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

[RahmanSL]

It's better to limit to trading two currency pairs at any one time....maybe max 4, but not advisable cause it can become confusing and chances of over-trading can become deadly to the account.

I only keep highest swap paying currencies pairs on my charts and wait for any one of them to become viable for taking positions...it could be days/weeks/month, and I just have to be patient.

We cannot trade "carry trades" like day/swing/scalp trading....after all, it's the daily positive swaps that is of primary importance....but like in above 1st post, if profit/loss + accumulated swaps equal at least one month of swap value, then I might consider closing out the position.

 

[Joh]

Sounds fantastic

Have 2 Questions what will you do when the trend changes like a with the AU? Let's say a buy in the A/U at 1.05 and it drops to 0.93 in 10 days -you would need to add to your $500 or blow the account.

Or with the E/Y which paid swap then the trend changed, 3 brokers changed the swap from paying to charging and the E/Y went up from 93.50 to 140 area of course we can wait for the trend to change again, but i would like some clearer guide lines as for me two 0.01 positions for the $500 would be safer. Have i got that right?

 

[RahmanSL]

Don't take positions blindly and in large lot sizes which your account cannot handle any initial losses .....and have some funds ready for any emergency top-up of account.

If your broker change swap rates indiscriminately, then you should not be trading in the fist place because you have not even bother to find out what type of broker you going with.....i.e a Market Maker or even a bucketshop broker.

And if you cannot afford to loss the money, then don't trade until you have accumulated sufficient capital to trade comfortably.

 

[LoRio]

every wednesday swaps are 3x.
Can also try to hunt the swap hunters.

 

[RahmanSL]

"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 miscalculated and prematurely closed both positions just before they hit 30 days accumulative swap value but still realized total profits of AUD77.37 with the profits.....this is a 15.47% profit over deposit.

I have preset some pending orders to be triggered within the next 30 days....failing which I might take a couple positions at the lower levels.

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Yes I too have read somewhere of the x9 swaps for the Yen, but never quite got round to research that...probably because swap for Yen pairs don't pay very much.

Anywhere, I am not sure of the swap rates for the pairs you mentioned above as I know the USD/ZAR has the highest swap rates and, at times, the pair do get pretty active.

 

[ilearn2t]

Hello RahmanSL

How about positive swap on two currency pair with both having a positively correlation on your broker.

That way you can "hedge" your bets. As the percentages must favor your method.

Example:

A/B "buy" & C/D "sell", in theory both should move together more often than against.

So if both go northward you win "buy+swap" + lose "sell-swap", southward is the same outcome in reverse, you win "sell+swap" + lose "buy-swap".

I can't use this method on my own journal as my broker has only one positive swap value against 5 negative swap valves on my 3 currency pair.

Good luck
Liz

 

[RahmanSL]

Hi Liz...thank you very much for your input and ideas/suggestions for "carry trades" strategy.
Yes, your logic makes perfect sense for long term "carry trades" plan because once in place these trades can be left to run forever

However, due to much2 smaller swap rates, that will be too slow for "impatience" me.....and the main reason I am going with the USD/ZAR & EUR/ZAR pairs is cause that's the highest swap rates that I know of.

Well, anywhere, I am only investing AUD500 for this trial "carry trades" strategy and we shall ALL see what the account size will become next year

 

[LoRio]

+1 Liz.

So are these moves prior to the swap?does volatility pickup on wednesday around 5 EST?

Why not wait for resistance levels before the swap and short at that level .
Essentially what you do is capture the swap (A) , capture the move caused by all those going short at resistance for the swap .(on wednesdays only)

 

[psaTrading]

I Was waiting for this moment, to go short on Dax.

 

[psaTrading]

And today we had a very narrow day!

Which you all a nice weekend.
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Silva Trading EN | Financial Markets
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