The Strategy Of Carry – Trade

15.12.2009
36
0
0
trade Rules



By placing an entry order, make sure of two things:



1. The deal is set to get the difference in interest rates. This means that a speculator buys a currency with a higher interest rate. In this case, the deal is long on the pound sterling and brings 5.25 %.



2. Place the buy order only after the candle is closed. Entrance after breaking the upper channel line ensures that the line of the flag was broken actually. By logging in before closing above the line of the channel, You risk to take for a break out possible market noise. This may leave the trader in an unfavorable position, since a consolidation may continues.



Taking into account both rules, we place an entry on the close or slightly lower at 248.77. Taking risk traders are likely to keep the carry trade until the end of the movement. However, there is a more conservative strategy, which is triggered more often when the initial goal is halfway before checkout. Given a breakthrough in 248.50 and half the distance of the forecast 324 pips, the initial target should be set at 250.12, with the corresponding stop five pips below the low of the candle.
 
15.12.2009
36
0
0
Impuls carry trade in the market



Now let's consider step by step the process of using traders the carry trade momentum in the market. Figure 3 shows us the perfect opportunity to pair new Zealand dollar / Japanese yen. After the turn at the bottom, which occurred on 9-11 July 2007, there was a rise, to raise currency for the next 48 hours until an intermediate vertex at the Point A.

Figure 3: After a strong decline, NZDJPY rises again

Our actions consist of the following stages (figure 4):

1. Noticing the consolidation, swipe first the upper line of the channel, and parallel to it is the bottom that will give us the borders of the flag.

2. If there are signs of a breakthrough this top of the line, measure the distance from the base of the shaft to the top. In this case, the lower end of the shaft is located at the level of 93.81, and its top - 95.74. This gives the trader the potential to 193 pips after the break of the upper line of the channel.

3. Once there was a confirmed break of the line of the flag, open the candle close below or. In this case, a break occurs approximately 95.40, and the entrance outmoded closing session at 95.46 (Point C). Subsequently placed its stop loss five pips below the session low of 95.37. Ultimately, the position of the well within the normal risk parameters, as is risking 14 pips to get 193 pips.

4. The exposed primary and final goal. Based on the total anticipated movement in 193 pips, we get half the distance of 96 pips (193 pips / 2). So, the initial goal is set at 96.42 (Point B).

5. Set trailing stop. Once achieved the initial goal, the position size should be reduced by half and protect the remaining position trailing stop or moving the stop to the entry price (or breakeven point).

By the way, the initial goal in our example was reached just before a small pullback NZD/JPY. Subsequently, the position makes a profit because the price remains above the entrance.

Figure 4: Trade setup on NZD/JPY

Flags and pennants can facilitate profitable trading in the currency markets, helping to capture the prevailing momentum. In addition, applying strict money management rules, as well as accumulated experience and discipline, a trader can increase returns on the General portfolio due to the difference in interest rates.
 

igor85manager

New member
14.03.2011
3
0
0
what's the minimum depot for this strategy and what is the min lot size for the interest test, who can tell?
 

Yurik

New member
01.03.2010
1
0
0
You need to calculate what the depot has withstood the maximum expected drawdown. Another good use of averaging. Of making money then you can not only swap but also on volatility. Although I recently conducted a test on history and not really pleased with the results.

If the market over time to return to the same point which started a trade, then everything will be in the black. But this moment may have to wait a very very long time.

One right here, plus strategy be when the market is moving in the direction in which the swaps are positive. In General, I think it is foolish to just buy in the direction of positive swap and wait. There need to be more creative, we need to choose and use small stock. That would be in addition to income from the swap was a big probability of disappearance in the trend.
 

Serious

New member
01.10.2010
2
0
0
Since I am green, not seasoned, it can not be said. But in my opinion it is nonsense (IMHO) to build your strategy on positive swaps. Even of 1.77 for the year is about 500 points. And that You have such income?
 

kingtreid

New member
29.01.2010
8
0
0
Probably garbage, but this method works! For example, a couple with a negative swap will not last long to trade I, and pairs with high swap also can be traded intraday, focusing on higher timeframe. If the trend on the Daily chart or the weekly match, if intra-day signals are not practiced leave looking for higher trend and keep. This strategy is probably not one of the most profitable, but ...
 

ppvic

New member
30.05.2010
5
0
0
But what is bad to have a paragraph 1.77 daily at the cost of the item from$ 100 — doing nothing?


