[results] Swaps eat all the profits

I

ionone

I'm trying to understand how investing and trading work.

I created a simple buy and hold robot that trades 9 major Indices (STOXX50,F40,JP225,AUS200,UK100,DE40,US30,US500,USTEC)

I'm trying to replicate all the "10-20% a year" that lots of traders show trading indices, but the problem is swaps. In my tests they eat all the profits

For example, I make a backtest from 2018 to 2022, trading 9 Majors indices with the same lot size for each (1.1).

I have a profit of $15224 but I pay $13104 of swaps, which is HUGE, and leaves only $2119 with $1760 of drawdown.
those results are pretty good WITHOUT the swaps.

so my question is how do you deal with the swap ? Do you open an "islamic" swap free account ? or are there special investing accounts without swaps ?

thanks a lot

Jeff
 
ok I didn't know swaps were only for CFDs. thanks for that info :)

which platform do you recommend from a european user ? with algorithmic features if possible

thanks again

Jeff
 
thank you. it seems to be really good.
but i'm afraid of the costs. With MT5 everything is free (data and all)
it's not the same for IB, right ? you need quite some amount of money, just to start ?
 
ionone said:
thank you. it seems to be really good.
but i'm afraid of the costs. With MT5 everything is free (data and all)
it's not the same for IB, right ? you need quite some amount of money, just to start ?
More...
Nothing is free in life. IB is one of the most competitive brokers in terms of commissions. Their UI may not be ideal if you are a newbie, but that's also the price you pay for low.commissions.
 
greejan said:
Nothing is free in life. IB is one of the most competitive brokers in terms of commissions. Their UI may not be ideal if you are a newbie, but that's also the price you pay for low.commissions.
More...
well no offense but i'm using primarily MetaTrader 5
it has real historical spread backtests (spread is recorded by each broker and retrieved when making a backtest so you can test your strat on a specific broker)
it has slippage simulation
and all free data. I think it's pretty close to being totally free lol...
but it's mostly forex and CFDs
Jeff
 
ionone said:
I'm trying to understand how investing and trading work.

I created a simple buy and hold robot that trades 9 major Indices (STOXX50,F40,JP225,AUS200,UK100,DE40,US30,US500,USTEC)

I'm trying to replicate all the "10-20% a year" that lots of traders show trading indices, but the problem is swaps. In my tests they eat all the profits

For example, I make a backtest from 2018 to 2022, trading 9 Majors indices with the same lot size for each (1.1).

I have a profit of $15224 but I pay $13104 of swaps, which is HUGE, and leaves only $2119 with $1760 of drawdown.
those results are pretty good WITHOUT the swaps.

so my question is how do you deal with the swap ? Do you open an "islamic" swap free account ? or are there special investing accounts without swaps ?

thanks a lot

Jeff
More...

Be aware, that the "swap free" accounts are BS... they just reclassify the swap into something else... no such thing as free
 
ionone said:
I'm trying to understand how investing and trading work.

I created a simple buy and hold robot that trades 9 major Indices (STOXX50,F40,JP225,AUS200,UK100,DE40,US30,US500,USTEC)

I'm trying to replicate all the "10-20% a year" that lots of traders show trading indices, but the problem is swaps. In my tests they eat all the profits

For example, I make a backtest from 2018 to 2022, trading 9 Majors indices with the same lot size for each (1.1).

I have a profit of $15224 but I pay $13104 of swaps, which is HUGE, and leaves only $2119 with $1760 of drawdown.
those results are pretty good WITHOUT the swaps.

so my question is how do you deal with the swap ? Do you open an "islamic" swap free account ? or are there special investing accounts without swaps ?

thanks a lot

Jeff
More...
%%
NO\ i would not do an ''islamic'' swap free account.
ENRON used a lot of swaps, but thier problems were much deeper than that.
On SPY [s&p 500];
+something full of swaps like SH which is really 95% swaps . [Different big bank swaps with SH, but all on S&P 500]
Sounds like way too may swaps + something else is not right, but I'm in USa market .
So there maybe a place for swaps, loans or insurance but you have way to many swaps +@ a way too hi price$[US market truth]
NO such thing as'' free'' lunch, unless your mom or wife gives it to you\maybe:D:D
SPY may average 12%, but includes -20% loss years like 2022.
 
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