how does swap effect your trading

[hayseed]

how does swap effect your trading...... do you avoid pairs that charge swap.....

i had a friend once that lived entirely off swap..... this was back when the audjpy and nzdjpy paid a bundle..... that's not the case now.....

it is possible, even today, to double your account and never have a single winning trade...... large leverage would help tremendously.... positive swap adds up......

that friend only held longs which paid swap..... she never shorted which would have charged swap......
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the script below, goes in script folder, can be placed on any chart..... it will blacken out everything and the layout will be seen.....

first row is the common pairs....

second row is the daily atr.....

third row is the daily atr left.....

fourth row is the current spread when script was run.....

fifth row is the tick value of 1 pip.....

the next 4 sets are the atr for that timeframe and the $ value of that atr....

margin req row is the margin required for the chosen lot size.....

last 2 rows are long swap and short swap...... oanda does not use marketinfo_modeswap, so i had to load mine into a array.....

the script has 3 inputs.....

first..... true for mini lot..... false for standard lot....

second.... true to use market info..... false for my array.... odds are you'll leave it on true...... unless your using oanda in the states......

third is atr periods.....

so, do you avoid trading in a direction that charges swap just because of the swap..... what is your take on it......

will explain mine a bit later......h
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[hayseed]

have to admit there is something pleasing about being paid swap even it is only a few pennys...... and can't put my finger on just why having to pay a few cents hurts so much.....

my trades do seem to favor swap being paid and tend to avoid those that would charge......
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in the chart below, using the top row which is the eurusd..... the $ values are based on a standard lot.....

spread is 1.2 pips.....

tick value is 10$..... (standard lot)

the 60 minute atr is worth 78$.....

the 240 atr is worth 180$.....

the 1440 atr is worth 446$.....

the weekly atr is worth 1249$.....

the margin required is 2219$ for 1 lot....

the swap paid per day for 1 long lot is 9.95$ ...... // held across 5pm est

the swap received per day for 1 short lot is 3.64$...... // held across 5pm est
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those swap values are based on trades being held over 5pm est.....

many of my trades are closed prior, not to avoid swap, but because the targets were hit..... so swap is no concern....

it is possible to trade thru 2 days, meaning 2 london sessions and 2 new york sessions, minus a few minutes, while paying only 1 swap......

so you can effectively have 2 days atr movement per 1 swap paid..... obvious wendesday exception.....

trades placed at 5:01 pm est and closed within 47 hours, pay swap once......

swap is linear.... so the percentage effect is the same regardless of lot size.....

rather than go into something long and drawn out, the other day oanda's web site listed a gbpusd short trade swap paid at 7 cents per standard lot..... should 7 cents concern me when the daily atr is almost 1000$.....

usually the cost of swap is less than the value of 1 pip per day and only on trades held over 5pm est........... the cost of the spread far out weighs the cost of the swap.....

swap has little bearing on my accounts bottom line..... swap paid almost equals swap made.....

still, for some reason that 2 penny credit looks far better than 2 penny debit......h
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[Enivid]

I earned quite a hefty amount of money via swaps by holding a long EUR/CHF position in 2011-2014. However, I rarely consider swaps when trading my regular chart pattern strategy. But when I am considering opening some long-term fundamental-based position, I study swaps at many brokers before opening a trade to minimize negative swap or to maximize a positive one. Sometimes, I also open a sort of a carry trade by locking a positive swap trade with a swap-less binary option in the opposite direction.

 

[hayseed]

I earned quite a hefty amount of money via swaps by holding a long EUR/CHF position in 2011-2014. However, I rarely consider swaps when trading my regular chart pattern strategy. But when I am considering opening some long-term fundamental-based position, I study swaps at many brokers before opening a trade

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hey enivid...... yes i can remember you mentioning your eurchf trades back then..... do the swap values vary at different brokers much....

my friend was doing well with aud/jpy swaps around 2010 seems like..... she lives near london but had a low expense lifestyle..... she had a large account carrying many standard lots, swap provided her more than enough to live....

not really sure but my swap probably averages less than 200 a month..... and maybe half that......h

 

[TFA]

is it like earning interest on the position you are holding on to?

 

[hayseed]

is it like earning interest on the position you are holding on to?

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yes if your trade is in the direction that pays swap.....

some pairs far more than any interest rate imaginable..... usdchf for instance pays about 4$ per standard lot per day or 1465$ a year..... with a margin required of only 2000$ that swap rate would 73% per year.....

swap rates do change over time so that 4$ today might be more or less next month....

some pairs charge swap on both long and short trades , so there is no escaping the charge....

if you can get in early on a long term trend on a pair that pays swap and don't mind holding thru hundred pips price swings, swap can be the icing on the cake......h

 

[Powter]

In theory, the swap fee in the broker must be the same. but in fact, it is not so, each one way

 

[finnik]

how does swap effect your trading...... do you avoid pairs that charge swap.....

i had a friend once that lived entirely off swap..... this was back when the audjpy and nzdjpy paid a bundle..... that's not the case now.....

it is possible, even today, to double your account and never have a single winning trade...... large leverage would help tremendously.... positive swap adds up......

that friend only held longs which paid swap..... she never shorted which would have charged swap......
//------

the script below, goes in script folder, can be placed on any chart..... it will blacken out everything and the layout will be seen.....

first row is the common pairs....

second row is the daily atr.....

third row is the daily atr left.....

fourth row is the current spread when script was run.....

fifth row is the tick value of 1 pip.....

the next 4 sets are the atr for that timeframe and the $ value of that atr....

margin req row is the margin required for the chosen lot size.....

last 2 rows are long swap and short swap...... oanda does not use marketinfo_modeswap, so i had to load mine into a array.....

the script has 3 inputs.....

first..... true for mini lot..... false for standard lot....

second.... true to use market info..... false for my array.... odds are you'll leave it on true...... unless your using oanda in the states......

third is atr periods.....

so, do you avoid trading in a direction that charges swap just because of the swap..... what is your take on it......

will explain mine a bit later......h
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View attachment 15320

I dont let negative swap trades run for as long as i would a positive swap trade. That's for sure.