I've been thinking about grid based strategies designed to take advantage of volatility without incurring great risk.The idea is that the strategy be followed using a carry trade pair in the event that you do inevitably end up holding some positions. You'll want a platform with a decent spread. Oanda often has about a 3.0 pip spread on the AUDJPY pair -- my current pair of choice.So, let's
Showing posts with label grid. Show all posts
Showing posts with label grid. Show all posts
Forex Carry Trade Bottom?
Thursday, September 11, 2008
I'm probably never going to try to call a bottom, but I will point out that there is a difference in behavior since the recent panic drop. Now, we see the Yen based carry pairs bouncing off a resistance point instead of simply dropping as if they are in free-fall.What am I doing about it?I'm glad you asked. My current trading activity involves playing with a bit of a gridding strategy. When
Forex Gridding Strategy
Thursday, January 10, 2008
Okay, I'm pretty much sold on this idea. Here are some advantages to gridding the AUDJPY on the upside:Each purchase represents a carry position while waiting for it to become profitable.Extremely limited downside risk when set up properly.Excellent earning potential in choppy market conditions.Using my nano-account here is what I set up last night. Place a limit order for NNN units every 2
Subscribe to:
Posts (Atom)
