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Cash & Carry (The "Perfect" Hedge) Open Thread Discussions

  • #41
  • Edited 4:36pm Jan 11, 2006 4:22pm | Edited 4:36pm
Some of you have suggested to me privatly, that it is better to trade this with a basket and dilute the interest in exchange for stable UPL.

If you take two or three pair to accomplish this with with 2 or3 minis...you can average the interest to see what you new net interest may be.

You then can take the percentage off of the AUD/JPY to equal the baskets yield.

Compare the two in a game account to see the difference in UPL.

Try this:

1 mini Long AUD/JPY 251.88% (1 mini)
1 mini Long EUR/AUD -183.85% (1 mini)

This is just a quick example, use the interest cow sheet and knock yourself out!


Compare to

1 mini AUD/JPY +251.88% (3 minis) try reducing this to get better UPL`

Michael B.
  • #42
  • Jan 11, 2006 5:39pm Jan 11, 2006 5:39pm
First image, Oanda capture of interest being earned on 10,000 units AUD/JPY with a 2,000 demo account.

http://www.picturevista.com/fxpics/10000_aud_jpy.gif

Second image is 44,000 units AUD/JPY (Approximately 1/3 of account value) to see how long it will trade before Margin Call.

http://www.picturevista.com/fxpics/44000_aud_jpy.gif

Third image is 10,000 units LONG of AUD/JPY and EUR/JPY and SHORT of AUD/EUR to attempt a reduction of UPL with positive interest. I'm just guessing here, I've no idea if it will work, so please let me know what you think.

http://www.picturevista.com/fxpics/b...ur_aud_jpy.gif

I added the current price breakdown to show the short (which I believe is a POSITIVE interest contributor) is running against the longs in hopes of reducing UPL.

Looking forward to your thoughts and comments.

Cet.
  • #43
  • Jan 11, 2006 7:56pm Jan 11, 2006 7:56pm
Another day, another interest gain ! so far so good. 4 minis.
  • #44
  • Jan 11, 2006 8:07pm Jan 11, 2006 8:07pm
re : hedging audjpy. you will find w audjpy , short euraud , and eurjpy , exposure on yen way too big. i put on another short chfjpy 15k units makes yen exposure much better - at expense of small carrying charge. testing now...
  • #45
  • Jan 11, 2006 9:12pm Jan 11, 2006 9:12pm
I hope I am not moving too fast....I did not get much feedback on the red line green line post.

Now lets get giddy on the gridding concept....

If your "averaging down" whats to keep you from putting a 30 pip target on? and just re-entering as it goes up/down? This would put some money to your balance.

Michael B.
  • #46
  • Jan 12, 2006 3:15pm Jan 12, 2006 3:15pm
Michael,

Thanks for sharing your ideas with us. This method of trading look very interesting, but is very different to what the average trader is use to see. Could you please try to go a little slower and use more visuals if possible.

Thanks, kester
  • #47
  • Jan 12, 2006 3:19pm Jan 12, 2006 3:19pm
Quoting kester_albo
Michael,

Thanks for sharing your ideas with us. This method of trading look very interesting, but is very different to what the average trader is use to see. Could you please try to go a little slower and use more visuals if possible.

Thanks, kester
kester please see attention everyone in the general discussion thread. if you have any questions please contact me. thanks, jim
  • #48
  • Jan 19, 2006 2:43pm Jan 19, 2006 2:43pm
Would it be just as good to use InterbankFX for the buy position? They pay interest also on this long position. I already have an acct there with money in it.
  • #49
  • Jan 20, 2006 7:05am Jan 20, 2006 7:05am
of course - just make sure you check interest payments made daily. you may also wish to try gbpjpy - pays even more - BUT very volatile.
  • #50
  • Jan 20, 2006 12:00pm Jan 20, 2006 12:00pm
InterbankFX pays interest 5 days per week, with triple on Wednesdays. And they do pay on any size position, even fractional micro-lots.


JohnFX
  • #51
  • Jan 21, 2006 4:31pm Jan 21, 2006 4:31pm
I have left the hedge material up for a short time after michaels departure. it will be removed early next week. jim
  • #52
  • Jan 21, 2006 9:43pm Jan 21, 2006 9:43pm
Jim,

Sorry, but you could please explain your post about Michael’s departure? Your post is the first I heard about it. Does this mean Michael is not part of the PF anymore? What happened? Does this mean the “Perfect” Hedge is a bust? …a “no go”? Or can it possibly work?



If ElectricSavant is not around anymore, can anyone else tell me why the AUD/JPY instead of the NZD/JPY? I really don’t understand how all this works, but if it’s based on the currency that pays the most interest versus the currency that pays the least, then it is my understanding that the AUD is 5.5% while the NZD is 7.25%



-Confused Canuck
  • #53
  • Jan 21, 2006 9:53pm Jan 21, 2006 9:53pm
Quoting kwalberta
Jim,

Sorry, but you could please explain your post about Michael’s departure? Your post is the first I heard about it. Does this mean Michael is not part of the PF anymore? What happened? Does this mean the “Perfect” Hedge is a bust? …a “no go”? Or can it possibly work?



