hi guys, i've been 'profitable' carry trading, earning 20% return on my account last year (partly due to luck, but i'll take it lol). a "set-and-forget" trading strategy best fits my life style, as i'm sure it does for most of us middle class service industry slaves.
my broker is oanda, so i will be referring to their interest rates on each pair. my carry basket is built on the euro, which has a mediocre interest rate making it possible to go long against certain pairs and short against others. the idea is to hedge equally to offset any appreciation/depreciation and concentrate on the income from interest.
my basket:
euro longs:
eur/cad pays 0.25%
eur/jpy pays 0.30%
eur/chf pays 0.30%
euro shorts:
eur/aud pays 2.65%
eur/nzd pays 0.65%
eur/try pays 4.75%
the return averages out to about 1.48 percent. so we leverage our way up to 40% return or so and theoretically make decent money.
any thoughts?
my broker is oanda, so i will be referring to their interest rates on each pair. my carry basket is built on the euro, which has a mediocre interest rate making it possible to go long against certain pairs and short against others. the idea is to hedge equally to offset any appreciation/depreciation and concentrate on the income from interest.
my basket:
euro longs:
eur/cad pays 0.25%
eur/jpy pays 0.30%
eur/chf pays 0.30%
euro shorts:
eur/aud pays 2.65%
eur/nzd pays 0.65%
eur/try pays 4.75%
the return averages out to about 1.48 percent. so we leverage our way up to 40% return or so and theoretically make decent money.
any thoughts?