DislikedAnd you're still trading these pairs in only the swap positive direction? I'm still on the hunt for an ideal basket.Ignored
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DislikedHi Guys,
Firstly, thanks to Dreamliner for this excellent thread. My question...
Can someone kindly help to confirm whether I have to go long or short on Oanda for USD/JPY to collect the positive swap interest.
Thank You.
VincentIgnored
DislikedI trade thru IBFX, and I need to go long to get the positive swap interest.
WaltIgnored
Dislikedjones247,
Thanks for the reply. I guess it is to go long for the +ve swap interest.Ignored
DislikedWhen it comes to bid -vs- ask the easyest what to guess-timate the interest value is to use the one that is not in your favour i.e the one that makes you less moneyIgnored
Dislikedgoldcourse,
Just type in some values to the calculator.
http://fxtrade.oanda.com/tools/fxcal...lculator.shtml
take a look at the interest rates page below, you should be able to work out what pays what...
http://fxtrade.oanda.com/tools/stati...st_rates.shtml
When it comes to bid -vs- ask the easyest what to guess-timate the interest value is to use the one that is not in your favour i.e the one that makes you less moneyIgnored
DislikedIndeed.
You are paid BID interest (lower one) on the currency on which you are LONG (for example, on USD/JPY long, you are being LONG USD - SHORT JPY) and you pay ASK interest (higher one) on the currency you are being SHORT.
The difference is the positive or negative swap, so if the interest you're getting on the "long" currency is higher than the "short" one, swap will be positive.
As per the table:
LONG USDJPY
LONG USD BID 1.95
SHORT JPY ASK 0.80
difference: 1.95 - 0.80 = 1.15 positive swap on LONG USDJPY
SHORT USDJPY
LONG JPY BID 0.25
SHORT USD ASK 2.50
difference: 0.25 - 2.50 = -2.25 NEGATIVE swap on SHORT USDJPY
The inverse occurs when the interest of the FIRST currency is lower than the interest of the SECOND currency, as is the case in EURGBP or USDCAD.Ignored
DislikedAnd you're still trading these pairs in only the swap positive direction? I'm still on the hunt for an ideal basket.Ignored
DislikedGreetings all,
I'm having some poeple PM me asking if I still trade this system, the answer is yes. I have been trading this, modifying it slightly to reduce drawdown, and still very successful at it, averaging about 6% per month, which would be over 100% per year when compounding.
So just wanted to check in and say I still love trading this way, it's the most successful I've ever been at trading. Up until this method I was excellent at picking tops and bottoms: I would buy at the very top and sell at the very bottom. Now I average in and don't care which way it goes and know that I'm still profiting.
Thanks all.
MikeIgnored
DislikedHi Dreamliner,
I would be appreciative if you could share with me the enhancements you have made to your great trading strategy...especially with respect to reducing drawdown.
Thanks,
BobIgnored
DislikedDreamliner,
Would you consider capping your drawdown and increasing the amount of entries? For example, if the market moves 500 pips against you, then close all positions and absorb the losses. Further, instead of buying only when the market moves 200 pips down, buy everytime the market moves 30 pips down.
your thoughts...
WaltIgnored
DislikedWalt, in doing this you are increasing your risk, and increasing the chance of getting above the average quicker. One is bad, the other is good.
For instance, if you purchase every 30 instead of 200, you are risking more chances of "danglers" and thereby increasing your margin usage and risk of blowing the account if the market does not retrace in time to get above your average.
But you are also lowering your average price quicker, thereby making it possible to get out of the trade with a smaller retrace.
So it is really what you are most comfortable with. Personally I would not like to cap drawdown and get out at a huge loss. I would rather develop a method of limiting drawdown initially, which is what I am currently working on and have found a good way to do this. I'm putting it together now.Ignored