Carry Backet w/ Jacko's AH | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Trading Aussie Jacko Style 728 replies

The Anti Hedging Rule By Jacko 41 replies

MY MA crossover (Jacko AH hybrid) 9 replies

Jacko's P&P Trend Trading Method 73 replies

Carry Backet w/ Jacko's AH

  • #1
  • First Post: Edited 4:55am Sep 17, 2007 4:38am | Edited 4:55am
I'll be the first to say that carry baskets are not my thing.

However, I hope some brilliant minds can take this ides and run with it.

Here's the idea:

BUY 1 lot GBPJPY
BUY 1 lot CHFJPY

If I were doing this seriously, I'd get the proper ratio between the two. It might be more like 1 lot GBPJPY vs. 2.1 lots CHFJPY or something like that. The pairs aren't what's important.... those can be determined later.

Anyway, a drawdown always occurs when the correlation deteriorates. What I was thinking was to have a predetermined SL, and reenter after:

1) the difference in the hedge drops an additional 50 pips, then comes back to 100 pip
2) if not #1, the difference closes back to 50 pips

The idea is to cut the drawdown before it gets too bad, and then reenter as the DD closes back to parity. W/ Jacko, you are AHing to save bad trades. W/ this idea, you are preventing your account being blown by unwinding.

It's a guessing game (as all forex) but what do you guys think?
  • #2
  • Sep 17, 2007 6:43am Sep 17, 2007 6:43am
Quoting tdion
I'll be the first to say that carry baskets are not my thing.

However, I hope some brilliant minds can take this ides and run with it.

Here's the idea:

BUY 1 lot GBPJPY
BUY 1 lot CHFJPY

If I were doing this seriously, I'd get the proper ratio between the two. It might be more like 1 lot GBPJPY vs. 2.1 lots CHFJPY or something like that. The pairs aren't what's important.... those can be determined later.

Anyway, a drawdown always occurs when the correlation deteriorates. What I was thinking was to have a predetermined SL, and reenter after:

1) the difference in the hedge drops an additional 50 pips, then comes back to 100 pip
2) if not #1, the difference closes back to 50 pips

The idea is to cut the drawdown before it gets too bad, and then reenter as the DD closes back to parity. W/ Jacko, you are AHing to save bad trades. W/ this idea, you are preventing your account being blown by unwinding.

It's a guessing game (as all forex) but what do you guys think?

Hi tdion,

This looks like a straight trade for (or against) the JPY.

Should it be:
BUY 1 lot GBPJPY
SELL 1 lot CHFJPY.

??????????


.
  • #3
  • Sep 17, 2007 7:02am Sep 17, 2007 7:02am
Well that's kindof the idea. The primary goal is to collect the daily rollover premium of GBPJPY, which is much higher than the negative rollover of the swissy.

Your long and short are cancelling each other out as you collect swap.

When they seperate (lose correlation) then you use AH.

Hell, it's just an idea.

THANKS FOR STOPPING BY JACKO!
  • #4
  • Sep 17, 2007 7:21am Sep 17, 2007 7:21am
Quoting tdion
Well that's kindof the idea. The primary goal is to collect the daily rollover premium of GBPJPY, which is much higher than the negative rollover of the swissy.

Your long and short are cancelling each other out as you collect swap.

When they seperate (lose correlation) then you use AH.

Hell, it's just an idea.

THANKS FOR STOPPING BY JACKO!

Hi Tdion,

This far, far, far too complicated for me.....

Especially just to collect rollover premium differentials...

I suggest that you use your towering intellect to find an easier way to make money.


.
  • #5
  • Jan 5, 2008 4:37pm Jan 5, 2008 4:37pm
Quoting tdion
I'll be the first to say that carry baskets are not my thing.

However, I hope some brilliant minds can take this ides and run with it.

Here's the idea:

BUY 1 lot GBPJPY
BUY 1 lot CHFJPY

If I were doing this seriously, I'd get the proper ratio between the two. It might be more like 1 lot GBPJPY vs. 2.1 lots CHFJPY or something like that. The pairs aren't what's important.... those can be determined later.

Anyway, a drawdown always occurs when the correlation deteriorates. What I was thinking was to have a predetermined SL, and reenter after:

1) the difference in the hedge drops an additional 50 pips, then comes back to 100 pip
2) if not #1, the difference closes back to 50 pips

The idea is to cut the drawdown before it gets too bad, and then reenter as the DD closes back to parity. W/ Jacko, you are AHing to save bad trades. W/ this idea, you are preventing your account being blown by unwinding.

