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Swap Trading System

  • #21
  • Jan 13, 2007 1:05am Jan 13, 2007 1:05am
This picture is dollar peg chart (Omani Rial/Sultanate of Oman).People who hope they have received interest rate swap the equilibrium taught us USDOMR....
Swap rate(USDOMR long) was $0.29/10,000 dollar/day at my demo account.
Attached Image
Peace and Happiness through Prosperity (by Konosuke Matsushita)
  • #22
  • Jan 15, 2007 9:18am Jan 15, 2007 9:18am
Quoting Matsu
Hi howard,

PMed you the link. It is an inactive forum. I don't want to be viewed as trying to drum up membership/viewership for it. By the way, you don't need to sign up to view.

By the way, I started a demo in July 2006 with a $1000 account. The attached image shows when the account was started.


Regards,

Matsu
Hi Matsu

Is the increase in equity of USD147 solely related to swap interest?
Was the total of your positions equal to 10,000?
Was the account balance fluctuating a lot during the period when the positions were open? What percentage above and below 1000?

Also I checked the other forum but only found a thread on gbp/jpy and chf/jpy hedge, not the four pairs as you mentioned.

Thanks for clarifying the above points, if you wish to pm, by all means do it
Regards
  • #23
  • Jan 16, 2007 12:21am Jan 16, 2007 12:21am
Quoting howard

Is the increase in equity of USD147 solely related to swap interest?
Was the total of your positions equal to 10,000?
Was the account balance fluctuating a lot during the period when the positions were open? What percentage above and below 1000?
Hi howard,

The increase in equity was not solely from swap interest. You can see from the attached image that the daily interest would give you only about 8% a year.

I closed the positions when I saw profits, and reopened them in exactly the same ratio. I did this a few times.

The volatility was very low. I checked frequently initially but noticed that there was very little change. So I checked my account only after big moves in the component pairs, to ensure that my account was safe. I don't have all the records, but don't remember seeing anything more than -10% in the account. The max I have in my records is about -$42. I can't say that was the actual max though.

Because of this low volatility, and the fact that I had more than half of my margin available most of the time, I am now running a new demo, still on $1000, but with double the amount for each pairs.

Quoting howard

Also I checked the other forum but only found a thread on gbp/jpy and chf/jpy hedge, not the four pairs as you mentioned.
You should check under the title: "Hedging The Market. Winning being Flat in the Market."


Regards,

Matsu
Attached Image
  • #24
  • Jan 16, 2007 12:54am Jan 16, 2007 12:54am
Matsu, do you have a link to the article you refer to? I can't find it on a search.
TRADE FOR SWAP
  • #25
  • Jan 16, 2007 6:57am Jan 16, 2007 6:57am
Quoting cgldsmth
Matsu, do you have a link to the article you refer to? I can't find it on a search.

ALready PMed to you.


Matsu
  • #26
  • Jan 16, 2007 7:25am Jan 16, 2007 7:25am
Quoting Matsu
Hi howard,

The increase in equity was not solely from swap interest. You can see from the attached image that the daily interest would give you only about 8% a year.

I closed the positions when I saw profits, and reopened them in exactly the same ratio. I did this a few times.

The volatility was very low. I checked frequently initially but noticed that there was very little change. So I checked my account only after big moves in the component pairs, to ensure that my account was safe. I don't have all the records, but don't remember seeing anything more than -10% in the account. The max I have in my records is about -$42. I can't say that was the actual max though.

Because of this low volatility, and the fact that I had more than half of my margin available most of the time, I am now running a new demo, still on $1000, but with double the amount for each pairs.



You should check under the title: "Hedging The Market. Winning being Flat in the Market."


Regards,

Matsu
Hi Matsu

Thanks for the info, I have placed the four pairs on a demo and noted that there are $500 swings above and below the opening balance of 10,000.

This is a good strategy to trade these fluctuations but the problem is that we should be able to open and close the four pairs simultaneously which is not possible on MT4
Regards
  • #27
  • Jan 16, 2007 11:07pm Jan 16, 2007 11:07pm
Hi all

I always consider the swap in my trading buttttttt it's all in the placement.
Placeing trades on swap alone is risky business at best, the long term trend must be considered. A Lesson .......... I was going long after 10 pips a few months ago, usd/chf placed on one of my live accounts and after about 2.5 months yes months I closed it out at a 11 pip loss but I made over $700.00 in swap.

Did I get lucky? yes Big time!

the moral of the lesson the swap can get you out of a jam but it is no replacement for good technical analysis of your charts. Good Tradeing to you all.

absoPIPnLutely

fxScavenger
fxScavenger Arrogance is just Ignorance misspelled. abso-PIPn-lutely
  • #28
  • Jan 17, 2007 2:35am Jan 17, 2007 2:35am
Quoting fxScavenger
Hi all

I always consider the swap in my trading buttttttt it's all in the placement.
Placeing trades on swap alone is risky business at best, the long term trend must be considered. A Lesson .......... I was going long after 10 pips a few months ago, usd/chf placed on one of my live accounts and after about 2.5 months yes months I closed it out at a 11 pip loss but I made over $700.00 in swap.

