|QuantemPips ||Feb 23, 2020 11:56am | Post# 102583 |
Hello. A question for non-scalpers if i may. How do you manage buy trades given negative swaps. For example the down trends are a little easier as in one can keep positions open for over a day or a even a few days as the swap is just adding up. But im assuming the strategy on buy trades should be to not hold a trade and try to close intra-day every time? Assuming 0820 holds in the coming week and we see some fashion of retrace to around 1.1 how would you manage these buys?. Thanks.
Carry trade is right. In case of EUR / USD it's "down hard, easy up". Example: Went short 10 lots late last October from 1.1061. Held for 3 months picking up $35 a day in swap. Cashed out at 1.0980 (which wound up being WAY too early, but who knew?) picking up 800+ pips on the 10 lots + $3000 in swap. Now, I'm "up easy", long on only 1 lot from 1.0825 so I'm only paying swap on one lot while I wait for the market to move back up towards the top of it's (daily / hourly) range. Friday was a good day. When the trade gets back up towards the top of it's range, I'll cash my long and turn around and go hard balls out short again.
CAUTION: One has to be willing to accept potential very deep drawdowns and have sizeable excess margin to withstand them.
I know most on this thread will say I'm full of s**t and I admit it's boring as hell, but it works so far. Started with $10k in October of '18. Account balance $52k as of today. IMO much more sound way to trade than trying to constantly time the market.