It's a guessing game (as all forex) but what do you guys think?
It wouldnt be worth doing this unless you were buying 50 lots and selling a related number of chfjpy. But why bother, why not just make the right trading decision and just trade? This is a hedge play for the big boys!!!
Nobody can be told what The Matrix is. You'll have to see it yourself.
  • #6
  • Jan 6, 2008 2:47am Jan 6, 2008 2:47am
if you were to buy gbp/jpy and sell chf/jpy or buy chf/jpy, whatever you do
what happens if suddenly gbp devalues or even chf you would have to have a serious amount of margin to stay in
  • #7
  • Jan 9, 2008 6:07pm Jan 9, 2008 6:07pm
Quoting croesesFX
if you were to buy gbp/jpy and sell chf/jpy or buy chf/jpy, whatever you do
what happens if suddenly gbp devalues or even chf you would have to have a serious amount of margin to stay in


If you buy g/j and sell c/j, you are long g/c.

and

If you buy g/j and buy c/j, you are long 1g and 1c, and short 2j.

Why trade in such a complicated manner?

Stick with the majors... better yet, trade the E/D only...farrrr less drama. IMO

Dan
  • #8
  • Jan 10, 2008 12:26am Jan 10, 2008 12:26am
Quoting dcline
If you buy g/j and sell c/j, you are long g/c.

and

If you buy g/j and buy c/j, you are long 1g and 1c, and short 2j.

Why trade in such a complicated manner?

Stick with the majors... better yet, trade the E/D only...farrrr less drama. IMO

Dan
why dont you try the above trades seee how they go.
the point you are missing, you are long g/j and g/c and short c/j
right what happens if the gbp (as I said before) devalues or theres a diaster in the UK you will be stuffed with 2 long gbp, you need to hedge by having 1 long and 1 short of the same currency, so you need to trade with 4 pairs to hedge all, I`m currently doing this for the last 6 months and earning on the overnight swaps its a no brainer
  • #9
  • Jan 21, 2008 9:37am Jan 21, 2008 9:37am
Hello tdion,
Forget 2 pairs. Minimal 3 to perfect Hedge...or 4..until 5 . We trade with hedge and managed accounts with this system (Ea or manualy)and after long time studyng, i can say with certanly to you that 2 pairs doesnt work very well.


Best Regards,
Marcelo Marques
  • #10
  • Aug 16, 2008 8:02am Aug 16, 2008 8:02am
Quoting tdion
I'll be the first to say that carry baskets are not my thing.

However, I hope some brilliant minds can take this ides and run with it.

Here's the idea:

BUY 1 lot GBPJPY
BUY 1 lot CHFJPY

If I were doing this seriously, I'd get the proper ratio between the two. It might be more like 1 lot GBPJPY vs. 2.1 lots CHFJPY or something like that. The pairs aren't what's important.... those can be determined later.

Anyway, a drawdown always occurs when the correlation deteriorates. What I was thinking was to have a predetermined SL, and reenter after:

1) the difference in the hedge drops an additional 50 pips, then comes back to 100 pip
2) if not #1, the difference closes back to 50 pips

The idea is to cut the drawdown before it gets too bad, and then reenter as the DD closes back to parity. W/ Jacko, you are AHing to save bad trades. W/ this idea, you are preventing your account being blown by unwinding.

It's a guessing game (as all forex) but what do you guys think?
Hi Tom....
I was looking through the forum and stumbled onto this thread and thought I would toss in my 2 pips. Not too sure about the brilliant mind part, maybe just idle ramblings....LOL
Anyway I have started a basket (which hasn't really been my prefered system either) of 10 pairs and am trading them the same way I trade the EUR/USD, so far for the month of august it is up 20% which I have to admit I really wasn't expecting but is pleasantly acceptable, also I should add this is being tested in a demo account at Oanda, My EUR/USD account is live trading.
The pairs in the basket are.....
EUR/USD
GBP/JPY
GBP/USD
USD/CHF
USD/JPY
USD/CAD
AUD/USD
EUR/CHF
EUR/JPY
NZD/USD
Also these are far from optimize as to the balanceing of spread ratios regarding order size and SL/TP .....
each is entered with 2% of account balance and a 100 pip SL (yeah I know not the best in terms of conservative MM but hey its only a demo so I can pretend to have deep pockets..., TP is at the end of the daily candle with reentry at the new daily candle, I may in the future move the SL instead of opening and closing each day.


anyway it is still early in the forward testing and will endeavor to keep it rolling for several months, I think the results should be interesting.
Same Whore .... Different Dress
  • #11
  • Last Post: Aug 16, 2008 9:47am Aug 16, 2008 9:47am
I started doing the same 1-2 weeks ago.
LONG 1 Lot EUR/USD
LONG 1.5-2 Lot USD/CHF
Both give positiv Swap (around 8.8 USD a day) and are as we all know
inverse correlated. Max. DD till today was 60 Pips.
Which is not bad with the recent Euro weakness.
And no I'm not trading EUR/CHF otherwise my DD would have been around 200 Pips....
0 traders viewing now