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Swap Master - Market Neutral Arbitrage Trading

  • #21
  • Nov 14, 2019 11:34pm Nov 14, 2019 11:34pm
Quoting A. Collins
{quote} Well, one could argue that a portfolio generates some kind of generic swap but that's where the similarities ends. Interest rates do change of course over time but i do not see that as a risk because when some go down, others will go up. I see it like this: The game stays the same but the players change from time to time. That's ok. Forex Brokers can go bankrupt but when you trade with regulated firms it is very unlikely that you will loose some or all of your deposit. ASIC regulated brokers are required to keep all client funds in segregated...
I agree what you have said and I believe as long as somebody can avoid those shady ones, this is a pretty safe idea. I don't see it as a problem to allocate some investment on it. I will come back to this one.
  • #22
  • Nov 15, 2019 2:45am Nov 15, 2019 2:45am
Quoting ChinaTraderz
{quote} I agree what you have said and I believe as long as somebody can avoid those shady ones, this is a pretty safe idea. I don't see it as a problem to allocate some investment on it. I will come back to this one.
Thank you. I always appreciate feedback from traders with years of experience.
  • #23
  • Nov 16, 2019 12:46am Nov 16, 2019 12:46am
A normal, or standard portfolio as you described it on your website. How many pips does it make within a month?
  • #24
  • Nov 16, 2019 4:05am Nov 16, 2019 4:05am
Quoting JohnFX_King
A normal, or standard portfolio as you described it on your website. How many pips does it make within a month?
I think you haven't fully understand on this OP concepts. It doesn't make pips because it's pretty similar to fixed income or government bond type of trading. It is just kinda swap arbitrage. Let me give you a simple example:

Broker A USD/JPY BUY swap = USD 10
Broker B USD/JPY SELL swap = (-USD 2)

This means you can simply at the same time BUY 1 lot USD/JPY on Broker A to earn USD 10 per day and SELL 1 lot USD/JPY on Broker B and you will lose USD 2 swap per day. This equivalent to Broker A (USD10) - Broker B (-USD2) = you profit USD 8 per day regardless which the direction goes.
  • #25
  • Nov 16, 2019 9:20am Nov 16, 2019 9:20am
I have checked a dozen brokers and have not found any that pay out more than they collect between them. This is with reputable brokers. If one has to use a scam broker to make this work then its useless.
I EAT PIPS
  • #26
  • Nov 16, 2019 1:26pm Nov 16, 2019 1:26pm
Quoting JohnFX_King
A normal, or standard portfolio as you described it on your website. How many pips does it make within a month?
The software calculates for you how much pips/points it makes but you have to consider that point and pip values are not the same across all FX instruments. Here is an example:

Attached Image


This is a running portfolio. It generates 452.40 points or 45.24 pips a day. Within one month (30.41 days), that sums up to 13771.06 points or 1377.11 pips. But here is the thing. The pip value isn't 10$/Lot like on EURUSD and a couple of other pairs. It even differs between trades included in the portfolio and as result the figure can be easily misleading.

Using % is a lot easier. If you have some time, take a look to the system description page. You will find several portfolio examples there.

Here is the link: https://forex21.com/swapmaster/
  • #27
  • Nov 16, 2019 1:27pm Nov 16, 2019 1:27pm
Quoting ChinaTraderz
{quote} I think you haven't fully understand on this OP concepts. It doesn't make pips because it's pretty similar to fixed income or government bond type of trading. It is just kinda swap arbitrage. Let me give you a simple example: Broker A USD/JPY BUY swap = USD 10 Broker B USD/JPY SELL swap = (-USD 2) This means you can simply at the same time BUY 1 lot USD/JPY on Broker A to earn USD 10 per day and SELL 1 lot USD/JPY on Broker B and you will lose USD 2 swap per day. This equivalent to Broker A (USD10) - Broker B (-USD2) = you profit USD 8 per...
I could not say it better.

Thank you.
  • #28
  • Nov 16, 2019 2:40pm Nov 16, 2019 2:40pm
Quoting jshear
I have checked a dozen brokers and have not found any that pay out more than they collect between them. This is with reputable brokers. If one has to use a scam broker to make this work then its useless.
Hello Jeff.
I don't know what you have checked but it is not as easy as EURUSD Global Prime Long and EURUSD Axi Trader Short. Sure, that would be nice but it is not. There is a bit more to it.

Regarding reputable brokers:

Well, this is a question where every trader will have its own answer. Its a bit like "What is the best car?" question. Here are a couple of examples:

Dukascopy Bank Swiss
A few weeks ago I had a discussion with a well known and respected trader. We discussed the Swap Master system and available broker options. When I started to talk about Dukascopy, he told me that his experience with them was just terrible and he would certainly not use this broker. I find they are great and never had any problems with them.

Global Prime
The same trader told me than that he is very happy with Global Prime. I told him that I never had an account with them and do not plan to have an account with them because their swap rates are very expensive.

