Hi all,
starting today I will do some carry trade testing.
With carry trading you look for currencies who have low borrowing costs and high yielders. In my case I will use the AUD/JPY due to fundamental reasons.
I think this pair will rocket to 100 this year. My approach is simple. I have a $10k demo account and will place a simple long grid above the current price with a spacing of 20 pips and a TP of 25 pips. Position size is 0.5:1 per entry, so 5,000 units each. I won't use stops and reload this grid if it goes down.
That way I collect both positive interest and earn some money from the up movement. The main risk is carry trade unwinding.
Charts will follow.
You can watch the system here:
http://www.myfxbook.com/members/Xaron/oanda-carry/12815
starting today I will do some carry trade testing.
With carry trading you look for currencies who have low borrowing costs and high yielders. In my case I will use the AUD/JPY due to fundamental reasons.
I think this pair will rocket to 100 this year. My approach is simple. I have a $10k demo account and will place a simple long grid above the current price with a spacing of 20 pips and a TP of 25 pips. Position size is 0.5:1 per entry, so 5,000 units each. I won't use stops and reload this grid if it goes down.
That way I collect both positive interest and earn some money from the up movement. The main risk is carry trade unwinding.
Charts will follow.
You can watch the system here:
http://www.myfxbook.com/members/Xaron/oanda-carry/12815