Consider the Canadian dollar as a currency: if it goes up the chances are excellent the sell of cad/usd will go into profit, and with the swap in its favor.
if it goes down the chances are excellent that a buy of aud/cad will go into profit, with the swap in its favor.
- Thus News surprises of the Canadian dollar will usually ( some 80% of the time) drive one or the other of these pairs into profit with the swap. All across the spectrum there are similar such interrelationships.
Now let us look at a sell of the aud/jpy, When is this likely to be go into profit?
if the aud/cad goes up and the cad/jpy goes down
or if eur/aud goes up and eur/jpy goes down
or if aud/usd goes down and aud/jpy goes down
or if gbp/aud goes up and gbp/jpy goes up
or if audchf goes down and chf/jpy goes down
or something else
(better check those out- I get confused trying to figure out these relationships)
If any of these pairs of pairs has both going the other way, all bets are off.
If two or more of these pairs of pairs are going the right way, bets become more certain.
There is no such thing as absolute certainty. But this can give you an edge.
Best work out a scorecard so that you are not so busy trying to figure out The relationships, (which can easily be confused) that you miss the trade!
I number my windows and refer to the pairs by number, so I can verify a possible move quickly among the 19 windows I watch.
no it is not martingale, but it can sure look like it sometimes if you do not have privy to the reasons I do things.
if it goes down the chances are excellent that a buy of aud/cad will go into profit, with the swap in its favor.
- Thus News surprises of the Canadian dollar will usually ( some 80% of the time) drive one or the other of these pairs into profit with the swap. All across the spectrum there are similar such interrelationships.
Now let us look at a sell of the aud/jpy, When is this likely to be go into profit?
if the aud/cad goes up and the cad/jpy goes down
or if eur/aud goes up and eur/jpy goes down
or if aud/usd goes down and aud/jpy goes down
or if gbp/aud goes up and gbp/jpy goes up
or if audchf goes down and chf/jpy goes down
or something else
(better check those out- I get confused trying to figure out these relationships)
If any of these pairs of pairs has both going the other way, all bets are off.
If two or more of these pairs of pairs are going the right way, bets become more certain.
There is no such thing as absolute certainty. But this can give you an edge.
Best work out a scorecard so that you are not so busy trying to figure out The relationships, (which can easily be confused) that you miss the trade!
I number my windows and refer to the pairs by number, so I can verify a possible move quickly among the 19 windows I watch.
no it is not martingale, but it can sure look like it sometimes if you do not have privy to the reasons I do things.
