Hi, Im always on the lookout for a new way to trade and came across this idea earlier today, I am always open for suggestions or criticism so please let me know what you think.
Current swap value for going short on EUR/TRY offered by AlpariUK is +6.13 pips
Current value of the pair is 2.90883
10 year high = 3.19584
10 year low = 1.55579
So if i were to trade 0.01 lot on a micro account my pip value should be as follows (please correct me if im wrong)
1000 x 0.0001 = 0.1 TRY/2.90883 = 0.0343780833 EUR x 1.35643 (EUR/USD rate) = USD 0.0466/pip
therefore a swap value of $0.285/day
if i were to allow a 0.01 lot size per $200 balance at 500:1 leverage, then i would be secure for a 4292 pip movement (disregarding the initial margin)
over the last 10 years there has been a total of 16,400.5 pip movement, if i was to trade ONLY for the swap then i would have made 22,313.2 pips. i.e a profit of $275.72 at 0.01 lot. My current balance would probably be in the negative given that the value of EUR/TRY has risen significantly in the past 10 years so maybe now whilst its towards the upper side it may be a good entry point to not only profit from the swap but also the trade movement.
this is obviously a very small scale operation, but if its all calculated correctly then maybe ramped up abit could be quite a profitable system
Please comment or criticize
Looking forward to a responce
Happy trading guys
Current swap value for going short on EUR/TRY offered by AlpariUK is +6.13 pips
Current value of the pair is 2.90883
10 year high = 3.19584
10 year low = 1.55579
So if i were to trade 0.01 lot on a micro account my pip value should be as follows (please correct me if im wrong)
1000 x 0.0001 = 0.1 TRY/2.90883 = 0.0343780833 EUR x 1.35643 (EUR/USD rate) = USD 0.0466/pip
therefore a swap value of $0.285/day
if i were to allow a 0.01 lot size per $200 balance at 500:1 leverage, then i would be secure for a 4292 pip movement (disregarding the initial margin)
over the last 10 years there has been a total of 16,400.5 pip movement, if i was to trade ONLY for the swap then i would have made 22,313.2 pips. i.e a profit of $275.72 at 0.01 lot. My current balance would probably be in the negative given that the value of EUR/TRY has risen significantly in the past 10 years so maybe now whilst its towards the upper side it may be a good entry point to not only profit from the swap but also the trade movement.
this is obviously a very small scale operation, but if its all calculated correctly then maybe ramped up abit could be quite a profitable system
Please comment or criticize
Looking forward to a responce
Happy trading guys
