Carry Trade fees over a year

Hi, I am new to the forum and have made a system that relies upon keeping trades open for around 3 weeks at a time. Roughly what would it cost me if I was always in a trade overnight. I know the Tom rate changes between currency pair but if we say it is 0.5/3.0. The difference is 2.5% so is that annually it will come to 2.5% charges (remove 2.5% from performance) or is a lot more when its charged daily to carry it over?

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What is “the Tom rate”?

Interest rates are not static.
You would take the carry rate and simply multiply it out by your position size (keeping in mind triple roll on Weds).

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Sorry I mean the Tom next rate. I think I will focus on the interest benefit trades as my system gives me around 10 to 15% over a year at 100% equity position size. I just don’t want to do it if it wipes out my gains holding overnight through the year.

How many years has your system generated that range of return?
What’s your sharpe ratio / risk of ruin?

Looking forward to hearing more about how you trade! :slight_smile:

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What’s your trading system? Mind sharing?

I’m curious. All of my trades are done within a few days. One week max.

Will you teach me how to trade please

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Here you go!! BAM!!!

Please I beg