Carry Trade NZD/JPY
Posted: Thu Mar 27, 2008 10:37 pm
Hi all,
The idea is always buy on a pair with positive swap. As positions turn against you average down.
No need to go into too much detail with the carry trade strategy as its all been posted before:
http://www.forexfactory.com/showthread.php?t=70480
Was wondering if anyone uses this type of system with EFX?
The obvious pair to try would be NZD/JPY as the buy premium is the best (I think). It pays around $14.50 per standard pip.
Dangers of using something like this will be large draw-downs so MM would be critical to sucess.
Your thoughts and observations are welcome.
I have very little live trading experience so don't want to give a subjective opinion if I can help it.
Regards
Paul
The idea is always buy on a pair with positive swap. As positions turn against you average down.
No need to go into too much detail with the carry trade strategy as its all been posted before:
http://www.forexfactory.com/showthread.php?t=70480
Was wondering if anyone uses this type of system with EFX?
The obvious pair to try would be NZD/JPY as the buy premium is the best (I think). It pays around $14.50 per standard pip.
Dangers of using something like this will be large draw-downs so MM would be critical to sucess.
Your thoughts and observations are welcome.
I have very little live trading experience so don't want to give a subjective opinion if I can help it.
Regards
Paul