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Swap Master - Market Neutral Arbitrage Trading

  • #201
  • Jan 6, 2021 2:49pm Jan 6, 2021 2:49pm
Quoting A. Collins
{quote} As all positions are hedged against each other, there is no directional trading risk. That means you wont loose money because of picking the wrong side of the market and as swap trading is incredibly boring (same profit every day at the same time), the emotional risk factor is also eliminated. ....but.... <<< here it comes There are still some risks. They are small but should be mentioned. Broker risk Banks, brokers etc. can go bankrupt. When they do you will have to wait up to 6 months to get your money back. If you use unregulated brokers...
Thanks for the reply Alexander!

Last few questions just to get them out of the way. Is there any problems or any risk involved using a swap free account for the main account? If there is what is the biggest problem?

Also can money be made month on month using just FCA brokers?

Lastly what is the typical monthly return at the moment that your seeing?

That's all my questions!

Rob
  • #202
  • Jan 11, 2021 7:26am Jan 11, 2021 7:26am
Hello Rob.

Is there any problems or any risk involved using a swap free account for the main account? If there is what is the biggest problem?

I know traders who use swap free accounts with success but personally I do not recommend it because there is no such thing like "swap free". If the broker properly executes your trade, the broker will have to pay swap. If you do not pay swap, the broker will pay it for you and that will not work out well in the long run.

Also can money be made month on month using just FCA brokers?

While it is important to use regulated brokers, I don't think it is a good idea to limit yourself to just "FCA regulated brokers'. If only FCA regulated brokers can be used, I do not know.

Lastly what is the typical monthly return at the moment that your seeing?

4 - 9%. The range is wide because the monthly returns depend from many factors such as: Portflio, Instruments, Brokers, Trade Size etc..

I hope this helps.
Please let me know if you have any further questions.

Alexander
  • #203
  • Edited 10:23am Feb 24, 2021 3:06am | Edited 10:23am
Hello Alexander,

If one uses higher leverage and willing to reposition the funds more often can monthly return % increase? If so by how much?

Cheers Martin
  • #204
  • Feb 25, 2021 9:29pm Feb 25, 2021 9:29pm
Quoting bosspips
Hello Alexander, If one uses higher leverage and willing to reposition the funds more often can monthly return % increase? If so by how much? Cheers Martin
Hello Martin.
Sorry for the late reply. I missed your post somehow.

If one uses higher leverage and willing to reposition the funds more often can monthly return % increase? If so by how much?

Yes. By doing so you can double your returns.

I hope this helps. Please let me know if you have any further questions.

Alexander
  • #205
  • Feb 26, 2021 3:05am Feb 26, 2021 3:05am
Hello Alexander,

Thank you for your reply.
What does this mean in terms of percentages at the moment, what would be the highest return? (already doubled)

Cheers Martin
  • #206
  • Mar 3, 2021 10:36am Mar 3, 2021 10:36am
Quoting bosspips
Hello Alexander, Thank you for your reply. What does this mean in terms of percentages at the moment, what would be the highest return? (already doubled) Cheers Martin
Hello Martin.
I see that your main concern is how much you can make. While this is understandable to some degree, this is not how swap trading works (and any kind of trading).

1) Knowledge (Edge)

2) Capital

3) Gains

In this order and only in this order. You cannot start with 20% profit every month and pick up the needed knowledge along the way.

Alexander
  • #207
  • Mar 4, 2021 4:36am Mar 4, 2021 4:36am
Hello Alexander,

I was referring to your answer from Jan.11:

"Lastly what is the typical monthly return at the moment that your seeing?

4 - 9%. The range is wide because the monthly returns depend from many factors such as: Portflio, Instruments, Brokers, Trade Size etc.."

And was wondering if this 9% was already the doubled returns? (and consequently what are the returns at the moment)

Cheers Martin
  • #208
  • Mar 15, 2021 10:13am Mar 15, 2021 10:13am
Hello Martin.

Thank you for your reply. Super simple and conservative portfolios like eurusd long on broker a and short on broker b are at the moment good for 4%. Other combinations are good for up to 9%.

