Super Carry Trade Trading System

17 April 2011
GPB/JPY
Long trades only (interest positive)
Use 0.5% of your Net Available Balance on each trade (Oanda does this automatically)

1.Enter at any time with a market order
2.Place limit orders (long) at 10 pips above initial entry
3.Place 10 pip profit targets on all limit orders, up to 200-400 pips above current market
4.If market drops (carry trade unwinds) by 200 pips enter a market order once per day, with no take profit, in an attempt to lower the average price of all orders to within 100-200 of current market. Each additional market order lowers the “average” of your orders.
5.Enter limit orders (long) at 10 pips above this market order, up to the orders already entered.
6.At any time you have more than 1 order open, and the market is above the average price, close all orders (Oanda makes this easy to do).
7.If market continues to drop, continue to place orders (as in numbers 4-6 above), attempting to keep the “average price” within 100-200 pips of current price.

Pros:

·Effective in all market conditions (ranging, trending).
·Provides profits from both trading and interest.
·Only monitor the markets once or twice per day, as desired.

Cons:

·Caution is needed during carry trade unwinds. If need be, during severe unwinds, limit further buying to only 400-500 pip drops.

0 comments:

Post a Comment

:)) ;)) ;;) :D ;) :p :(( :) :( :X =(( :-o :-/ :-* :| 8-} :)] ~x( :-t b-( :-L x( =))