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Originally Posted by bbjit
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
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Hi bbjit
My immediate thought would be don't do it, but having said that if your pockets are deep enough and you get in at a reasonable level then why not, you get the rollover and the potential for profit....but then again, with a 100k account wouldn't you be better off in a high yield investment with guaranteed returns where your money is safe?
It will be interesting to hear some other views.
Mick