If ElectricSavant is not around anymore, can anyone else tell me why the AUD/JPY instead of the NZD/JPY? I really don’t understand how all this works, but if it’s based on the currency that pays the most interest versus the currency that pays the least, then it is my understanding that the AUD is 5.5% while the NZD is 7.25%



-Confused Canuck
Have been searching the past 1/2 hour trying to figure out where and when ES has went as well...

Hey Jim, I also just got a good kick out of re-reading your 100 Pips a month thread that started back in Aug/September...you, dial and fij seemed to really get things going with each other and were having a lot of fun, I hope this stuff is keeping its luster in your eye like it was back then...could just tell you and dial were on a roll with each other...thx for all you do...hope to get an answer on the ES thing and sure hope the rest of you are around for the years to come...I've already told my wife when the trading you're teaching me comes to full fruition, I'm gonna have to get you a big Texas sized truck or something just to say thx...CHEVY or course!! LOL

drjoe
  • #54
  • Jan 21, 2006 9:53pm Jan 21, 2006 9:53pm
Quoting kwalberta
Jim,

Sorry, but you could please explain your post about Michael’s departure? Your post is the first I heard about it. Does this mean Michael is not part of the PF anymore? What happened? Does this mean the “Perfect” Hedge is a bust? …a “no go”? Or can it possibly work?



If ElectricSavant is not around anymore, can anyone else tell me why the AUD/JPY instead of the NZD/JPY? I really don’t understand how all this works, but if it’s based on the currency that pays the most interest versus the currency that pays the least, then it is my understanding that the AUD is 5.5% while the NZD is 7.25%



-Confused Canuck

i posted a notice in the general discussion thread under attention everyone around two weeks ago. michael and i had a disagreement over how long he intended to stay here among other things and i was concerned about people getting involved and then him leaving suddenly. i just could not allow those that intended to follow his stuff continue to pay money while knowing that his stay would be short. that would have been against every thing i have tried to do here. i am sorry if this has caused any confusion for any of you but i felt it best to do the right thing. jim
  • #55
  • Jan 21, 2006 9:59pm Jan 21, 2006 9:59pm
Quoting james16
i posted a notice in the general discussion thread under attention everyone around two weeks ago. michael and i had a disagreement over how long he intended to stay here among other things and i was concerned about people getting involved and then him leaving suddenly. i just could not allow those that intended to follow his stuff continue to pay money while knowing that his stay would be short. that would have been against every thing i have tried to do here. i am sorry if this has caused any confusion for any of you but i felt it best to do the right thing. jim
must have been typing at the same time you were...just refreshed and got your message...thx for the info and your concern to continue to give us the best...jim, your so good I think I might just send you 99mo just for that fact...your heart is right and I am amazed at what you are doing...all I can say is WOW and THX again...

drjoe
  • #56
  • Jan 21, 2006 10:57pm Jan 21, 2006 10:57pm
Quoting drjoe4x
must have been typing at the same time you were...just refreshed and got your message...thx for the info and your concern to continue to give us the best...jim, your so good I think I might just send you 99mo just for that fact...your heart is right and I am amazed at what you are doing...all I can say is WOW and THX again...

drjoe
drjoe your just about my favorite and its not just cause you say nice things all the time. its your attitude that always makes me smile. i learned a long time ago that the old saying garbage in garbage out was backwards. its garbage out garbage in that ruled my life until i figured out that what i send out comes back. when i started living my life from a standpoint of you reap what you sow things changed for me. it seems like two lives i have led. the bad one which lasted until i was around 28 and the other one that has lasted to this day. i dont plan on going back. for those interested in such subjects check out eckhart tolle and dr. wayne dyer among many others that helped me learn to stay in the present moment and watch what i send out instead of staying lost in thought all the time. 99.9 percent of the world lives thier entire lives lost like this and its a form of insanity. learning to come out of it is a million times harder than this game we call trading but its worth the effort. jim
  • #57
  • Jan 22, 2006 9:57am Jan 22, 2006 9:57am
I am still in a perfect hedge position , using audjpy , and gbpjpy. yes nzdjpy pays more , but more volatile still - also dont think you can hedge that pair in fxcm - not offered i think. good luck !
  • #58
  • Jan 22, 2006 4:29pm Jan 22, 2006 4:29pm
Quoting james16
I have left the hedge material up for a short time after michaels departure. it will be removed early next week. jim
Please can you leave it until the end of the week as I can't print until Wednesday soonest. Thanks.
  • #59
  • Jan 22, 2006 5:49pm Jan 22, 2006 5:49pm
Quoting Ladybird
Please can you leave it until the end of the week as I can't print until Wednesday soonest. Thanks.
sure ladybird.
  • #60
  • Oct 8, 2008 5:48am Oct 8, 2008 5:48am
I am seeing this for the first time, and looks like it moved here from elsewhere? Is all the material and info here still valid?
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