I hope this helps.
Alexander
  • #209
  • Apr 11, 2021 3:35pm Apr 11, 2021 3:35pm
Can U give me you"re real account and confirmed you"re statement at least 1,2,better3 at least 3 years.Alexander
  • #210
  • Apr 16, 2021 9:13am Apr 16, 2021 9:13am
Hey there, is your system still producing 74 dollars day using lets say 2 accounts of 5000 dollars each? Thats the account size im planning to use....im assuming once i buy your software you will divulge which brokers to use and which currency pairs to use to achieve the 74 dollars per day, thanks....Tiago
  • #211
  • Apr 16, 2021 11:05am Apr 16, 2021 11:05am
Quoting tiago
Hey there, is your system still producing 74 dollars day using lets say 2 accounts of 5000 dollars each? Thats the account size im planning to use....im assuming once i buy your software you will divulge which brokers to use and which currency pairs to use to achieve the 74 dollars per day, thanks....Tiago
Probably not as I think he said around 7% per month. So 10000 at 7% is 350. So just over £10 a day.

Obviously unless he says different but that's how I see it
  • #212
  • Apr 17, 2021 8:16pm Apr 17, 2021 8:16pm
Quoting Rob9121
{quote} Probably not as I think he said around 7% per month. So 10000 at 7% is 350. So just over £10 a day. Obviously unless he says different but that's how I see it
Heres his response to me 2.5 months ago:

Hello Tiago.

Thank you for your e-mail. The highest paying combination with one instrument and two broker accounts pays 73.93$/day for every lot traded.

I hope this helps. Please let me know if you have any further questions.

Best Regards,
Forex21 - Andrew
  • #213
  • May 1, 2021 6:43pm May 1, 2021 6:43pm
Hi Alexander,

I hope all is well. There seems to be something wrong with your forum website. I cannot login as it shows a php error. Can you update us on this issue and when it will be resolved?
  • #214
  • May 6, 2021 2:52am May 6, 2021 2:52am
Hi, does anyone use the EA, is it still profitable? I see that the author does not answer here. I would be interested too, thanks.
The past is history, the future is a mystery.....
  • #215
  • May 8, 2021 8:00pm May 8, 2021 8:00pm
My simple mind has generated 2 questions in the run thru the pages.

1. why are the pages full with promises, estimates and projections? about 18 months have passed, and there is still no track record to show?
2. fully hedged is a somewhat relative term, considering, that you have your long position with broker A in country X and your short position with broker B in
country Y


==> SO how do you manage your margin risk??? Or better! How have you managed your margin risk during the last 18 months???


I am so bold to ask these two questions, because I have found my answers by real swap arbing. I used real swap free brokers but the problems are at least the same, if not worse.


Since 2018 I have made on average 6,16% per quarter, in a declining manner as interest differences have faded more more.

This year I stopped the game with a meagre 2,1% return on Q1.

And I can tell you, credit cards have started to glow on several occasions, in order to balance margins and to keep positions running. Especially one year ago, there have been some sleepless nights on Sundays, when FX markets started their week with a sure gap. (Some know-it-all will tell you gaps are no problem, because one account might get liquidated, while the other shows a big profit. They have never tried to close a position in a gaping market. They have never experienced a down platform in gaping market).

I will miss the additional 65k revenue per year, but now are the risks definitely too high for such small returns.

I am exploring other kinds of carry trades now; term trades within commodities, high dividend yields hedged with index futures, or crude LPs against spy/xle/uso.

The classic carry will return sooner or later, but for now it is gone.
  • #216
  • Edited May 28, 2021 2:50am May 27, 2021 7:04pm | Edited May 28, 2021 2:50am
Quoting Rob9121
{quote}Is there any problems or any risk involved using a swap free account for the main account?
I am not a fan of swap free accounts. Those brokers who offer swap free accounts often hide the swap costs or re lable them. Paying less swap on one side of the trade and receive more on the other side works best. At least for me.

Quoting Rob9121
{quote}
If there is what is the biggest problem? Also can money be made month on month using just FCA brokers?
I really don't know but I think it would limit the amount of possible combinations. To use regulated brokers is of course important but I think to limit yourself to 'only' FCA regulated brokers is not the best idea.

Quoting Rob9121
{quote}
Lastly what is the typical monthly return at the moment that your seeing?
I am back at 9% plus change with a very positive outlook. Starter portfolios (2 brokers and just 1 instrument) return 4.64% p. month. See also screenshot.

===

Quoting jbrightman
Hi Alexander, I hope all is well. There seems to be something wrong with your forum website. I cannot login as it shows a php error. Can you update us on this issue and when it will be resolved?
That's strange. Maybe you tried to login during some backup/update process. Please try again. Thank you!

