Cash & Carry
- Thread starter ElectricSavant
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Hi
1. Yes. But you trade them, not do them.
2. Yes. Buy or Sell in the direction that gives you interest difference.
Dollar cost averaging (buying additional portions as price goes up or down) is a technique some people use. Use your judgement as to use it or not. This system is not about that. If you read my original post, I say "trade using your regular trading skills"
3. May or may not be. Thats why you have to use your regular trading skills.
P.S.: If you are going to use dollar cost averaging (up or down), you had better find other reasons to invest also. For example: AUD/JPY is now trading at its 3-month support and the hourly chart is showing good strength in the form of small ascending triangles. So, I buy AUD/JPY in installments.
P.P.S: We really should sit down with a table showing cash cows, interest difference, anticipated trend of interest difference (up or down), monthly performance and yearly change relative to US Dollar index. Can somebody please post such a table ?
Real gurus also use calls and puts to increase cash flow and get downside protection.
(P.S. stands for Post Script. You can say P.P.S. But P.S.S. is meaningless)
1. Yes. But you trade them, not do them.
2. Yes. Buy or Sell in the direction that gives you interest difference.
Dollar cost averaging (buying additional portions as price goes up or down) is a technique some people use. Use your judgement as to use it or not. This system is not about that. If you read my original post, I say "trade using your regular trading skills"
3. May or may not be. Thats why you have to use your regular trading skills.
P.S.: If you are going to use dollar cost averaging (up or down), you had better find other reasons to invest also. For example: AUD/JPY is now trading at its 3-month support and the hourly chart is showing good strength in the form of small ascending triangles. So, I buy AUD/JPY in installments.
P.P.S: We really should sit down with a table showing cash cows, interest difference, anticipated trend of interest difference (up or down), monthly performance and yearly change relative to US Dollar index. Can somebody please post such a table ?
Real gurus also use calls and puts to increase cash flow and get downside protection.
(P.S. stands for Post Script. You can say P.P.S. But P.S.S. is meaningless)
Hallo,
one pair should be USD positive and EUR negative.
I use EUR/USD and/or USD/CHF for this purpose.
I traded last week AUD/JPY, GBP/CHF and the above pairs.
I checked NZD/USD in terms of correlation at
http://www.mataf.net/en/analysis-correlation.htm.
The correlation of NZD/USD is high with EUR/USD and GPD/USD.
In some market situations one needs a pair with strong correlation against USD.
In the
http://www.forexnews.com/forum/forum.asp
the tunnel method was proposed. This fits excellent as a risk tool for the pairs. The tunnel check result in
AUD/JPY long --- positiv interest
GBP/CHF long ----positiv interest
USD/CHF long ----positiv interest
EUR/USD short ----positiv interest
NZD/USD short ----negativinterest
Thanks ElectricSavant for your and Wifeys work.
The interestcow is helped me a lot. I followed You discussions in the "my latest strategy forum".
Thanks Murty for presenting the modell in code language.
Looking forward to improve my version of the the cash and carry model.
....Heinz K.
one pair should be USD positive and EUR negative.
I use EUR/USD and/or USD/CHF for this purpose.
I traded last week AUD/JPY, GBP/CHF and the above pairs.
I checked NZD/USD in terms of correlation at
http://www.mataf.net/en/analysis-correlation.htm.
The correlation of NZD/USD is high with EUR/USD and GPD/USD.
In some market situations one needs a pair with strong correlation against USD.
In the
http://www.forexnews.com/forum/forum.asp
the tunnel method was proposed. This fits excellent as a risk tool for the pairs. The tunnel check result in
AUD/JPY long --- positiv interest
GBP/CHF long ----positiv interest
USD/CHF long ----positiv interest
EUR/USD short ----positiv interest
NZD/USD short ----negativinterest
Thanks ElectricSavant for your and Wifeys work.
The interestcow is helped me a lot. I followed You discussions in the "my latest strategy forum".
Thanks Murty for presenting the modell in code language.
Looking forward to improve my version of the the cash and carry model.
....Heinz K.
Folks,
I do not think it would be effective exposure-wise to adjust the set of "carry-pair" to be groups of correlations. Interestingly going short the EUR/HUF and long the NZD/USD hedge each other...not 100% but somewhat...and this can change too.
In my mind, I try to imagine what a line chart would look like representing all three of four pair as one instrument. A hedged group would give us a flat line and great for positive interest carry. The occasional trading just brings in the balancing factor and gets us back to straight-line.
I am not interested to trade Cash & Carry in a way that puts trading back into it. I would rather like to trade it without trading tactics...S/R...flags...wedges...etc. This is not what this is all about. This is a money management system using averaging with a bonus of interest earned. If it were not for the interest earned, why would anybody in their right mind average down or up...?
I am so pleased there are some folks finding THEIR way. Its all been worth it.
Michael B.
I do not think it would be effective exposure-wise to adjust the set of "carry-pair" to be groups of correlations. Interestingly going short the EUR/HUF and long the NZD/USD hedge each other...not 100% but somewhat...and this can change too.
In my mind, I try to imagine what a line chart would look like representing all three of four pair as one instrument. A hedged group would give us a flat line and great for positive interest carry. The occasional trading just brings in the balancing factor and gets us back to straight-line.
I am not interested to trade Cash & Carry in a way that puts trading back into it. I would rather like to trade it without trading tactics...S/R...flags...wedges...etc. This is not what this is all about. This is a money management system using averaging with a bonus of interest earned. If it were not for the interest earned, why would anybody in their right mind average down or up...?
I am so pleased there are some folks finding THEIR way. Its all been worth it.
Michael B.
