hi mate well done
24hrs after this pool has earned $468.5 in favorable swap. . .while dd has diminished...
to answer your question 40k max dd is a bit biased on my side
looking at previous data. . .this egy wouldn't have endured 2014- Ruble devaluation
2015 - CHF meltdown
2015 ZaR, TRY, MXN crush. . .shorts were killed. . .unless you additionally take long bets on their stockmarkets. .
In General. . .good idea. . .but be cautious with black swans
just a hedge fund can pull off this type of carry egy
Thanks for your reply, Avibe
Again, please correct me if I am incorrect, but it appears I did read this properly. You are floating a 16k loss on your presentation after running this egy for less than 2 weeks. (I am assuming this time since you said you earn 1k per week at swaps, and thus far you've earned 1.4k) What makes you think that your risk is limited to 40k over 2 decades?
Hello Jason sorry for submitting half a film....
Those are available trades so 16k is floating pnl thus far...
am analyzing $100k demo...1:500 leverage...
my concept is maximum dd in 1-2 years will be involving 30-40k...
meanwhile annually earning 52k in swaps....by year 2. . .rake in $104 000 in profits. . .enough to pay any floating reduction during liquidation . .
Risk is when central banks change rates . . .remember LTCM in 1999?
Hi Avibe,
To describe, you've been analyzing this concept for a bit over a week, so far you've earned $1422.68 at swaps and dropped $16,334.58. Have I read this correctly? What's your cutoff point if your losses make worse?
this is the way you play the sport. . .minimum time interval 1-2 decades of available trades
you produce this cocktail of positive swaps. . .case in point....this pool earns $1000 per week...$52000 annually
also hedging any dolllar moves with a mixture of usd buys and usd market to prevent portfolio overhung
DD with this egy is 30 percent
*testing concept on demonion
Hello partner cant see that a major profit from the attempt sell swap , however zar and Mexican will be considerably bigger sell swap
Hi Amenlo,
While I do not have a recommendation for you, I was curious about your approach and was wondering in the event that you'd be willing to share your thoughts. If not, I know.
In order to earn swap (rollover interest) on USD/TRY, you have to short the pair. Carry trading is a long-term trading egy, and if you examine the monthly chart for USD/TRY it has been trending upwards for the past several years.
Any swap you earn could be more than offset by reductions on your short position, if the price continues greater. Do you believe the uptrend in USD/TRY will undo soon? Also, I am curious how you'd apply 100:1 leverage to a lengthy term carry trading egy. In my experience, carry traders often use much less leverage.