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bbjit · 20-07-2005, 12:54

I want to bounce of this idea of all the old hands on the forum :

Whatif you open a small position without a stop in any currency pairs that pay more than 2% interest on your positions such as the GBP/JPY which at my broker pays 2.94% currently and USD/JPY pays 2.47%.

The idea is that you take the 80 monthly ATR and then you average down IF the price move against you that much... and never take the position down for a few years...

I also know the biggest drawdown is that if one looks at the GBP/JPY cross on the last ten years it has fallen from 570 at its peak to a low of 128 so that gives you a difference of a 442 BIG numbers in the red with the atr on average 8 - 10 one looks at more or less 55 to 44 lots IF you bought right at the top and would need just on a mini account in the region of $ 39000 to $40000, is this worthwhile if one can stand this amount of "heat" for a long time.

I know there is a lot of whatif scenarios but can you share your thoughts on this please...

Regards

20-07-2005, 12:54	#1 (permalink)
bbjit level 1 Join Date: Aug 2003 Posts: 19 Rep Power: 0	Interest rate differentials I want to bounce of this idea of all the old hands on the forum : Whatif you open a small position without a stop in any currency pairs that pay more than 2% interest on your positions such as the GBP/JPY which at my broker pays 2.94% currently and USD/JPY pays 2.47%. The idea is that you take the 80 monthly ATR and then you average down IF the price move against you that much... and never take the position down for a few years... I also know the biggest drawdown is that if one looks at the GBP/JPY cross on the last ten years it has fallen from 570 at its peak to a low of 128 so that gives you a difference of a 442 BIG numbers in the red with the atr on average 8 - 10 one looks at more or less 55 to 44 lots IF you bought right at the top and would need just on a mini account in the region of $ 39000 to $40000, is this worthwhile if one can stand this amount of "heat" for a long time. I know there is a lot of whatif scenarios but can you share your thoughts on this please... Regards Last edited by bbjit; 20-07-2005 at 13:00.