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Carry Trade

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niloufar mohamadi
1538
niloufar mohamadi 2013.05.30 06:28 

Hi 

Is there anyone who has to deal with the carry Trade ?

https://www.mql5.com/en/articles/491 

Statistical Carry Trade Strategy
Statistical Carry Trade Strategy
  • 2012.10.15
  • Ruslan Lunev
  • www.mql5.com
An algorithm of statistical protection of open positive swap positions from unwanted price movements. This article features a variant of the carry trade protection strategy that allows to compensate for potential risk of the price movement in the direction opposite to that of the open position.
tonioni73
116
tonioni73 2013.05.30 19:41  
niloufar:

Hi 

Is there anyone who has to deal with the carry Trade ?

https://www.mql5.com/en/articles/491 

Hello Nilo hope this helps ,

What is Carry Trade?

Did you know there is a trading system that can make money if price stayed exactly the same for long periods of time?

Well there is and it's one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe!

It's called the "Carry Trade"


A carry trade involves borrowing or selling a financial instrument with a low interest rate, then using it to purchase a financial instrument with a higher interest rate.

While you are paying the low interest rate on the financial instrument you borrowed/sold, you are collecting higher interest on the financial instrument you purchased. Thus your profit is the money you collect from the interest rate differential.

For example:

Let's say you go to a bank and borrow $10,000. Their lending fee is 1% of the $10,000 every year.

With that borrowed money, you turn around and purchase a $10,000 bond that pays 5% a year.

What's your profit?

Anyone?

You got it! It's 4% a year! The difference between interest rates!


By now you're probably thinking, "That doesn't sound as exciting or profitable as catching swings in the market."

However, when you apply it to the spot forex market, with its higher leverage and daily interest payments, sitting back and watching your account grow daily can get pretty sexy.

To give you an idea, a 3% interest rate differential becomes 60% annual interest a year on an account that is 20 times leveraged!

In this section, we will discuss how carry trades work, when they will work, and when they will NOT work.

We will also tackle risk aversion (WTH is that?!? Don't worry, like we said, we'll be talking more about it later).



What is Carry Trade?
What is Carry Trade?
  • www.babypips.com
Did you know there is a trading system that can make money if price stayed exactly the same for long periods of time? Well there is and it’s one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe! It’s called the “Carry Trade”. A carry trade involves borrowing or selling...
Alain Verleyen
Moderator
30775
Alain Verleyen 2013.05.30 19:51  
tonioni73:

Please don't copy and paste other site content. Try to formulate it with your words, otherwise the link is enough.
niloufar mohamadi
1538
niloufar mohamadi 2013.05.31 05:57  
tonioni73:
Hello Nilo hope this helps ,

What is Carry Trade?

Did you know there is a trading system that can make money if price stayed exactly the same for long periods of time?

Well there is and it's one the most popular ways of making money by many of the biggest and baddest money manager mamajamas in the financial universe!

It's called the "Carry Trade"


A carry trade involves borrowing or selling a financial instrument with a low interest rate, then using it to purchase a financial instrument with a higher interest rate.

While you are paying the low interest rate on the financial instrument you borrowed/sold, you are collecting higher interest on the financial instrument you purchased. Thus your profit is the money you collect from the interest rate differential.

For example:

Let's say you go to a bank and borrow $10,000. Their lending fee is 1% of the $10,000 every year.

With that borrowed money, you turn around and purchase a $10,000 bond that pays 5% a year.

What's your profit?

Anyone?

You got it! It's 4% a year! The difference between interest rates!


By now you're probably thinking, "That doesn't sound as exciting or profitable as catching swings in the market."

However, when you apply it to the spot forex market, with its higher leverage and daily interest payments, sitting back and watching your account grow daily can get pretty sexy.

To give you an idea, a 3% interest rate differential becomes 60% annual interest a year on an account that is 20 times leveraged!

In this section, we will discuss how carry trades work, when they will work, and when they will NOT work.

We will also tackle risk aversion (WTH is that?!? Don't worry, like we said, we'll be talking more about it later).



hi toni I know what is carry trade, and i visit this link. :( 

Kourosh Davallou
40447
Kourosh Davallou 2013.06.02 15:00  

Hi Niloufar

 

niloufar mohamadi
1538
niloufar mohamadi 2013.06.02 15:05  
kourosh1347:

Hi Niloufar

 

Hello kourosh ,You always have good ideas..
Dua Yong Rew
5423
Dua Yong Rew 2013.06.03 05:34  

I don't know if I can post link directly?


my system on carry trade 

niloufar mohamadi
1538
niloufar mohamadi 2013.06.05 05:27  
doshur:

I don't know if I can post link directly?


my system on carry trade 

Thnak doshur 
niloufar mohamadi
1538
niloufar mohamadi 2013.06.05 05:30  
niloufar:
Thnak doshur  But your Drawdown was 40 % 
Dua Yong Rew
5423
Dua Yong Rew 2013.06.05 06:03  
niloufar:

yup, i know my dd is 40%, my system / strategy is like that

u need to look deeper than that.

for those system whose dd is small, then what is their equity/balance dd?

it is either u look at my balance or my equity growth. :) 

imade
16
imade 2014.03.07 18:41  
40% is it save?
123
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