Did I get lucky? yes Big time!

the moral of the lesson the swap can get you out of a jam but it is no replacement for good technical analysis of your charts. Good Tradeing to you all.

absoPIPnLutely

fxScavenger
You are quite right, this strategy should be used only as a side line.
Regards
  • #29
  • Jan 17, 2007 4:18am Jan 17, 2007 4:18am
Quoting howard
.

This is a good strategy to trade these fluctuations but the problem is that we should be able to open and close the four pairs simultaneously which is not possible on MT4
Hi howard,

My platform doesn't allow simultaneous closing either. I do so when market is quiet. Sometimes I would only close the profitable position/s.


Matsu
  • #30
  • Jan 18, 2007 8:18pm Jan 18, 2007 8:18pm
can u PM me the forum and the article that refers to this type of trade? how do they figure out what % and what pairs to trade?

thnks
  • #31
  • Jan 19, 2007 12:49pm Jan 19, 2007 12:49pm
Quoting Matsu
Here is a strategy I found at another forum



Matsu

Matsu,

Interesting strategy you described.

Can you PM me the link to the forum and article that explain the strategy?

Thank you.
  • #32
  • Edited Jan 21, 2007 1:52am Jan 20, 2007 10:49pm | Edited Jan 21, 2007 1:52am
Quoting howard
Hi Matsu

Thanks for the info, I have placed the four pairs on a demo and noted that there are $500 swings above and below the opening balance of 10,000.

This is a good strategy to trade these fluctuations but the problem is that we should be able to open and close the four pairs simultaneously which is not possible on MT4

Hi howard,

Perhaps one way to trade these fluctuations is to have one demo running parallel with the live account, as suggested in the original post. When the swing is positive all positions are closed and profits taken. When the demo account swings to negative new positions are open on the live account again until the swing becomes positive again. And the process is repeated.

Matsu
  • #33
  • Jan 21, 2007 11:40am Jan 21, 2007 11:40am
Hi Matsu

That may be the only way on MT4, however I have now been watching the aggregate fluctuations of the four pairs for some time, they are not totally neutral but GBP/JPY weighted; whenever GJ goes up the account balance goes up too and vice versa. Therefore the hedge is not risk free and is dependent on the direction of GJ, albeit on a lesser degree, that is to say the risk is much lower than trading GJ on its own.
Regards
  • #34
  • Edited 5:57pm Jan 21, 2007 5:16pm | Edited 5:57pm
Quoting howard
Hi Matsu

Thanks for the info, I have placed the four pairs on a demo and noted that there are $500 swings above and below the opening balance of 10,000.

This is a good strategy to trade these fluctuations but the problem is that we should be able to open and close the four pairs simultaneously which is not possible on MT4
Yes it is, I will put something together for you.. just give me a few
  • #35
  • Edited 5:56pm Jan 21, 2007 5:19pm | Edited 5:56pm
Here is the quick close script. just double click on it and it will close everything at once.

Each of these does a slightly different thing as the name suggests.

They go in the script folder.
Attached File(s)
File Type: mq4 Close all open and pending orders.mq4   1 KB | 673 downloads
File Type: mq4 Close all open positions.mq4   1 KB | 728 downloads
File Type: mq4 Close all pending orders.mq4   1 KB | 587 downloads
  • #36
  • Jan 21, 2007 5:35pm Jan 21, 2007 5:35pm
Hi,

I have tested those "close all" scripts on the MT4 demo (NF) but it gives me an "error 4109". Anyone knows if NF doesn't allow multiple automatic closing of positions?

Thank you in advance!
  • #37
  • Jan 21, 2007 5:39pm Jan 21, 2007 5:39pm
Here is the opening script I just wrote. Just input your number of lots for each one and press ok

This a a rapid fire script tha stockwet wrote for me and then I have modified it.

In regards to North Finance, sounds like you need a different broker if you are going to test the method. It all works fine for me.
Attached File(s)
File Type: mq4 Flat Hedge.mq4   2 KB | 851 downloads
  • #38
  • Jan 21, 2007 5:51pm Jan 21, 2007 5:51pm
Quoting howard
Hi Matsu

That may be the only way on MT4, however I have now been watching the aggregate fluctuations of the four pairs for some time, they are not totally neutral but GBP/JPY weighted; whenever GJ goes up the account balance goes up too and vice versa. Therefore the hedge is not risk free and is dependent on the direction of GJ, albeit on a lesser degree, that is to say the risk is much lower than trading GJ on its own.

Hi howard,

You are quite right.

I am currently running a demo consisting of the following:

L 5100 EURGBP
S 5600 EURUSD
L 4600 GBPJPY
S 4700 USDJPY

The attached chart shows the net exposure on this demo.


Regards,

Matsu
Attached Image
  • #39
  • Jan 21, 2007 6:04pm Jan 21, 2007 6:04pm
Ahh another carry trade thread. Must be time to long the Yen.
  • #40
  • Jan 21, 2007 6:22pm Jan 21, 2007 6:22pm
Just a note, I do not know if this type of trade works, I simply wanted to offer the script to enter the trades simultaneously... LOL

Good luck post how things turn out.
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