Well I say Open two accounts. One with swap, the other without, open in different directions, and time transfer between accounts.

Stable 1.77 points per day — this is the Grail for big Deposit...
 

kingtreid

New member
29.01.2010
8
0
0
It is unlikely that this can be done within the same DC, and if to pour from one DC to another, the Commission will eat not only dripping swap))
 

ppvic

New member
30.05.2010
5
0
0
And You actually tried?


Let's say You have two deposits up to 100,000. One in Dcst, the second as expected. Work a lot not more than one million. 1 point in this case will equal about $100.

And?
 

Serious

New member
01.10.2010
2
0
0
ppvic;724135 сказал(а):
Well, what's wrong with having 1.77 daily item at the cost of the item from$ 100 — doing nothing?


Well, a very large Deposit this can be considered as an option. And that if you opened poorly and went into a deep disadvantage, then sit and hope that sooner or later the price will come back. And she had maybe a year not to return.

And with our deposits when 500 points is 500 cents or 50 dollars it's something serious. Open several such transactions, has bound himself hand and foot, and.... Sitting in a deep drawdown and angrily watching fly past a lot of great opportunities as to participate in this can't - Deposit busy these transactions.
 

ais79

New member
04.07.2011
1
0
0
Serious;726204 сказал(а):
ppvic;724135 сказал(а):
Well, what's wrong with having 1.77 daily item at the cost of the item from$ 100 — doing nothing?





Well, a very large Deposit this can be considered as an option. And that if you opened poorly and went into a deep disadvantage, then sit and hope that sooner or later the price will come back. And she had maybe a year not to return.

And with our deposits when 500 points is 500 cents or 50 dollars it's something serious. Open several such transactions, has bound himself hand and foot, and.... Sitting in a deep drawdown and angrily watching fly past a lot of great opportunities as to participate in this can't - Deposit busy these transactions.



not just Rial and is not interested. we wash all of the typed mind about trade and not about how to pour and make money. so I am personally against that, better learn to trade. instead of trying to pour
 

voinG

New member
10.02.2011
2
0
0
Swap size depends on account type and transaction volume. Where do the points?
 

Луна

New member
18.10.2010
14
0
0
View the table of swaps in that company which You are dealing. They are all given in points.

Open the terminal MT4 - market watch - Symbols - Properties - type of swap.
 

voinG

New member
10.02.2011
2
0
0
the value of the swap, ie for example: 1 lot EUR/USD, then the price of 1 PIP for this position will be equal to 1 U.S. dollar, the value of the swap of the table must be multiplied by the price of the item and this will be the size of a swap for transferring your position through the night
 

vch

New member
31.07.2011
1
0
0
In different DC swap is accounted for in different ways, and a points and dollars. In General, the difference in interest rates, divided by the number of days in a year. Some (many) DC swap still takes a Commission (fee) for the transfer.
 

Экстремал

New member
26.06.2011
1
0
0
Good day!

All successful transactions !


Looked at the swaps on the exotic, yet found the Mach swap +5,45,

on Delilah observed like a flat,

I want to try Monday and Tuesday to open position,

with still not working, maybe that's why the spread for it seems to me so wild, as much as 120 PP,

it can be used to this spread
 

Луна

New member
18.10.2010
14
0
0
The spread is not the most critical parameter. It is usually much more than kompensiruet the big cost item on the instrument. And sometimes volatility handsome.
 

Alexey Kulakov

New member
31.08.2011
34
0
0
A good strategy of trading in the market. Often it is used by those who are already long time works in the market. The only thing I disagree with is the fact that it is not necessary to set stop loss. Stop loss hedge funds are set only if you work without leverage. Always set a stop loss, preferably at a historic low for the currency, so you should be good prostakova and profit margins will be lower.
 

astudent

New member
31.10.2011
2
0
0
As I worked on this strategy and initially we went a good profit, but then when the market turned and launched a long my Deposit could not resist... So I agree with you that stop must always be that you would not have thrown away from the market...