Tactical Carry Trade

Discussion in 'Trading Journals' started by myfxpt, Jul 14, 2017.

  1. myfxpt

    myfxpt Master Trader

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    This is a Tactical Carry Trade strategy that trades in the direction of positive swaps only. The objective is to accumulate capital gains and interest earnings, whilst applying a manual trailing stop to protect capital and progressively lock-in profits.

    The strategy combines technical, fundamental, and sentiment analysis, which I will explain along the way. Any questions, just ask!
     
  2. Enivid

    Enivid Administrator Staff Member

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  3. myfxpt

    myfxpt Master Trader

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    Thanks for the question Enivid. The key differences are trading time frame and greater consideration towards capital gains. Previously I traded the Daily/Weekly time frames with the focus being specific to swap interest earnings. Capital gains were used purely to achieve profit lock and fund additional positions within the existing pair, with the intention of creating long-term enter-hold-add positions to maximise interest earnings. This worked fine from a money management perspective but ignored opportunities to close-out with good capital gains. At the end of the day, the account made zero progress, which is a fail as far as I am concerned.

    Tactical carry trading again seeks to accumulate and earn interest, but with an equal focus on closing-out positions for capital gain should the opportunity present itself. Hence, I have switched to H1/H4 trading time frames for greater agility in closing-out on temporary market pull-backs. The Daily/Weekly time frames still play an important role in gauging the bigger picture, as do key fundamentals and market sentiment. I will continue to trade only in the direction of a positive swap in favour of a enter-hold-add position bias, as to do otherwise is to trade against the fundamentals and pay interest for the privilege of doing so, but if and when the time is right I am happy to exit, take the gain, and re-enter as soon as the next opportunity comes along.
     
  4. myfxpt

    myfxpt Master Trader

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    My open positions: AUDJPY, USDMXN, and USDTRY

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  5. myfxpt

    myfxpt Master Trader

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    UPDATE: USDTRY hits take-profit and closed-out. AUDJPY and USDMXN remain open, with USDMXN in profit-lock.

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  6. myfxpt

    myfxpt Master Trader

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    UPDATE: EURAUD position added.

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  7. myfxpt

    myfxpt Master Trader

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    UPDATE: AUDJPY and USDMXN closed out. EURZAR and USDZAR opened.

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