Instaforex
In my humble opinion flushing money down the toilet or sending it to Instaforex is one and the same thing. But, a client from the Russian Federation just told me today that he is a happy Instaforex client and asked me if he could use his existing Instaforex account for Swap Master. Hmmm

Here are my personal broker requirements:

  1. The broker needs to be regulated.
  2. Support needs to be reasonable quick and competent.
  3. Execution costs needs to be reasonable. Raw spread + Commission models or reasonable fixed spreads.
  4. Funding and Withdrawal fees should be reasonable as well.
  5. They should be not a known bucket shop.

That's my requirement for brokers to make it on my list. Its not super sophisticated but so far those simple rules served me well.

I hope this helps!

  • #29
  • Nov 16, 2019 4:34pm Nov 16, 2019 4:34pm
Quoting A. Collins
{quote} Hello Jeff. I don't know what you have checked but it is not as easy as EURUSD Global Prime Long and EURUSD Axi Trader Short. Sure, that would be nice but it is not. There is a bit more to it. Regarding reputable brokers: Well, this is a question where every trader will have its own answer. Its a bit like "What is the best car?" question. Here are a couple of examples: Dukascopy Bank Swiss A few weeks ago I had a discussion with a well known and respected trader. We discussed the Swap Master system and available broker options. When I started...

Sounds good. Can you give us a good broker example ?

Jeff
I EAT PIPS
  • #30
  • Nov 17, 2019 5:33am Nov 17, 2019 5:33am
Quoting jshear
{quote} Sounds good. Can you give us a good broker example ? Jeff
Comparing rates and constructing portfolios is a lot of work and while I do share detailed portfolio research with Swap Master traders, I do not share it for free because of two reasons:

1) Everybody who wants to find the information can find it. Brokers do not make a secret of their rates. All it takes is some effort.
2) Swap Master is an advanced piece of software. In order to succeed with it a trader needs to put in some time to study the concept, the software and all the different possibilities. If one does not want to show some effort at the very beginning it would end up as frustrating experience for the trader and me as developer as well.

Anyway, if you already checked a dozen of brokers but did not find what you was looking for. Simple send me a short E-Mail with your excel sheet (or whatever you used for comparing) to my E-Mail. I will be more than happy to point you in the right direction. https://forex21.com/contact-us/

I hope this helps!
Alexander
  • #31
  • Nov 17, 2019 5:45am Nov 17, 2019 5:45am
Very interesting ... But what happens if there are some crazy news and market goes wild a spike puts one account in SO and then returns ?
  • #32
  • Nov 18, 2019 2:35am Nov 18, 2019 2:35am
Quoting smeshkata
Very interesting ... But what happens if there are some crazy news and market goes wild a spike puts one account in SO and then returns ?
The position size must be reasonable I guess.
I played with the settings - the money management is very advanced I can say. The smaller is lot size, the farther is critical range line
That's my demo testing account daily chart
Attached Image (click to enlarge)
Click to Enlarge Name: 1.png Size: 46 KB

The range is really reasonable.
  • #33
  • Nov 18, 2019 7:27am Nov 18, 2019 7:27am
Hello Alexander,
Just one question: If we buy your software, do you recommend the best brokers and pairs to have the best % of positives Swaps or we have to do the work by ourself?

Best regards
Peter
  • #34
  • Nov 18, 2019 9:08am Nov 18, 2019 9:08am
Quoting pitch6767
Hello Alexander, Just one question: If we buy your software, do you recommend the best brokers and pairs to have the best % of positives Swaps or we have to do the work by ourself? Best regards Peter
Hello Peter.

We share our research with our Swap Master traders and we also have a special forum group where users can exchange their experience.

The research we share includes:

  1. Portfolio ideas with detailed figures about expected gains.
  2. Broker information including info about regulation etc.


I hope this helps!
If you have more questions, please let me know.

Alexander

  • #35
  • Nov 18, 2019 2:41pm Nov 18, 2019 2:41pm
Quoting Solo11
{quote} The position size must be reasonable I guess. I played with the settings - the money management is very advanced I can say. The smaller is lot size, the farther is critical range line That's my demo testing account daily chart {image} The range is really reasonable.
Hello Solo.
Yes, right. Postion size is a vital element of the trade. The size you picked will give you approximately 2 month or more space before you have to re balance your portfolio.

Alexander
  • #36
  • Nov 19, 2019 1:33am Nov 19, 2019 1:33am
How much is the minimum investment must be for each account?
  • #37
  • Nov 19, 2019 10:03am Nov 19, 2019 10:03am
Quoting Braveheart90
How much is the minimum investment must be for each account?
Technically, the minimum is defined by the broker (min account deposit). However, I usually recommend to start with at least 1000 $ / portfolio and build from there.

I hope this helps.
Alexander
  • #39
  • Nov 20, 2019 11:09am Nov 20, 2019 11:09am
Thank you.
Can I use Oanda for my portfolio? I have my live account there.
  • #40
  • Nov 20, 2019 2:12pm Nov 20, 2019 2:12pm
Quoting Braveheart90
Thank you. Can I use Oanda for my portfolio? I have my live account there.
Hello Braveheart.

I think you can, yes. I am still in the process of verifying their swap rates. As soon I have definitive numbers I will let you know.

I hope this helps!

Alexander
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