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Arbitrage with no-interest broker

  • #61
  • Nov 29, 2006 11:05am Nov 29, 2006 11:05am
titikokatiting
Here is a link to the spreadsheet mentioned in my earlier post. Not an original but a modified ver of the original. Also, the thread that it is found in is one you may wish to read through in its entirety. It may answer some questions or possibly bring up a few u haven't thought of.
http://www.forexfactory.com/forexfor...tcow#post27564

I really liked ElectricSavant. The guy had some very interesting ideas.
In trading, there is no bullshit. You either make money or you don't.
  • #62
  • Nov 29, 2006 11:38am Nov 29, 2006 11:38am
Quoting mrgreen
titikokatiting
Here is a link to the spreadsheet mentioned in my earlier post. Not an original but a modified ver of the original. Also, the thread that it is found in is one you may wish to read through in its entirety. It may answer some questions or possibly bring up a few u haven't thought of.
http://www.forexfactory.com/forexfor...tcow#post27564

I really liked ElectricSavant. The guy had some very interesting ideas.

thanks! will do the reading. did you try that method?
  • #63
  • Nov 29, 2006 12:09pm Nov 29, 2006 12:09pm
My studies of the 'Cash And Carry" method were purely academic at the time. I do calculate the swap impact into my potential trades as I now hold an avg of 2 - 5 days so the studies were not wasted.
Quoting titikokatiting
thanks! will do the reading. did you try that method?
In trading, there is no bullshit. You either make money or you don't.
  • #64
  • Nov 29, 2006 12:42pm Nov 29, 2006 12:42pm
Quoting mrgreen
My studies of the 'Cash And Carry" method were purely academic at the time. I do calculate the swap impact into my potential trades as I now hold an avg of 2 - 5 days so the studies were not wasted.
his system seems complicated, for me, the system that was discussed here seems promising. 2.7% a month or 32% a year. compound it for 10 years, i think it can create hell a lot of money with no risk...i dont know (maybe there is no risk except when your broker becomes bankrupt)...feel free to comment...
  • #65
  • Nov 29, 2006 1:04pm Nov 29, 2006 1:04pm
  •  iya
  • | Joined Oct 2006 | Status: always protect yourself | 129 Posts
Quoting titikokatiting
...no risk except when your broker becomes bankrupt...
I think it became pretty clear now that the source of the profits would be the brokers pockets, so I wouldn't call it a viable long term investment strategy let alone the holy grail. The 32% p.a. still seem pretty optimistic.

For long term capital growth without hassle, simply invest in a hedge fund or private equity fund which will give you 6-9% p.a. on average of honest profit.
  • #66
  • Nov 29, 2006 1:40pm Nov 29, 2006 1:40pm
Quoting iya
I think it became pretty clear now that the source of the profits would be the brokers pockets, so I wouldn't call it a viable long term investment strategy let alone the holy grail. The 32% p.a. still seem pretty optimistic.

For long term capital growth without hassle, simply invest in a hedge fund or private equity fund which will give you 6-9% p.a. on average of honest profit.
I think the real source of profit is the interest, because what im doing is like giving the broker a loan, and what they do is they multiply my money to 100 times (leverage of 1:100) then they pay me interest on that multiplied money. the other broker that has no-swap is still happy..why? because if my position is short, obviously, it can be a losing position, then if i close it and replenish it with funds... they will be very happy about it. they will earn from it. the other broker that has my winning trade can't be mad at me, y? because if i leave my position that's doing a positive job or earning, of course you are going to let your profits run..that's just what im going to do..just like what vegas and sidus are doing..letting the profit runs....so i dont see anything wrong with it..=)
  • #67
  • Nov 29, 2006 2:43pm Nov 29, 2006 2:43pm
Look, the truth of the matter is, the # of people doing this sort of thing is limited anyway by the fact that most people won't meet that requirement. The broker charges a commission on the expectation that they'll make up the swap anyway...or at least a portion of it.

The important thing is that the fewer people who do it, the better.

Quoting titikokatiting
I think the real source of profit is the interest, because what im doing is like giving the broker a loan, and what they do is they multiply my money to 100 times (leverage of 1:100) then they pay me interest on that multiplied money. the other broker that has no-swap is still happy..why? because if my position is short, obviously, it can be a losing position, then if i close it and replenish it with funds... they will be very happy about it. they will earn from it. the other broker that has my winning trade can't be mad at me, y? because if i leave my position that's doing a positive job or earning, of course you are going to let your profits run..that's just what im going to do..just like what vegas and sidus are doing..letting the profit runs....so i dont see anything wrong with it..=)
  • #68
  • Nov 30, 2006 3:39am Nov 30, 2006 3:39am
ur right, i'm studying all the factors, if anyone can add to it feel free.

