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Hiring someone or automation could be an option indeed, thanks.

Problem with most stats/quant models is you don't really know what's behind an edge you found. Without that knowledge it may suddenly stop working and you don't know why, which can lead to serious drawdowns. The real holy grail would be something I understand on a deep level from the very basic...

Good point. However, if something is purely mechanical and doesn't have hidden slippage/commission costs, it's as close to real as possible. You advice to trade something on a real account and acquire a track record before it has any value, correct?

Trading is more a hobby for me. I spend spare time developing strategies and testing ideas. However I'm not much interested in trading them myself (ironically, my other business is a better place to invest my own money). The question is: what is the best way to optimally monetize on profitable...

Test FX account being smashed as a good reminder to only do defined risk option trades. I'm too old for the rest, lol.

I agree costs are steep. I'm sitting in a slightly profitable CHF long for about three weeks, but am net losing money due to carry. Not pleasant, but, well, who said it's market's job to please me :D . Had I held 6S long future, effect would be the same.

Not sure if that's what you talk about, but Oanda for example has interest calculator on their site and you can evaluate cost of carry of any FX positions.

Agree. Significant carry cost difference would create obvious arb opportunities, hence is very unlikely to happen. No free money in markets beyond the typical risk-free return. :)

Recent example on cost of carry. I checked Swiss franc future to short. March contract recalculated to USDCHF rate is approximately 100 pips below underlying now, which means you lose ~33 pips a month being short USDCHF via future. Holding spot USDCHF short costs about 30 pips a month, IOW, the...

If automated backtest (no curve fitting) and forward test show there's a positive expectancy, why not?

Yes. I speculate intetmediate-term (weeks to months) too and prefer spot FX over futures, especially on crosses. Simply no liquidity elsewhere.

Logically it doesn't make sense. Futures mimic spot by definition. The only difference is if your spot FX bucket shop is too greedy and rips you off more than average FX cost of carry really is.

Only you may know what target makes sense statistically (adjusted to the current level of volatility). Anybody else's advice is irrelevant, cause their system is different.

You seem to be looking for a risk free income on CC. Not going to happen.

Yes, it does. However futures more or less mimic the cost of carry too. Plus you pay double commission in case of trading futures spread vs. FX cross.

Random entry - commission = guaranteed long term loss.

Thank you for elaboration. Don't you consider adding a far OTM cheap long put leg to your plays to hedge from black swan events or it's not worth it?

@robertSt as a hypothetical sample, what would you do if you sell put at say 30 strike and all of a sudden the next day stock gaps down to 15?

Sounds like some sort of ratio spread.

Good for you, however odds are way against newbies.