Trial pure carry trades - how will it turn out????

[RahmanSL]

Yesterday, Friday 9/May/2014, I transferred AUD500 to refund a live trading account.

Broker: ICMarkets(AUD)
Currency: Australian Dollar
Deposit: AUD500.00
Leverage: 1:500
Account opened under an IB and so received discounted commission charges on every trade.

Attachment screenshot attached for viewing and I will update on progress as necessary.

As shown in trading account screenshot, two 0.05 size "sell" positions on USD/ZAR have already been opened and have received daily AUD1.29 daily positive swaps per position x 2 positions= AUD2.58 ......which is 0.52% over total deposit

If I leave just these 2 positions (6 more pending orders) running for one year, total daily positive swaps will accumulate to AUD941.70 after 365 days..........this will be equal to 88.34% increase over deposit.

Wonder which bank on this third rock from the sun pays such interest rates?????????

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If at any time that profit/loss + accumulated swaps = more than 1 month swap rate (i.e AUD1.29 x 30 days=AUD38.70), I will close out the position(s) to increase account size.
I will put in pending order(s) to short the USD/ZAR again at the previous or slightly higher levels and have one month for the pending order(s) to be triggered.
This system should "fast track" account size which will not have to take a full year to realize 88.34% increase over deposit money.

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Weekly Updates:

Starting account date: 9/May/2014
Total trading days to date (30/May/2014): 16 days

Starting account size: AUD500.00
Total account balance to date(30/May/2014): AUD1,185.48
Percentage increase to date: 137.10%
Total Open Trades running: 16 ....Type: USD/ZAR shorts
Total Daily Swap Value: +AUD14.24.....Total Accumulated Daily Swap Value if left running for 365 days (1 year): AUD5,197.60

 

[RahmanSL]

Reserved for Updates: Ending 8/July/2014

 

[RahmanSL]

Reserved for updates3: Ending 7/Sept/2014

 

[RahmanSL]

Reserved for updates4: Ending 6/Nov/2014

 

[RahmanSL]

Reserved for updates5: Ending 5/Jan/2015

 

[RahmanSL]

Reserved for updates6: Ending 6/Mar/2015

 

[RahmanSL]

Reserved for updates7: Ending 5/May/2015

 

[LoRio]

hmm.have you considered finding a corelated pair with swaps on the long?
this way you may (technically) lock the swaps and build a money generator.or a swap cookie.

 

[RahmanSL]

Hello LoRio, thank you for your comment & input which are, as always, much appreciated

As far as I know, no such pair exist as there will always be negative swap to the positive swap for every currency pairs.
It would, of course, be ideal if we can received positive swaps on both long & short positions on any correlated currency pair....but even if there is such a possibility, I supposed the swap rates will be miniscule and hardly worth the long waiting period.

I chose USD/ZAR for my "carry trades" for the simple reason that it's the highest positive swap rates given....next is EUR/ZAR.

Based on previous experiment on a Demo account, after keeping the position running for one month, the accumulated positive swaps is sufficient to offset any more future losses on the running position which, unless something drastic happen, will be next to impossible to lose from there onwards.

If I have more than 5 positions opened and all of them go into some profits, I will close out two positions taken at the lower levels and maintain the top three positions for the long haul...however, when the price goes back up, I will re-open two more trades at the higher levels......and if I can repeat this process a number of times, I will end up with some very strong positions to run for as long as I like.

Well, it should be interesting to see the results in a couple months time

 

[LoRio]

Hello LoRio, thank you for your comment & input which are, as always, much appreciated

As far as I know, no such pair exist as there will always be negative swap to the positive swap for every currency pairs.
It would, of course, be ideal if we can received positive swaps on both long & short positions on any correlated currency pair....but even if there is such a possibility, I supposed the swap rates will be miniscule and hardly worth the long waiting period.

I chose USD/ZAR for my "carry trades" for the simple reason that it's the highest positive swap rates given....next is EUR/ZAR.

Based on previous experiment on a Demo account, after keeping the position running for one month, the accumulated positive swaps is sufficient to offset any more future losses on the running position which, unless something drastic happen, will be next to impossible to lose from there onwards.

If I have more than 5 positions opened and all of them go into some profits, I will close out two positions taken at the lower levels and maintain the top three positions for the long haul...however, when the price goes back up, I will re-open two more trades at the higher levels......and if I can repeat this process a number of times, I will end up with some very strong positions to run for as long as I like.

Well, it should be interesting to see the results in a couple months time

You have some Grid system incorporated in your approach as well ?
Good.
Also look into yen , golden week or something , 9x swaps (lemme search further)
I had some notes on that , back in 2012 for shorting DAX and going long Silver , there were positive swaps on long silver and on dax shorts and germany was correlated with silver for a while.
Back when AUD,NZD,GBP,EUR,Gold,Silver,Dax and Nikkei (i think) were correlated