First of all, the interest paying broker:
1) the broker should pay interest on the balance
2) the payment should be everyday, including saturday and sundays, but if it doesnt pay on weekends then it should pay triple on wednesdays...right?
3) high leverage as this can save some pips along the way
4) margin call requirement should be low
5) speed of money transfers, so it's faster to rebalance and get back in the game
6) and pip spread

then the swap free broker
1) company stability (since i'm investing a big amount)
a) years in the business
b) feedback/reputation
c) accreditation/regulation
2) pip spread
3) high leverage
4) low margin call
5) speed of transfer

for the currency pairs:
1) the spread of course
2) volatility
3) and amount of interest earned


feel free to add if anyone thinks of anything and i'll do the research...
  • #69
  • Nov 30, 2006 4:49am Nov 30, 2006 4:49am
Quoting titikokatiting
ur right, i'm studying all the factors, if anyone can add to it feel free.

First of all, the interest paying broker:
1) the broker should pay interest on the balance
2) the payment should be everyday, including saturday and sundays, but if it doesnt pay on weekends then it should pay triple on wednesdays...right?
3) high leverage as this can save some pips along the way
4) margin call requirement should be low
5) speed of money transfers, so it's faster to rebalance and get back in the game
6) and pip spread

then the swap free broker
1) company stability (since i'm investing a big amount)
a) years in the business
b) feedback/reputation
c) accreditation/regulation
2) pip spread
3) high leverage
4) low margin call
5) speed of transfer

for the currency pairs:
1) the spread of course
2) volatility
3) and amount of interest earned


feel free to add if anyone thinks of anything and i'll do the research...
Well, overall it seems promising... I would lsugggest you try with smaller account. Do test it for several month, or at leat one month. and do keep us updated. Because if you wont keep us updated, it can mean only 2 things: eather you succeeded and you dont want us to know , or you faild and dumped it

Good luck my friend!

PS. actually, if you do go for it, and it goes well, I suggest you not post on the forums - brokers occasionally visit these places. Especially most popular communities. cheers
  • #70
  • Nov 30, 2006 6:42am Nov 30, 2006 6:42am
Quoting Rezo
Well, overall it seems promising... I would lsugggest you try with smaller account. Do test it for several month, or at leat one month. and do keep us updated. Because if you wont keep us updated, it can mean only 2 things: eather you succeeded and you dont want us to know , or you faild and dumped it

Good luck my friend!

PS. actually, if you do go for it, and it goes well, I suggest you not post on the forums - brokers occasionally visit these places. Especially most popular communities. cheers
thanks rezo! i'll pm you or anyone who's interested in an update once it's up and running! hehehehe!
  • #71
  • Nov 30, 2006 12:31pm Nov 30, 2006 12:31pm
i love my bears! BEARS!!!!!
  • #72
  • Nov 30, 2006 11:24pm Nov 30, 2006 11:24pm
2% monthly poor investment u can make more by trading very easy @ 100k$
  • #73
  • Dec 1, 2006 3:58am Dec 1, 2006 3:58am
Quoting tar
2% monthly poor investment u can make more by trading very easy @ 100k$
thats the least you can earn, very conservative figure. you can earn 2.7% actually in USD/JPY, without any risk because of the hedging system. thats 32% a year. so your 100,000 dollars compounded after 5 years will be 400,746 dollars or after 20 years it will be $ 25,791,620. its like you are earning 1.2 Million dollars every year.. what do you think? you think its still poor investment?
  • #74
  • Dec 1, 2006 4:04am Dec 1, 2006 4:04am
and after 50 years..it will be 106 Billion Dollars..richer than Bill Gates!!! hehehehehe
  • #75
  • Dec 1, 2006 4:05am Dec 1, 2006 4:05am
Quoting titikokatiting
thats the least you can earn, very conservative figure. you can earn 2.7% actually in USD/JPY, without any risk because of the hedging system. thats 32% a year. so your 100,000 dollars compounded after 5 years will be 400,746 dollars or after 20 years it will be $ 25,791,620.
Don't forget to pay taxes. This reduces the compounding effect significantly. And what about inflation? How much is a dollar worth in 20 years? Nobody knows ...
  • #76
  • Dec 1, 2006 4:17am Dec 1, 2006 4:17am
for big investors 3% it is poor u can make more by trading and investing only give me your account password
  • #77
  • Dec 1, 2006 4:26am Dec 1, 2006 4:26am
Quoting Geldschlucker
Don't forget to pay taxes. This reduces the compounding effect significantly. And what about inflation? How much is a dollar worth in 20 years? Nobody knows ...
we dont pay taxes here like in US especialy from forex earnings=)
  • #78
  • Dec 1, 2006 11:32am Dec 1, 2006 11:32am
any suggestion, who's broker give the highest swap per day in USD/JPY?
  • #79
  • Dec 1, 2006 3:12pm Dec 1, 2006 3:12pm
someone mentioned a bbroker w 1 pip spread, which broker,

and how do u know they are trust worthy?

pm me if its bad to post the broker name here.
  • #80
  • Dec 2, 2006 11:49pm Dec 2, 2006 11:49pm
i pm you already, anyway, anyone knows whose the highest paying swap broker?
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