So clear me up on this one point: Are you dollar-weighting it based on the prices 5 years ago or prices today? Because, prices change. I'm not quite sure which method is right, quite frankly. And you're not changing the weightings, right? Or are ...

DD should be much larger than that, 2/20/04-5/11/04 shows up around -6% DD for me. From the way you phrased your methodology, it's hard to figure out where our methods diverge. I'll explain mine in more detail and if you do the same we can find ...

Ok, here's a comparison of basket prices over 5 years. Included is: mine, ElectronicSavants, and DGCFX's. Those last two have a very similiar basket with a slightly different weighting. Both of them went into negative NAV territory in the start of ...

Yup. If you're still in doubt, try just buying a pair for one full day in a game account, interest is paid at 1pm EST if I remember correctly. -Aksel

Exactly. It's like a bank. They only give 1% on savings, but charge 5% on loans. The difference is their profit. Further example: you buy AUDJPY, which is interest positive. AUD pays aroun 7%, JPY charges around 0%. You make the difference, 7-0 = 7% ...

DGFX's basket blew up when I looked at it (start of 2002 NAV goes negative, it starts at 100k like DGFX's) I've attached the graph. But since I had all the basket building blocks in place, it's easy to synthesize buy and hold baskets now. Quite ...

Ok, that went quicker than I thought, I thought of an easy solution that didn't require me to scrap all my previous work. The difference is very visible... and increased the DD to 8.8% from 7.2%. Interestingly enough, the current DD is around 6%, ...

url explains it pretty good. as does url There's a link on that page to their form that can show you historical and present interest rates as well. -Aksel

For those interested in past performance of various carry baskets, check out this difference! For those who haven't been following the thread, my earlier screenshots my entire system based on a historical basket price, which I had built based on % ...

Now if we withdraw an amount equal to the +UPL without selling positions I believe that has the effect of decreasing margin and immeadiately increasing DD. If we liquidate, thereby realizing UPL then take money and reenter based on the new balance ...

I would be very careful with the tunnel method, when I first read about it online I got excited, especially with the author's backtesting results. I plugged it into TradeStation however, and found they forgot to mention many of the losses the system ...

Heh, you're going right for the meat and potatoes of the matter. 1. 7,200 margin used x 50-1 account leverage at Oanda = 360,000. Account size is 36,000, so leverage really is 10:1. This may be an odd way of thinking about it, but it made the ...

Hey Sjburdi, glad to see you're interested in knowing more! 1. Total margin used is initially 10:1, or roughly 7,200 of the 36,000 for all the entry methods. 2. Aksel's Carry represents my own carry basket - but only the price. It shows the price ...

SamDan, 1. Yes I did see your attachments, the graphs are quite nice to look at and the spreadsheet is an eyeful but I'm not able to determine from them how you trade your basket, what its comprised of or how it differs from mine. If you would ...

SamDan, Did you look at my attachments at all? Your post indicates you may have missed some crucial elements.... number one being the main point I was trying to make. I have to disagree about the apples to oranges comparison. Perhaps it was this ...

Some more stuff to think about — For those who become intrigued by my previous post and desire more information, here's some. -Aksel

Got a widescreen Dell 24" LCD (FPW2405 is the model number)... awesome monitor! Plays movies, games all with no visible issues, color is great, and it's huge, but not deep! Most screens like this cost $2-$3 grand, but this one can be purchased for ...

Some thoughts - Some of you are on a different angle than I approach carry trading. I hesistate to say "flat out wrong" because we all have different goals of trading, which results in different approaches. Here's some quotes from chaffcombe on the ...

Yes I did, I've since removed that, as it had some inaccuracies that I wanted to fix. Even my last graph is slightly off kilter for any system that involves selling. My buying equations are all correct though, and I've made some fascinating ...

A treat! — Finally got enough work done to post an update.... been working on the "addto" part of the equation to answer the basic question: What is the optimal way to "trade" your basket? Keep in mind: weighting is staying the same here, it's ...