Hi All 
I'd like to share with you this interesting long-term strategy that I found on another forum about swap trading.
It's really simple since doesn't require any knowledge about market,indicators,tecnichal or fundamental analisys of any kind
Idea behind this system is to take gain of broker positive swap interest and trade only in that direction.
Infact as you should know , when we carry for long time a position we can see in our account the swap value that could be positive or negative depending on broker rules. For example Fastbrokers get a positive interest (paid to us) for GBPJPY if we buy and a negative (paid to them) on sell side.
So our system will place trade accordingly only to positive interest paid by our broker for that pair that in the case of FB will be the buy side for GBPJPY.
Here's the simple rules :
1) Open a Daily chart and choose the pair that get best positive interest paid by your broker (a good one could be GBPJPY)
2) Without know anything about forex , simply open a position on positive side using 1% of your equity. Now we have only to take care about this entry price.
3) If price will go against us for a X fixed amount of pips (where X could be 100 or 200 pips) from the entry price then we enter another position based on 1% of actual equity.
4) Step 3) will be repeated until price will go against us adding a position every time it will go down of X pips from entry price.
5) If price will go in our direction of X pips then we close all positions opened, and cash the gain due to swap interest and pips
6) After all positions are closed , we iterate again step 2)
As you can see using this system our account will grow slowly but steadly because we will gain from both the positive swap and the pips when we close all positions.
Infact if after first trade is placed , the price will go in our direction then we will cash the 100 (or 200) pips plus spread interest depending on how much days order was opened. On other hand if price will go against us we will add a new position so to increase our equity acount due to spread gain and wait for price to go back to entry price.
In both case we will gain
Any comments, ideas, constructive critics to improve it will be really appreciated
Example to better understand the swap system :
http://img442.imageshack.us/img442/1...psystemqo7.jpg
In attachment you can find a little EA that simulate this system
I'd like to share with you this interesting long-term strategy that I found on another forum about swap trading.
It's really simple since doesn't require any knowledge about market,indicators,tecnichal or fundamental analisys of any kind
Idea behind this system is to take gain of broker positive swap interest and trade only in that direction.
Infact as you should know , when we carry for long time a position we can see in our account the swap value that could be positive or negative depending on broker rules. For example Fastbrokers get a positive interest (paid to us) for GBPJPY if we buy and a negative (paid to them) on sell side.
So our system will place trade accordingly only to positive interest paid by our broker for that pair that in the case of FB will be the buy side for GBPJPY.
Here's the simple rules :
1) Open a Daily chart and choose the pair that get best positive interest paid by your broker (a good one could be GBPJPY)
2) Without know anything about forex , simply open a position on positive side using 1% of your equity. Now we have only to take care about this entry price.
3) If price will go against us for a X fixed amount of pips (where X could be 100 or 200 pips) from the entry price then we enter another position based on 1% of actual equity.
4) Step 3) will be repeated until price will go against us adding a position every time it will go down of X pips from entry price.
5) If price will go in our direction of X pips then we close all positions opened, and cash the gain due to swap interest and pips
6) After all positions are closed , we iterate again step 2)
As you can see using this system our account will grow slowly but steadly because we will gain from both the positive swap and the pips when we close all positions.
Infact if after first trade is placed , the price will go in our direction then we will cash the 100 (or 200) pips plus spread interest depending on how much days order was opened. On other hand if price will go against us we will add a new position so to increase our equity acount due to spread gain and wait for price to go back to entry price.
In both case we will gain
Any comments, ideas, constructive critics to improve it will be really appreciated
Example to better understand the swap system :
http://img442.imageshack.us/img442/1...psystemqo7.jpg
In attachment you can find a little EA that simulate this system
: Look at the yearly range of a pair like GBP/JPY (and don't look just the last year but for ex the last 10years).