===

Quoting Alex1055
Can U give me you"re real account and confirmed you"re statement at least 1,2,better3 at least 3 years.Alexander
I would be happy to do that but there is no service what can track swap gains from several accounts. And to be perfectly honest, if there would be, I would probably share only old results because otherwise the instrument and broker combination(s) would get crowded quickly and that would not be in the interest of swapmaster users including myself.

===

Quoting eztrader1
1. why are the pages full with promises, estimates and projections? about 18 months have passed, and there is still no track record to show?
I am trade swaps very active and that means I use several accounts, rebalance them on a regular base. I do share my research with clients but not on public boards. If you would like to know how much can be made, you can lookup swap rates to get a pretty precise picture what is possible.

Quoting eztrader1
2. fully hedged is a somewhat relative term, considering, that you have your long position with broker A in country X and your short position with broker B in
country Y
Having a long position on broker A and a short position on broker B (same instrument and same size) is the very definition of "fully hedged". Or is the position not hedged when broker A is located in Germany and broker b in Singapore?

Quoting eztrader1
I used real swap free brokers but the problems are at least the same, if not worse.
There is no such thing as a real swap free broker. Brokers who offer swap free accounts add the swap costs to the spread or charge holding fees or something like that. Using swap free accounts is possible but it is basically cheating and will not work in the long run.

I do not use swap free accounts and I do not recommend them.

Quoting eztrader1
And I can tell you, credit cards have started to glow on several occasions, in order to balance margins and to keep positions running. Especially one year ago, there have been some sleepless nights on Sundays, when FX markets started their week with a sure gap.
Large gaps can be an issue, yes. Sleepless nights I did not have because the swapmaster software looks after the positions better than I anybody can do it manually.

What helps as well.....
1) Stay away from instruments with very high volatility.
2) When the volatility goes up, your trade size goes down.

Quoting eztrader1
The classic carry will return sooner or later, but for now it is gone.
A classic carry trade and swap arbitrage are two different things. Swap trading was challenging when central banks lowered their rates but if you followed the monetary policy you probably noticed that there is a trend to higher interest rates.

Attached Image (click to enlarge)
Click to Enlarge Name: gbp.png Size: 15 KB
  • #217
  • May 28, 2021 12:08pm May 28, 2021 12:08pm
Quoting tiago
Hey there, is your system still producing 74 dollars day using lets say 2 accounts of 5000 dollars each? Thats the account size im planning to use....im assuming once i buy your software you will divulge which brokers to use and which currency pairs to use to achieve the 74 dollars per day, thanks....Tiago
Hello Tiago.
74$ / day is the highest paying combination. It uses a highly volatile instrument and requires a skilled and experienced swap trader to manage. This are not results you can expect when you just start out. It is just not realistic and those who thought in the paste that they can play big right from the beginning made costly mistakes and experienced significant losses.

Realistic is to start with a simple combination and make 4-5% for a few months while you learn everything there is to learn and then step up your game. That said, 4-5% are excellent results and there are very few traders on this forum who make more in the long run.

I hope this helps. Please let me know if you have any further questions.

Alexander
  • #218
  • Edited May 31, 2021 1:48am May 30, 2021 3:23am | Edited May 31, 2021 1:48am
I am right now in the process of doing my weekend research and thought I share some actual examples. To avoid the typical questions from naysayers, I included information about regulation of used brokers. The portfolios use one instrument and two broker accounts.

==1==

Broker A
AFSL regulated (Australia)

Broker B
Bank License, BaFin regulated (Germany)

$22 lot/day

==2==

Broker A
FMA regulated (New Zealand)

Broker B
CySec License, Cyprus (EU side) regulated

$14 lot/day
  • #219
  • Jun 9, 2021 3:00am Jun 9, 2021 3:00am
Excellent news for swap trading.

Attached Image

(snipped from marketwatch)
  • #220
  • Jun 15, 2021 12:35pm Jun 15, 2021 12:35pm
Quoting A. Collins
I am right now in the process of doing my weekend research and thought I share some actual examples. To avoid the typical questions from naysayers, I included information about regulation of used brokers. The portfolios use one instrument and two broker accounts. ==1== Broker A AFSL regulated (Australia) Broker B Bank License, BaFin regulated (Germany) $22 lot/day ==2== Broker A FMA regulated (New Zealand) Broker B CySec License, Cyprus (EU side) regulated $14 lot/day
So am I right in thinking that would be over a 10% return per month taking margin into account?

Please correct me if I'm wrong
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