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

[RahmanSL]

Hi LIz ...hope all going well for you & the family

In "carry trade" it doesn't really matter whether the Profit/Loss shows a profit....if the opened positions can be left to run for a month without going into margin call, the accumulative daily swaps will, from that point onwards, absorb any losses on the profit/loss and the total profit/loss should in fact show a profit and the equity much more than balance.

But, of course, it would be good if the USD/ZAR drops and, if the profit/loss is more than one month's worth of accumulative positive swaps, I will out these positions to increase account size. When price goes back up, I will re-open some more trade positions and repeat the whole process.

Alternatively, I can simple leave the opened positions to run forever to receive daily positive swaps

 

[RahmanSL]

...oppphs...over traded AGAIN and account went into slight margin call....had to "borrow" AUD500 from another account in a real hurry to prop-up account and keep it safe....so, starting account is now AUD1,000 instead of AUD500

 

[RahmanSL]

Updates:

Well, this is an excellent example of over-trading, greed, and impatience to get those millions

After making good profits, I over-traded and got my account into trouble with low free margin and in danger of margin call and account wipe-out.
I "borrowed" AUD1k from one of my other account to shore-up equity, believing that would be sufficient to prevent margin call and forced foreclosure of losing trades.
Well, I was dead wrong, because when I got tied-up and kept busy with my project works and had no free time to monitor my trading account, it went into margin call and some large losing positions were forcibly closed.

So, ending Friday, 6/June/2014, my account landed up with a loss of AUD388.73 over total deposit of AUD1,500
Four 0.02 short trades on USD/ZAR are left running getting AUD2.04 daily positive swaps which will realize AUD744.60 in accumulative positive swaps if left to run for one year.

 

[RahmanSL]

Updates:

I crawled my way back up by opening and closing some positions.
Also, I deposited, via Moneybookers, some cash rebates which I received from another account totally AUD791.05 (after deduction of charges) and increasing total deposits to AUD2,291.05

Ending Friday, 13/June/2014, I managed to increase my account moderately with AUD28.84 profits over total deposit..i.e 1.26%.........free margin are at healthy 8414.74%

Six 0.02 short trades on USD/ZAR are left running, BUT I am not sure (and too lazy to find out) getting how much total daily positive swaps

Total accumulative positive swaps to date: AUD33.54 which will certainly realize a pile of clams in accumulative positive swaps if left to run for one year

I will try to close out all USD/ZAR positions as they go into some profits and replace them with higher paying positive swap EUR/ZAR

 

[LoRio]

Nice Work , And if the euro tumbles.

 

[RahmanSL]

If the Euro tumbles, I will be happy as a clam

.....and if the USD tumbles along with the Euro, I will be even more happy as...well..two clams

 

[LoRio]

Japan wont be

 

[RahmanSL]

Japan won't be happy?....well, bad for their export but cheaper imports of essentials......and to keep them happy, I will send them some clams for sushi

 

[RahmanSL]

UPDATES:

Trading has been good to me in this and my other account

Ending Friday, 21/June/2014, my account has increased moderately with 24.42% profits over total deposit........free margin are at healthy 1,909.13%

A mixture of short trades on USD/ZAR, EUR/ZAR, and GDB/NOK are left running, receiving total AUD5.69 daily positive swaps and, if left to run for 1 year, will total AUD2,076.85 in positive accumulated swaps.
I would have closed out those trades that went into some profits, but I was sleeping when that happened

This is no longer "pure carry-trades" strategy and I am considering abandoning this thread to merge my two trading accounts back into one because I am trading both accounts with the same strategy......i.e going in short on the high side on high yielding daily positive swap pairs (in order of preferences: EUR/ZAR, USD/ZAR, EUR/TRY, USD/TRY, EUR/NOK, EUR/PLN, EUR/SEK, and GBD/NOK)....closing out trade if it go into some decent profit, reopening short trade if price go back up, and leaving ALL losing trades to run to receive daily positive swaps.


**NB: For those who are looking for, and is happy with 8-20% annual returns on their deposit, this is the strategy to use.
Determine the trade lot size required to realized your target percentage returns in daily positive swap value, wait for a fairly good entry point, place your trade (or trades), close your computer and leave the trade (trades) to run for the next 365 days. BUT remember to log-in to become active (depending on your broker's T&C) at least once every 3 months or else your account might be closed/suspended due to none activities over extended period of time.

 

[RahmanSL]

The attachment screenshot is of one of my practice demo account which shows a good example of what "carry trades" strategy would look like.

The equity is higher than balance and I will allow the trades (all long on AUD/USD) to run until target TP at 0.94800 and another at 0.95000.
So, it could be a long wait but ALL running positions are accumulating daily positive swaps.


The second screenshot of another of my practice account shows long positions for silver which are accumulating daily negative swaps.
I just want to know/ am curious whether this type of trading strategy (i.e incurring daily negative swaps) is viable for metals and that, when TP is finally triggered, how much percentage profits the account can realized.