Cash & Carry

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Quote from ElectricSavant:

I know, I know....but I do not have ALL the answers.


I could stop trading? and just collect. But these independent pairs would not hedge each other...A 10Y trend would wipe out the account if the average price does not stay near the current price.

This is a one-drectional system in each pair. You must pick the interest earning direction.
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I guess I would understand better once I see the actual trades you are making. I dont understand how averaging into positions generates positive returns unless the product is constantly mean reverting. What if trends in one direction for a couple of months - wont you end up with a horrific drawdown?
 
Quote from ElectricSavant:

The Base proportion & increment finder takes care of this. It could be widened to sustain catastrophic events, I suppose.

The gambling meter can be lowered by adding more cash to it..

A hedge can be put on, with an addition of a pair (s)
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Wouldn't anything that hedges the currency pair risk also reduce the interest production side of the system?
 
Well the other pairs don't move with it....

You are going to witness the balancing attempt I will be making soon. I have one eye on the charts as I type this.

Also the daily injection of interest helps the strengh a little.

Nothing goes in a straight line forever...Just stay near...

Michael B.


Quote from winter:

I guess I would understand better once I see the actual trades you are making. I dont understand how averaging into positions generates positive returns unless the product is constantly mean reverting. What if trends in one direction for a couple of months - wont you end up with a horrific drawdown?
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Yes. But I am concentrating on reducing DD to make the 1:4 max risk to cumulative profit easier to reach. I am lazy, I know...Wifey tells me this often.

Michael B.


Quote from winter:

Wouldn't anything that hedges the currency pair risk also reduce the interest production side of the system?
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Electric has a bad habit of late edits..

winter re-read today...

Folks, I cannot break Electric of this one hour review of his posts. He believes he is contributing to an archive and reads his own stuff as a third person. He even gets into MY posts!

Electric can be complex at times and he IS lazy...but not with his mind..

He will NOT play timed chess as he can think hours on a move while driving the car...He can photograph things, but he is not 100% as one of his buddies is. They can play chess without a board...its a site to see them practice.

Hint: You can beat most computers by sacraficing pieces..
Wifey.
 
Quote from ElectricSavant:

Nothing goes in a straight line forever...Just stay near...
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Isn't that like saying that a roulette wheel can't come up black forever? (e.g. a Martingale system betting on red)
 
But can you stay near? and can you put time on your side?

There is some facts:

Daily injection of interest
The traded pair in this system do not move together
no table minimums or maximums


Quote from winter:

Isn't that like saying that a roulette wheel can't come up black forever? (e.g. a Martingale system betting on red)
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