AFRAID TO RESET TO REALIZE A BALANCE OF THE HEDGE AND THE BONUS OF COMPOUNDING YOUR EARNINGS FROM DAILY INTEREST INJECTIONS. (I will go over "how to think" in regards to doing a reset for the sole purpose of acceleration of compounded capital, and not out of necessity because you are near a margin call)
You can add money anytime to your "perfect" hedge as long as you "add to" on both sides, at the same time in equal amounts of minis. Try to enter in the early AM (mst) time and not on NFP or Greenspan day.
I suggest that you do not wait for a margin call to determine when you exit and reset, as you remove control from the "WHEN" and the "HOW MUCH" and at what "QUOTE" the computer gets you out at. Just exit when you get near and take a break, while waiting for the transfers Ok? TRADING IS NOT ABOUT HOW MUCH YOU TRADE, BUT HOW SMART YOU TRADE.
I have got the opening of FXCM and the funding in process and will be able to trade it LIVE WITH REAL MONEY, for all of you to see, in around two weeks, when my funding of $2,500.00 in each dealer/marketmakers account is complete.
Do you understand that you will make interest in Oanda at around 250% a year and not pay interest in FXCM because you have the "interest free" account and you will only pay a one-time fee of one buck per Mini with NO COST OF CARRY? (AT A SAVINGS OF 287% PER YEAR MINUS ONE BUCK PER MINI)
Private Forum members and TradeVestor's. I would like to thank you for subscribing. And now I will open this discussion thread up to your posts.
Questions and Comments....Speak up... that is why I am here and at at your ser vice....This is not a public forum...so show your colors and real honest concerns without worrying that the public will comment. This is about trading and YOU making money. Your independence in thought and your observation skills is on trial here....and I will try and help with what I know without Bullshit.
Michael B.
P.S. As you ask your questions I may alter them and edit them for presentation. They may not resemble your original layout, but I will answer your question (s). Just go along with this, you will see that the reasons that I need control is purely for presentation and to cut through what I perceive to be bad presentation. I do not think you are here just to have a Forex Factory #2. THIS IS NOT ENTERTAINMENT. THIS IS THE BUSINESS OF TRADING. YOU WILL NOTICE THAT I SPEAK MORE CLEARLY HERE COMPARED TO THE PUBLIC FORUMS, AS I DO NOT NEED TO GET YOUR ATTENTION OR SPUR YOUR CURIOSITY. I KNOW WHY YOU ARE HERE AND I KNOW YOU ARE SERIOUS, AS YOU HAVE PAID THE PRICE.
P.P.S. Everything is in "Plain Speak" here, so you advanced traders from Banks, HF's and the "institution", please dumb it down...
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Interest_Free_Commission_Acknowledgement-_11102005_fxcm.zip
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