Stimulus, The 300 pip swing was experienced in 3 months period. Nothing can be predicted about the future though, but correlations tables do support this strategy to some extent.
- #24
- Jun 19, 2007 7:23am Jun 19, 2007 7:23am
- Joined Oct 2006 | Status: Trader | 2,271 Posts
Carry trades are not to be measured like this, they are long term, "buy and hold" strategies. It shouldn't matter if they're up one day and down the next, as you are making $15.00 per day on interest, which is approximately $450.00 per month. If you held this for 4 months you would be up by approximately $1800.00, which would probably mitigate any downswings.
So don't worry if they are up and down on any given day, just hold it for a few months/years and compound your earnings and enjoy the profit.
So don't worry if they are up and down on any given day, just hold it for a few months/years and compound your earnings and enjoy the profit.
Yes .I think its working in some way.I have bought a lot of each pair EUR/USD,USD/JPY,USD/CHF,GBP/USD on Sunday evening,when markets are closed.Monday morning it was +64 pips,in evening -40pips.Tuesday was up up to +74 pips,but in the evening it was again in -45pips.Today I could see it was +180pips.I am trying that on demo trading right now.I dont think I would try that on live account,too scary.
...here is this stategy; in the direction of a trend, positon EUR/USD(B),
and position USD/CHF(S), then hedge them both, so will have EUR/USD(S)
and USD/CHF(B), so you have a ...+,-,+,- = 0, but it gets better, once the
market moves up in your favor, cancel out the positives, and you are left
with just the negatives, and with careful margins, the market reverses and
and then you are set for a take profit...can anybody agree?
I understand you are suggesting taking both long and short trades on EU and UC at the same time. In other words, ending up initially with 4 positions:
Long EU and UC
Short EU and UC
With all due respect I see absolutely no logic in opening two opposing positions on the same pair. You end up with NO POSITION at all and pay TWICE THE SPREAD. You would achieve a better result if you were to wait until the expected reversal and then simply go short. After all, in effect that's what you're doing anyway. Except you're paying two spreads
"The market will rally from this or lower levels"
- #27
- Jul 2, 2008 11:32pm Jul 2, 2008 11:32pm
- Joined Nov 2005 | Status: EURUSD Quant FREAK | 3,197 Posts
hi the latest post on the thread is a year old... it's dead
I understand you are suggesting taking both long and short trades on EU and UC at the same time. In other words, ending up initially with 4 positions:
Long EU and UC
Short EU and UC
With all due respect I see absolutely no logic in opening two opposing positions on the same pair. You end up with NO POSITION at all and pay TWICE THE SPREAD. You would achieve a better result if you were to wait until the expected reversal and then simply go short. After all, in effect that's what you're doing anyway. Except you're paying two spreads