I do not know how much interest there is, but I will start a new journal after I can get flat in the current Cash & Carry. (this could take weeks to months to accomplish)
The new Journal will be named:
ElectricSavants New Cash & Carry.
One account Cash and Carry at 50:1. Trading four pairs AUD/JPY, GBP/CHF, EUR/HUF, NZD/USD.
An average of 100 units per 1k (INSTEAD OF 1000 UNITS per 1k of capital) to start with, based on a 5k account. Dont worry I will increase it, I just want to crawl before stepping.
Widen the increments.
New Spreadsheet no toggling back and forth between cash and carry. 30% DRAWDOWN we stop !
What do you folks think?
Michael B. (electro magnetic servant..ohh too funny, thanks murtsy)
P.S. There is trading to supplement yield and we are more diversified too!
P.P.S. I think that there is a projected APR of 25% possible with minimum drawdown of max 8%.
The new Journal will be named:
ElectricSavants New Cash & Carry.
One account Cash and Carry at 50:1. Trading four pairs AUD/JPY, GBP/CHF, EUR/HUF, NZD/USD.
An average of 100 units per 1k (INSTEAD OF 1000 UNITS per 1k of capital) to start with, based on a 5k account. Dont worry I will increase it, I just want to crawl before stepping.
Widen the increments.
New Spreadsheet no toggling back and forth between cash and carry. 30% DRAWDOWN we stop !
What do you folks think?
Michael B. (electro magnetic servant..ohh too funny, thanks murtsy)
P.S. There is trading to supplement yield and we are more diversified too!
P.P.S. I think that there is a projected APR of 25% possible with minimum drawdown of max 8%.
Here, take a look at the charts.
Don't pay attention to the weekend spreads folks.
AUD/JPY I have seen spreads as low as 3 PIPS, but most of the time 4 PIPS
GBP/CHF I have seen spreads as low as 6 PIPS, but often 7 PIPS and many times 6.5 PIPS
EUR/HUF I have seen spreads as low as 25 but usually 40 PIPS
NZD/USD I have seen spreads around 4 PIPS
Michael B.
Don't pay attention to the weekend spreads folks.
AUD/JPY I have seen spreads as low as 3 PIPS, but most of the time 4 PIPS
GBP/CHF I have seen spreads as low as 6 PIPS, but often 7 PIPS and many times 6.5 PIPS
EUR/HUF I have seen spreads as low as 25 but usually 40 PIPS
NZD/USD I have seen spreads around 4 PIPS
Michael B.
subsecond,
Thanks, and I will tell Wifey as I do not think she is reading this anymore. I miss her.
Maybe I can get her to be in the new Journal
Michael B.
Thanks ElectricSavant for your and Wifeys work.
Thanks, and I will tell Wifey as I do not think she is reading this anymore. I miss her.
Maybe I can get her to be in the new Journal
Michael B.
Thanks ElectricSavant for your and Wifeys work.
Again I am so proud of you Traders and so pleased that you are finding YOUR way.
I told Wifey and she said that you Traders are doing what you should do and is expected from you. She said to tell you to not get lazy and always look and examine those little thoughts you think about while laying in bed at night. THEY ARE VERY IMPORTANT THOUGHTS.
You are a great bunch to work with and I wish you the very best of trading. And again Thank you ET for this platform to work on.
And most of all Thank you to the Lord Jesus Christ my personal Lord and Saviour for letting me have this opportunity.
Michael B.
I told Wifey and she said that you Traders are doing what you should do and is expected from you. She said to tell you to not get lazy and always look and examine those little thoughts you think about while laying in bed at night. THEY ARE VERY IMPORTANT THOUGHTS.
You are a great bunch to work with and I wish you the very best of trading. And again Thank you ET for this platform to work on.
And most of all Thank you to the Lord Jesus Christ my personal Lord and Saviour for letting me have this opportunity.
Michael B.
Hallo,
given 2000 units and 365*24=11 hours the margin requirements and interest received give an interesting picture.
Description AUD/JPY GBP/CHF EUR/HUF NZD/USD
Action Buy Buy Sell Buy
Units 2000 2000 2000 2000
Margin Ratio 50:1 50:1 50:1 50:1
Margin 29.96 70.06 48.12 26.94
Hours 11444 11444 11444 11444
Interest 99.12 172.97 136.62 53.68
Interest/Margin 3.31 2.47 2.84 1.99
1 Hour Tunnel Buy Buy Sell Sell
Recommend Buy Buy Sell
See more in attached spreadsheet.
Heinz K.
given 2000 units and 365*24=11 hours the margin requirements and interest received give an interesting picture.
Description AUD/JPY GBP/CHF EUR/HUF NZD/USD
Action Buy Buy Sell Buy
Units 2000 2000 2000 2000
Margin Ratio 50:1 50:1 50:1 50:1
Margin 29.96 70.06 48.12 26.94
Hours 11444 11444 11444 11444
Interest 99.12 172.97 136.62 53.68
Interest/Margin 3.31 2.47 2.84 1.99
1 Hour Tunnel Buy Buy Sell Sell
Recommend Buy Buy Sell
See more in attached spreadsheet.
Heinz K.
i am asking because i am curious. sometimes i wonder if traders/investors who accumulated $2 million should just stop and retire and not deal with the crap anymore. put the $2 mil in a diversified corporate bond fund and earn 5% interest on average which equates to $100,000 a year. some may say that's setting your goals too low, but it's not a bad living and you have complete peace of mind and you are happy.
you may have lost millions before, but i think it's great that you pursued your dreams and goals. that's more than a lot of other people can say they've accomplished.
you may have lost millions before, but i think it's great that you pursued your dreams and goals. that's more than a lot of other people can say they've accomplished.
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