Super Carry Trade Trading System

19 September

* 40 positions open
* Average 194.331
* Bought today at 192.910 (140 pips from average)
* $1694.39 Interest from swap
* Drawdown 6.90%

GBP lost against USD (massive bailout of finance). Yen lost big against USD.

19 September - update

* 0 positions open
* Sold all at 195.527 (120 pips above average position)
* $1694.39 Interest from swap
* Realised profit $5712.62
Total profit $7326.64

400 pip spike in 3 hours closed my position.

To perfect the strategy:

1. Looking at hedge with 0% swap provider. Crownfx but did not hear very good storeis about them.
2. Looking at broker with high interest, higher leverage and no minimum order limit. Pretty hard as these are parameters that brokers make their money.
   1. Currently oanda pays 4.05% on GDP/JPY with 1:50 leverage and no minimum order.
   2. ODL has 1:100 leverage with 2.45% on swap and no minimum order, 6pip spread and you can use metatrader. With similar lotsize the interest would be less but the drawdown as well. With a double lotsize you would get slightly more interest with a same risk profile for margin call.

So help me out here with finding the perfect brokers for this strategy.

I commend your faith in this system when a lot of people bailed. Well done. I don't have any recommendations for brokers.

SOLDINTIME.... What was your % return or profit with your latest results. I just came back to this thread yesterday. I like the idea and want to be patient and try to make it work.

All help and ideas would be welcomed.

Well started the 17th of August. So about 7.5% this month. By removing the limit order ladders from the original strategy I had to find a selling point higher than the average position of all my orders. My selling target was at average plus 100 pips. I was glad to sell out as I had almost 20% of my account in trades.

With fewer positions I might sell out at average plus 200 pips. I am revising my strategy over the weekend to lower my drawdown.

great job, let me know if I can do anything to help. i had a great week, but I still think most of it was LUCK as I am still refining my strategy and or systems from the ideas here

I have applied this strategy to my LIVE account in Oanda with some twist,
since this strategy is quite similar with my original strategy the difference is using market order and buy order ,

I can;t really give exact return, but based on the % return, last week, just GBP/JPY return, is around 2.4% for a week, this week i'll compute in few days time .


My strategy :
1. always put buy order 10--20 pips above market price ,
2. TP ==always ==22pips
3. buy order always at xxx.11/33/55/77/99/
4. some time when the trend is strong, i'll open another set at xxx.00/22/44/66/88
(dun ask me why 22 or 11 , somehow i just like this type of number, and easier to enter through keyboard)
5. I always use 0.5% of NAV, but i used a fixed value unit,
6. I checked the market several times a day , so whenever there;s downtrend, I'll add more buy orders.
7. You may say this is crazy as there will be lot of "danglers" , yes, u're right. But I capitalised these strategy on UPTREND or RANGE market, so during this 2 market ,I'll try to maximize my profit , so the balance grow quite fast . While in downtrend , need to stay alive. so if have EA, it should profit with all "uptrend",
8. This straregy mustn;t be greedy by open large lot, the large lot will kill the account in downtrend .

9. Currently, I'm applying this to EUR/JPY and EUR/USD and just started on EUR/TRY.

Thanks for sharing .
Comment+feedback are welcome. thanks

This strategy will not work with a MT4 broker, as the rounding effect will kill your account.

I commend you for surviving soldintime, but the first entries, in this last unwind actually started the last 2 days of July, about 1000 pips higher than your initial entry, and the only method that might have survived this unwind from the beginning, is if you didn't place another order until at least 300 pips below the averaged entry. As each day, for about the 1st 5 or 6 trading days, it stayed right around the 100 pip level, so you entered each day, which is what killed my demo account right around the 192 mark.

I placed 2 .5% trades each day, with tp 13, and next 1 trade at each 20 pips, so only 1 dangler a day, unless price went straight down from the entry, which did happen.

So, in my observation, the only way this will work, is use Oanda (more accurate trades, because of no minimum, and higher interest paid), and only open 1 trade per day (if you choose to do the ladder, make sure you take into account the spread, so only 1 dangler a day), and only if over 300 pips from your averaged in price.

What do you mean with rounding?

Still finding the right broker with 1:100 leverage and good interest payments.

I have setup 8 sub accounts with OANDA all funded with 100K USD except the original GBP/JPY strategy which has 107K in it. All have 1:50 leverage.

AUD/USD - buy 2 0.5% lots
AUD/JPY - buy 2 0.5% lots
EUR/USD - buy 2 0.5% lots
EUR/JPY - buy 2 0.5% lots
NZD/USD - buy 2 0.5% lots
GBP/USD - buy 2 0.5% lots
GBP/JPY - buy 2 0.5% lots - account with 107K
GBP/JPY (account 2) buy 2 0.33% lots - to limit the drawdown.

I will try to report once a week.

alpari?

soldintime:

May I ask a question regarding your position sizing? You state that you take two lots each worth 0.5% of NAV. Why not one lot worth 1% NAV or 4 lots worth 0.25% NAV each? Is there a reason for the two lots rather than simply sizing by % NAV?

DrZ

Hey, I have been following this thread with great interest, I have read the entire thread and the orignal one on oanda forum. I was just curious how people trading this method have been doing lately with the huge fall in GJ, and other xxx/jpy pairs.

The thread has gone pretty quiet, did most get a margin call or are people still trading this?

Dreamliner, still around?

If EUR, GBP, AUD don;t go up or XXX/JPY pair don;t go up, many will die soon, that INLCLUDE ME !

hmm, out of curiosity, how often do you average down? and how many pairs do you have in your basket?

Hey sold...
Are you going to report anytime soon? I was appreciating your loyalty to this system. Thanks.
Bob

Why not just trade 5 minutes before EST and close it after 2 Minutes EST....most of the time..the market picks up in those hours...you could easily cover the 8 PIPS loss in spread most of the time

Just got back from holiday. Well the massive unwinding of AU, NZ has effected the accounts. (10% drop in one day for the aussie). Some will blow up in the next few days.

1. AUD/JPY - 73% drawdown on 20 trades. Averaged in when difference was 100 pips.
2. AUD/USD - 73% drawdown on 24 trades. Averaged in when difference was 100 pips.
3. EUR/JPY - 31% drawdown on 20 trades. Averaged in when difference was 100 pips.
4. EUR/USD - 19% drawdown on 24 trades. Averaged in when difference was 100 pips.
5. GBP/USD - 14% drawdown on 20 trades. Averaged in when difference was 100 pips.
6. NZD/USD - 31% drawdown on 18 trades. Averaged in when difference was 100 pips.
7. GBP/JPY - 39% drawdown on 24 trades. Averaged in when difference was 200 pips.
8. GBP/JPY (0.33% positions instead of 0.5%). 29% drawdown on 24 trades. Averaged in when difference was 200 pips.

So AUD is toast. I think these accounts will blow up soon. Other pairs still have some hope.

Quick update.

Both AUD accounts have blown up. The AUD drop was sharp and brutal.
All other accounts still alive and existing max drawdown about 40%. I will update once more accounts have blown or I have returned to profit.

This strategy needs only 5 mins of work each day so I continue to show it as a learning exercise for the forex community. However Carry trade is dead with interest rates unwinding and this strategy is not for me.

I am focussing my time on finding EAs out there that have continued to be profitable during the last few months of volatile currency movements.

My first GBP/JPY account has blown up all other account show 50-80% drawdown. This will be my last post on this thread. Carry trade is dead.