Keeping track of swaps

My trading system involves 1D CHART ONLY AND RSI B.B for entry exit and stop losses 200 pips+ and 2.1 3.1 & 4.1 risk reward.

I'm getting ready to pull the trigger on a 2025 small live account.

Should I be concerned about swap with a trading style like this... I am having difficulties in expressing & measuring the quantity of swap +&-.

can I over look swap all together? is there a calculator you use?

Thanks!

Yes, absolutely, based on the criteria of daily timeframe and profit targets of many hundreds of pips, I would assume holding trades for many weeks and months, in which case, SWAPS will greatly affect your bottom line.

I too, am interested in SWAPS, but as I am a day trader, I use it as a filtering mechanism.

Let me explain, for example, using the JPY pairs, due to the interest rate differential, the Carry Trade was born. Using that as my theory, why wouldn't the larger players, mainly banks I guess, hold a long-term view of accumulating positions in pairs that would yield them extra profits? This fits with the usual retracements seen, e.g. a pair is driven down to a buying level where they step in, proving the old Sell High, Buy Low mantra, although that was for stocks in the old days, I think.

The first thing I had to do was record the SWAPS to screen for the possible preferred direction of price the banks would be trading:



As I said, I use SWAPS as a filter; other day trading criteria are, strength, market sessions, ADR, plus other various indicators to show previous horizontal levels, for example on the chart - Asia session high breakout, stuff like that.

This chart contains my list of pairs for Long Trades Only. This may or may not be a good idea, but it sure reduces my analysis, my focus is simply waiting for those retracement days, and then on board for the reversals. Note this is also an Inside Day, with more US news to be wary of later this week. Another drawback for me is that many moves, especially those important day trading reversals, begin at US session which is my bedtime in Australia.



The highlighted green indicator is called Show Swap for MT4 at mql.com

Same pair on Tradingview with my list of 16 long candidates, with sessions, pretty green indicators, helps me considering an entry as I'm only looking for longs, and thoughts? Be interesting to see the direction of pairs you trade for longer term.

Tracking Swaps is synonymous with tracking interest rates, and with the recent cuts to major currencies, I am keenly watching for any changes to swap rates.





Keen observers will see where the safe haven currencies fit in!

I hope the OP is having a good sleep in USA, sorry for spamming your thread, Bill.

Let's get a 3rd party opinion, here is GROK -

what is currently best carry trade major currencies ONLY

Currently, some of the best carry trade opportunities among major currencies can be assessed based on interest rate differentials and market stability. Here's an overview based on recent trends:

 

1. AUD/JPY: This pair has traditionally been a favorite for carry traders due to the significant interest rate differential between the high-yielding Australian dollar (AUD) and the low-yielding Japanese yen (JPY). Australia's interest rates are generally higher than Japan's, making it attractive for carry trades. However, the effectiveness of this strategy can be influenced by economic conditions in both countries and global market sentiment.
2. NZD/JPY: Similar to AUD/JPY, the New Zealand dollar (NZD) against the Japanese yen offers a carry trade opportunity due to the interest rate differential. New Zealand typically has higher interest rates than Japan, which can result in positive swap payments for traders holding this position long-term. However, like AUD/JPY, this pair's viability is contingent on economic stability and market sentiment.
3. USD/JPY: While not as lucrative as the AUD/JPY or NZD/JPY in terms of interest rate differential, the U.S. dollar (USD) against the Japanese yen can still offer carry trade opportunities, particularly when U.S. interest rates are higher than Japan's. The USD is also a more liquid currency, which might appeal to traders looking for stability alongside carry returns.

Keep in mind that carry trades involve borrowing in a currency with a low interest rate to invest in a currency with a higher interest rate, but they are also subject to exchange rate risks. If the funding currency (the one borrowed) appreciates against the carry currency (the one invested in), the strategy can result in losses. Current market conditions, including central bank policies, economic indicators, and global risk sentiment, should be closely monitored before engaging in carry trades.

Also, remember that carry trade strategies are best suited for environments where market volatility is low, as sudden shifts in currency valuations can lead to rapid unwinding of carry positions. Therefore, always consider the broader economic context and geopolitical risks when evaluating carry trade opportunities.

When trading on a daily chart with a system focused on RSI and Bollinger Bands, swap rates can indeed impact your profitability over time, especially if you hold trades for extended periods, as your profit targets are quite large (200 pips+). Swap is the interest you earn or pay for holding a position overnight, and it varies based on the currency pair, the direction of your trade, and the interest rate differential between the currencies involved.
If you're trading pairs with a significant interest rate differential, you might earn positive swap, but if the rates are unfavorable, you could incur a negative swap, which can eat into your profits, especially when holding trades for weeks or months. For a strategy with such long holding periods, it’s essential to factor swap costs into your risk-reward calculation.
You can’t overlook swap altogether, as it could impact your long-term results, especially in a small account. To monitor swaps effectively, you can use swap calculators available on most trading platforms or websites like Myfxbook. These calculators give you a clear idea of the swap costs or gains for different pairs based on your position size and holding time.
I recommend tracking swap rates and considering them when selecting pairs for long-term trades, as they could make a big difference to your bottom line.

AUD/CHF is currently paying well

Made this awhile ago. It uses everything in your market watch for Symbol list.