SwapSlap EA
After the COVID-19 pandemic, many countries implemented different monetary policies to support their economies. During this period, the gap between central bank interest rates increased significantly, making carry trade strategies more attractive in the forex market. I am not sure when it was more attractive before that. My FX journey started in 2018 :)
In 2023, I developed SwapSlap EA to systematically benefit from these interest rate differences. Since 2024, it has been used continuously on live accounts and has achieved quite high returns. During this process, some brokers tried to take various measures; some classified the strategy as arbitrage, and even two awards I won in competitions were canceled for this reason. The justification was that “risk-free trading” was being performed. However, no penalties were applied to the profits I obtained.
The system is not completely risk-free. The strategy is based on factors such as swap rates, interest rate differences, and price gaps (gap) that may occur at market openings. These conditions do not always occur, so there is no guarantee of continuous profit. Especially after 2025, the interest rate differences between currencies have gradually started to narrow. Despite this, opportunities can still arise under current market conditions.
In the past, when I used the strategy on Islamic (swap-free) accounts, I encountered some broker restrictions. Nowadays, due to the narrowing interest rate differences, the strategy has become profitable on standard accounts as well.
I have now decided to share SwapSlap EA with a wider audience. The goal is to provide a tool that can systematically take advantage of carry trade opportunities. The long-term sustainability of the strategy largely depends on interest rate differences between currencies remaining at meaningful levels in the markets.
Since swap values, spreads, and execution conditions may vary across different brokers, results may also differ.
Some brokers may not send any data for the first 30 minutes. In such cases, it eliminates the possibility of the first 30-minute trade closing with TP.
Wednesday 3x Swap Effect
In the forex market, most brokers apply a 3x swap cost on Wednesday night. The reason is that transactions in the spot market are settled with T+2 value, and the weekend interest is reflected on this day.
This situation can lead to noticeable behavior, especially in carry trade pairs like EUR/JPY. Due to the 3x swap cost on Wednesday, investors rebalance their positions. The tendency of carry trade investors to take more positions on the JPY side may cause the pair to become more prone to downward movement in the short term. Similar behavior can also be observed in other JPY-based pairs such as USD/JPY.
This effect theoretically applies to all pairs. However, in highly volatile instruments, the main motivation of investors is often price movement rather than interest yield. Therefore, the swap effect may be less noticeable in some pairs.
One of the pairs where the interest rate difference is very significant in trading decisions is USD/TRY. In this pair, the 3x swap is usually applied on Thursday night. If observed carefully, it can be seen that in many weeks the price opens approximately 20–30 kuruş higher on Friday morning. This is due to investors adjusting their positions according to the swap advantage driven by the high interest rate difference.
In theory, it is possible to try to profit by opening positions opposite to the swap direction. For example, taking a USD position in USD/TRY may provide a swap advantage. However, in practice, considering high swap costs and price movements, this approach often struggles to outperform the swap cost in the long term.
Therefore, in many cases, pairs like EUR/JPY, where swap costs are lower, offer a more efficient and manageable structure for carry trade strategies.
25% Higher TP
To increase profit potential, the expected Take Profit (TP) value for Wednesday has been increased by 25%. The reason is that swap-driven price movements can be more pronounced on this day.
However, in practice, the expected increase in profit may not occur at the same rate. This is because the 3x swap cost applied on Wednesday night may reduce part of the additional profit.
Therefore, even if the TP value is increased by 25%, it can be observed that the total profit increases more limited than expected. This is due to the nature of the strategy and the impact of swap costs.
Why Is It a Good Product for IB Users Expecting Rebates?
It can open a 0.32 lot trade on a $100 balance for just a single moment per day. If it trades approximately 15 days per month, it will contribute about 4.5 lots of monthly rebate.
From your clients who are expected to generate rebates;
4.5 lots rebate for $100
45 lots rebate for $1,000
450 lots rebate for $100,000
Calculated based on the best-case scenario.
Can It Be Used Together with Other EAs?
An input has been added to handle this automatically for you—you can set it to true. It is set to true by default.
If risk reduction is activated due to an open position, a notification will be sent to your mobile app. It will also log the reason in the journal section.
