It would collect almost twice as much interest for less than half the required margin to secure the trade.
Even better yet is the NZD/JPY which pays even more interest and has even less margin required to maintain open position. Trouble with these aud and nzd crosses is that they will likely go opposite of the GJ as those currencies are based on gold which "should"always be stronger than the yen.
Trouble with those aud and nzd crosses is thAT for me they are harder to play.
there is way less interest and volumne in them. They are easier to manipulate
as volumne is less, volatility is high.
Sounds like you are understanding how my system works. Be careful with multiple lots at the so called bottom as GJ can trick you often into thinking it is a bottom when it is only a resting place before more downward movement so placing 5 x as many units at one price point could leave you holding too many lots too high if it sails down very far from there. Then you almost would have to sit on the sidelines and watch it go down 100 pips before you could buy any. Or maybe those 5X lots could bench you or overextend your margin. Just be careful!
My broker IBFX doesnāt give more for a/j even though the difference in interest rates is greater. It has to do with liquidity. There was a discussion about this that I started in Newbie Island.
how i said i didnāt recognized a rush down for now on my own skinā¦ =)
at the moment iām trying a bit around, thank you for that wipeout thing, that was things i have thinked about, but what should i say, the result impress me so far, and even if i am at demo i think i will let it be to buy multiple times at ābottomishā feelingā¦ :eek:
its like an easy ant job, better its like iām the conductor of antsarmyā¦
thanks for explaining me background from oceania currencies, i didnāt have thought about the correlation to goldā¦
so the british lady is expensive but and that is is character of british she is elegantā¦
so lets see what she will doā¦ i have placed limits down to 206 so hopefully she comes and take us up to the trainā¦
Buy NZD/JPY and pays me enough interest after 21 days to make 100% of the margin I need to put up to secure the 1K lot. That is 0ver 1700% per year on my equity share of .25% I guess even if it goes down and keeps going down I can hold it forever and will be up long before I die especially if I reinvest my interest and compound it in which case it would be way more than 1700% per year. SO I bught a 1k lot nzd/jpy to see how the interest goes. I am also looking into some international trust funds to see what interest I can make per month.
NZD/JPY looks like it correlates closely to GJ, very weird. I never really played NJ much, but the spread is exciting with the smallest margin requirement. So I am going to hold my 1K NJ lot for now.
GJ: still sitting with loss leader at 210.29 and holding one other long at 210.09
looking to get more longs in dips. :rolleyes:
I may be able to oblige you gentlemen. The great thing about having me around is that I short when the pair is tanking and go long when the pair is moving higher - kind of like a single-trader encapsulation of the COT report for G/J (would be nice if there were such a thing, but PFXGlobal does a very good job).
Right now I am short, and may add to my position if we find any momentum; but I do believe has temporarily succumbed to the dreaded Float (floating fish = dead fish) condition. I believe, though, the Guppy is only faking her death and will spring back when most traders are asleep at the wheel, and will kill them with an icepick to the back. But now Iām mixing metaphors.
I donāt trade NZD/JPY (Oanda doesnāt offer it), but am curious how it correlates to NZD/USD. GBP/USD and GBP/JPY float around a null correlation over time, currently at 16.3. AUD/USD and AUD/JPY, on the other hand, have a positive coefficient on both hourly and daily TFs @ .84. Not EUR/USD & USD/CHF, but thatās very good.
Iām looking for correlation data on the Kiwi pairs - any ideas? Iām interested, in general, but also because Iām anticipating a bullish reversal on NZD/USD.
She is actually swimming up stream for now. nothing could float at these levels the way she may seem to be floating. Faking her death! LOL
She does rest sometimes, she is getting fatter ya know? I never sleep at the wheel, I never use stop loss orders for anything anymore. When I sleep, my mind monitors her at her nightly parties.
NJ seems like it is stongest against yen than anything else (either AUD or GBP). Iād say the charts very closely correlate and the major controlling facotr is here is obviously yen strength or yen weakness.
I think the yen is sliding and the carry trades are coming back, LT
And the NJ is an exciting pair for holding LT.
Oh the normal orthodox way of trading. Yesā¦ I do that too. I also trade the way outlined on this thread. It works if you arenāt trading mega lots. The thing is, I make just about as much money trading this way as I do my other ways. The funny thing is that my lot size for this method is 1/10th of the size for my normal intraday methods.
The only thing I donāt do when trading the traditional way is scale in. Once I meet my profit point or stop point, I am out.
One thing about this strategy that could make me more % on my account is to stop selling my profits at 30 and 50 pips during the up turns and let the ride back up. I am going to start trying my best to do that.
To me this strategy is just like value trading the stock indexes. Buy dips down and sell up the rallies. Not too off the wall revelation as Elijah would claim this strategy is. Warren Buffet has been doing this for years.
Not a bad idea - I understand scalping long trades as the market moves with the method is a means of generating profit, but why not manage those trades - especially those opened closer to the ālowā - to maximize the gains? Those trades opened āhigherā are worth closing @ BE or +21 or wherever to both lower basis and increase available margin.
The great thing about Oanda (or any other broker that offers sub-accounts) with this method is that one could split off capital into two accounts, trading them in tandem. One could hold long in the Guppy and other Yen crosses for positive carry as described above while making an effort to buy ālowā rather than ālowerā (i.e., spending some real time with the chart), while the other account would be discretionary, aligned with the first when going long, but then taking advantage of short opportunities. Meanwhile, the other sub-account holds uninterrupted long positions to maximize swap. If I were ever to experiment with this live, that is how Iād implement it.
And youāre exactly right: this is value investing - the underlying assumption is that GBP/USD (pound sterling, really) is undervalued and should appreciate significantly in the future. Or inverse value investing (kind of like an ultrashort ETF): not that the Pound is undervalued, but that the Yen is overvalued relative to it. Either wayā¦
Yepā¦ I couldnāt put it any better than the way you just explained it. This is just swing trading with short dividend periods with direct correlation to ultra long term hold investing on shorter time frames. It just based on the value system and not the overhyped gut wrenching momentum system.
As risky as this system seems, I sleep much better at night trading this way. The key is to understand you can not use the same lot sizes that you are used to trading. If you do that, this system is extremely risky.
Swinging this on a larger time scale is also more reliable.
Do you know what an evening star represents on a 15 min chart. To me they donāt represent jack shā¦ .
lol